No Surprise: Adria Airways Files For Bankruptcy

Filed Under: Other Airlines

It’s a Monday, so you know what that means — another European airline is filing for bankruptcy and ceasing operations (last week it was Thomas Cook). This time it’s Adria Airways, the national airline of Slovenia, and also a Star Alliance member airline.

Adria Airways Files For Bankruptcy

Per a notice on their website, today (September 30, 2019) Adria Airways has filed a motion for bankruptcy proceedings at the Kranj District Court, and has announced that they’re ceasing all operations.

The bankruptcy proceedings have been initiated by the management of the company because of their insolvency and based on the Slovenian Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act (ZFPPIPP), which obligates the management of a company in the position of Adria Airways to file for bankruptcy proceedings.

The court has a three day period within which it shall decide on the opening of bankruptcy proceedings.

What Happened To Adria Airways?

The above announcement shouldn’t come as a surprise to anyone who has been following the situation (or reading OMAAT).

Last Tuesday Adria Airways “temporarily” suspended a vast majority of their flights. The airline has been struggling financially for a very long time, though it finally got so bad that their planes started being repossessed and they couldn’t afford to operate anymore.

For most of last week they operated a single daily flight to Frankfurt, given that this is their most important foreign destination due to their partnership with Lufthansa.

The problems continued through the weekend, and most recently Adria Airways announced a majority of operations would be suspended through Monday.

The Slovenian Civil Aviation Authority had given the airline a deadline of Wednesday, October 2, to submit a restructuring plan, or else they will suspend their Air Operators Certificate.

Clearly the airline has realized there’s no chance that they’ll come up with a legitimate restructuring plan. Obviously there was no practical way that was going to happen, so they’ve now filed for bankruptcy.

Bottom Line

Short of a temporary bailout by Lufthansa or the Slovenian government, Adria Airways’ bankruptcy was inevitable.

It will be interesting to see what happens next for Slovenia, as the country is left without a national airline. Will Lufthansa beef up operations in Ljubljana? Will low cost carriers pick up the slack at the airport? I guess we’ll find out soon.

Comments
  1. There is an idea from Slovenian government to establish a new government owned airline… somehow I do not see that likely

  2. I’m surprised a high-profiled Slovenian model slash businesswoman didn’t buy an airline in debt and rename it after herself just like her hubby did. Next up: Indonesian airline Sriwijaya Air. Leaving AirAsia group as the only challenger against a Garuda-Lion duopoly.

  3. Don t think it will be overrun with llc’s. I mean, Slovenians don’t like adria and all travel to Croatia/Italy for llc’s instead of traveling on adria.

    Right now you have wizz to Brussels, easyjet to London and transavia to ams. If the lccs saw potential, it would already happen. Ryanair loves to fuck over Lufthansa on monopoly routes.

  4. Many years after the Hungarian flag carrier Malev went bust (leaving the country without an airline) Poland’s LOT has become the defacto national carrier in Budapest. Slovenia could see a similar situation with mainline carriers Austrian, LH, Alitalia, Air Italy, Air Serbia, Czech and/or Croatia Airlines filling the void. Easyjet, Ryan, Lauda, Wizz, Eurowings,and/or Vueling could move into the LCC market. Slovenia, like Hungary was, is up for grabs. Let the free market decide.

  5. Not a good ending for an airline that has been around for almost 60 years…it will be interesting to see who moves into and starts to dominate LJU…

    Adria also had bases at Pristina and Tirana airports and offered flight to and from those airports from Frankfurt and Munich. Will Lufthansa pick up the slack there too?

  6. Hey Lucky, i think another airline is going to bite the dust. Would you cover the story of Sriwijaya Air, they’re a private-owned airline based in Indonesia.

    Just in this month, they get into problems with Garuda Indonesia Group, got sued by Citilink, grounded more than half of their fleet, cancelled a lot of flights, and two of their director (Operational and Technics) just resigned.

  7. @Ray
    Sriwijaya is already fully managed by Garuda. The plan was in the works for at least 2 years before being announced.
    Source: One of my friends is an executive for the airline, upper management was regularly meeting with GA to discuss plans.

  8. Not surprising…I have always wondered though how Adria (and Croatia Airlines) managed to get into and keep paying their dues to Star Alliance. They both are really minuscule (20 and 12 aircraft fleets respectfully) and don’t offer much to Star Alliance. Like couldn’t Lufthansa offer a FRA-LJU and/or MUC-LJU route and I am assuming offer 90% of what Adria is giving Star Alliance and probably at a lower cost.

  9. LJU airport and the surrounding countryside are ripe for development. I’m pretty sure there isn’t a single hotel within 5-10 miles of the airport

  10. Last week Thomas Cook (although more of a travel agent which included an airline part), this week Adria, next week Norwegian? šŸ˜€

    Anyway, good riddance. I won’t miss them, honestly. Sub-standard service in many respects.

    Will Slovenia miss a national airline? I think the whole concept of flag carriers is like a coelacanth: a leftover from an era long gone by, but somehow still alive. We opened up the skies years ago and many airlines take advantage of it. Besides, Slovenia is so small, basically the size of a big stamp, that you have plenty of choice of other airports and airlines within driving distance. That said: the airport in Ljubljana serves many more airlines which are still in business, so it’s not like Slovenia is suddenly thrown back in the stone age now.

  11. As an immediate effect, Air France jacked up their prices to Paris 3-4x in just a day. Other destinations a bit less. If you wanna fly between Ljubljana and Paris in October, you will have to pay at least 500 usd one way… (+return). And thats for a seat in economy…

  12. Nice that AF is fast to poach people and their money. Iā€™d encourage others who are flying in and out of LJU, or who want to do so, use skiplagg for the time being until the situation gets settled.

  13. I filed a claim with them in July and never heard a single word back after they sent back a reference number. They owe me $800 US. The flight left early and left me stranded in Frankfurt. I had to buy 2 tickets for my wife and I to fly to Macedonia. Glad they are gone.

  14. What will happen with the Adria miles? Can I assume that they can no longer be redeemed at the M&M program (LH, SW and others)?

  15. Its really shame i bought 2 tickets with this airline and i i don t know who to contact dose someone know if is any way how to clam the money back in this situation

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