Another European airline files for receivership amid financial woes

Slovenia-based carrier Adria Airways has filed for receivership after having to suspend most of its flights over the past week amid financial woes.

A court in the Slovenian town of Kranj will decide on the motion in the next three days, reported the official STA news agency.

The carrier said that the proposal had been filed due to insolvency and in line with legal provisions applying for such a situation, STA added.

The announcement comes hours after Slovenia’s economy minister Zdravko Pocivalsek said receivership was the only possible outcome for the company.

Formerly Slovenia’s national carrier, Adria Airways was sold in 2016 to German investment fund 4K Invest.

Mr Pocivalsek criticised the German owner of the airline, saying that Adria Airways’ losses were higher than previously expected.

He said Slovenia could set up a new national carrier after the declared receivership, suggesting Adria Airways would need 28 million euros to restart normal operations.

Mr Pocivalsek added that the government cannot step in to help Adria Airways, even though its grounding affects the small nation’s economy and tourism industry, because the company is privately owned and has high debt.

“This would entail us taking over a high debt and enabling the owner to avoid any accountability,” Mr Pocivalsek said.

“This would be irresponsible to the citizens and the budget.”