Looking to start an airline? Ex-Adria Airways assets are now for sale to the highest bidder, with the liquidation managers inviting prospective buyers to come and examine the items on the portfolio. Items up for grab include everything from office supplies to the companies buildings. But many will be disappointed that aircraft are not included in the list, as the airline only leased its fleet and never actually owned any airframes.
Who were Adria Airways?
Adria Airways was the flag carrier of the country of Slovenia, operating as a government airline since 1961. In 2016 the airline was privatized with the hope to use the funds to fix operational problems and expand the business.
However, earlier this year the airline ran into cash flow problems and, after months of struggling, eventually went bankrupt. At their peak, they had an 18 strong fleet of aircraft:
- Three Airbus A319s,
- Two Bombardier CRJ700s,
- Eight Bombardier CRJ900s
- Five Saab 2000s
These aircraft were all leased, and as soon as the ball dropped about their financial problems lessors swooped in to take back the aircraft (the three Airbus A319s were taken the same day as the bankruptcy).
To add insult to injury, the airline operator certificate was revoked by the Slovenian civil aviation agency and the carrier banned from any passenger flights due to its insolvency. Star Alliance, the airline alliance that Adria Airways was a part of, also kicked them out due to their money woes, claiming that it was a “regrettable development“.
As mentioned in a previous article by Simple Flying’s Jo Bailey, “What happens beyond here will be up to the creditors. It’s likely that they’ll want to liquidate these assets as quickly as possible, so will be keen to secure a buyer [for the companies assets]”
What are the details?
According to Seenews.com, the bankruptcy trustee has opened up company assets for bidding until November 10th. Potential buyers can bid for all the companies assets or just particular items.
On the table for sale ranges from the property of the company (physical buildings, office supplies, cars, etc) to property rights (logistics rights, contracts, airport slots). In fact, the brand itself is available for purchase so if someone wanted to resurrect the airline (like someone is trying to do with WOW) they have that opportunity.
Unfortunately, as their entire aircraft fleet was leased, none of the jets they had operating will be available for sale. This will likely prevent many airlines from considering a purchase.
These funds raised will go to creditors who are suing the airline for sunk costs, such as fuel payments and airport fees.
Bidders are expected to hear back from the trustee on the 25th of November if their bid has been successful.
What do you think? Will you bid for the airline? Let us know in the comments.