Adria Airways Files For Bankruptcy

Slovenian carrier Adria Airways has filed for bankruptcy. The airline becomes the third to enter bankruptcy this week, along with Thomas Cook and XL Airways. The airline announced last week that it would be temporarily suspending operations.

Adria Airways, Slovenia, Bankruptcy
Adria Airways has filed for bankruptcy. Photo: Transport Pixels via Flickr

It hasn’t been a great September for the aviation industry. Along with the high profile bankruptcy of Thomas Cook a week ago, french carriers XL Airways and Aigle Azur have also entered bankruptcy. Now, the Slovenian flag carrier Adria Airways has also filed for bankruptcy. As such, all scheduled flights have been canceled with immediate effect. The bankruptcy filing is pending the approval of the Kranj District Court in Solvenia.

Who were Adria Airways?

Adria Airways was the flag carrier of Slovenia. Founded 58 years ago in March 1961, the airline had gone on to become a member of the Star Alliance. The airline’s slogan is Taking Off To The Future, however, unfortunately, the airline will not be taking off anywhere any time soon.

In March 2016, when the carrier was 55 years old, 96% of the airline was purchased from the State of Solvenia, marking the airline’s privatization. The airline then went on to purchase Darwin Airline in July of 2017, however, that airline was announced bankrupt in December of 2017.

Adria Airways, Slovenia, Bankruptcy
In 2017 Adria purchased Darwin Airline. Photo: Aero Icarus via Flickr

The airline’s fleet

According to Planespotters, Adria Airways was operating with 18 aircraft at the time of its collapse. They report that as of the 24th of September, this consisted of three Airbus A319s, two Bombardier CRJ700s, eight Bombardier CRJ900s, and five Saab 2000s. However, earlier this week CH-Aviation reported that the airline’s three Airbus A319’s had been repossessed.

According to Simple Flying’s Jo Bailey, aircraft that are owned “will effectively become the property of the airline’s creditors. 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.” Leased planes, however, return to the lessors assuming they haven’t been impounded.

Adria Airways, Slovenia, Bankruptcy
Adria temporarily suspended operations last week. Photo via Pixabay

Adria statement

Adria Airways issued a statement on its website that read the following:

On Monday, September 30, 2019, Adria Airways filed a motion for bankruptcy proceedings of the company at the Kranj District Court.

Bankruptcy proceedings were initiated by the management of the company because of the company’s 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 of the company.

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

The company announces that it will cancel all scheduled flights due to initiation of bankruptcy proceedings.

Have you been affected by the collapse of Adria Airways?