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Adria Airways
Adria Airways posted disappointing results for 2016. Foto: BoBo

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Adria Airways still in deep waters despite selling its brand name

Air carrier faces uncertain future
13. September 2017 ob 22:22
Ljubljana - MMC RTV SLO

The Slovenian Sovereign Holding (SSH), the custodian of state assets, last year sold Adria Airways for a mere 100,000 euros and recapitalized it to the tune of 3 million euros. However, even with government intervention, the company remains in trouble.

The airline was bought by 4K Invest, a German investment fund. The fund sold the Adria Airways brand name in December, giving the struggling company a much-needed capital infusion.

Adria Airways ended the 2015 fiscal year with a loss of 9 million euros. In 2016, the company reported an operating profit of 3 million euros. However, last year’s profit was mainly due to the fact that the company sold its brand name. The buyer agreed to pay several hundred thousand euros in licensing fees until 2025. Adria Airways has declined to disclose the name of the buyer, and the Slovenian Sovereign Holding has denied rumours that it was the Slovenian government itself who bought the brand name.

Peter Marn, a former shareholder, believes that the brand name was sold in order to rescue the ailing airline. "Only those involved in the sale know the real numbers. However, the increase in profit was mainly due to the sale of some of the airline’s assets – and not due to improved business results," said Marn.

Adria Airways posted disappointing figures for 2016. Passenger numbers, cabin occupancy, and flight numbers were all down year-on-year. The ailing air carrier faces an uncertain future, and its fate will be decided by the German investment fund and its owners.

Simeona Rogelj, Radio Slovenija; translated by D. V.