Air India wants Adria

The Slovenian Government wants Air India to take over Adria

The indebted Slovenian national carrier, Adria Airways, could soon be saved by Air India. The “Večer” daily reports that the Slovenian and Indian governments have been negotiating about a potential takeover of Adria Airways by India’s national carrier for several months and a final agreement could be reached in mid June when the Slovenian Prime Minister, Borut Pahor, visits the subcontinent. Air India, which itself is swimming in debt would purchase a certain amount of shares which would be increased over the next 5 years. Similar talks of a potential Adria takeover between the government and Qatar Airways, Turkish Airlines and Lufthansa have all ended unsuccessfully.

Adria Airways now owes up to 80 million Euros to banks and a further 20 million to suppliers. In May the government granted state guarantees for a short term 6.1 million Euro loan for Adria. Further assistance by the government will be provided as the carrier carries out its restructuring process.

Air India is government owned and is the largest airline in the country. It will become a Star Alliance member this summer. Its only interest in the region was shown several years ago when it wanted to set up a joint venture airline with Jat Airways with its base in Belgrade. Ultimately, the plans between the two never materialised.