Slovenian flag carrier suspends flights over liquidity problem
[LJUBLJANA] Slovenian flag carrier Adria Airways suspended all its flights on Tuesday over liquidity problems but said intensive talks were under way to resume operations.
"The decision to temporary suspend all air operations is due to the current lack of fresh cash needed to continue with the flights," the airline said in a statement on its website late Monday.
It added the financially distressed company was "in intensive talks to find a solution with potential investors."
The Slovenian state sold the financially stricken carrier, which operates regional flights between the Western Balkans and other parts of Europe, to German investment fund 4K in 2016 after having put over 50 million euros (S$75 million) into it.
But under the new owner the airline continued to lose money, and Slovenian media speculated that a bankrupcy procedure could be imminent after two of its 16 jets had to be grounded last week over unpaid bills to a lender.
Prime Minister Marjan Sarec confirmed Adria Airways had asked the government for financial help to continue with its operations but warned it was a privately owned company and there was nothing the state could do.
"We all know that would be throwing away money," Mr Sarec said earlier this week.
In its statement, Adria Airways said flights had been cancelled for Tuesday and Wednesday, apologised to passengers for the problems and advised them to follow the situation on the company's website.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Volkswagen to keep China market share stable as price war rages
COE quota for May-July up 2.7%; passenger car categories rise despite less cut-and-fill
Tesla profits tumble but shares rise on new vehicle plan
Volvo Cars see good demand this year after higher Q1 unit sales
Capital A chief Fernandes defers retirement, renews contract for five years
Victims’ families to urge US prosecute Boeing over fatal crashes