Slovenia’s Adria Airways has been given one week to fix its finances and present the Slovenian Civil Aviation Authority with a solid restructuring plan. The airline had to ground all aircraft earlier this week as it reached a financial crunch point, and has reportedly extended the grounding for another two days.

The airline previously operated a fleet of 18 aircraft, including three Airbus A319s, 10 Bombardier CRJ series aircraft and five Saab 2000s. However, it has been reported that over the last few days, all three Airbus aircraft and five of the CRJs have been repossessed, leaving the carrier with a fleet of just 10.

The airline employs around 500 people. Although official spokespeople are keeping tight-lipped about its level of debt, German news site Airportzentrale is reporting the debt to be around €60m ($65m).

A week to sort things out

Slovenia’s Civil Aviation Agency has given the carrier until next Wednesday, October 2^nd, to prove it can turn things around. It has until midnight that day to submit a restructuring plan which the CAA considers to be ‘viable’, and which they say must be supported by certified aircraft lease agreements.

Ex-Yu Aviation reports that, if the carrier fails to do this, the CAA could revoke its Air Operator’s Certificate (AOC) and will look to commence bankruptcy proceedings. The CAA has said that Adria is insolvent by two criteria. In a statement to Reuters, the airline said,

“Adria Airways is still leading active discussions with potential new owners and major creditors and remains dedicated in reaching a positive solution for all.”

Reuters also reported that Slovenia’s Economy Minister, Zdravko Pocivalsek stated that the government would help Adria, but that it would not do so while under the current ownership.

Suspension of flights extended

This morning, Adria announced that it would extend its temporary flight suspension for an additional two days, as it strives to fix its financial state. Reported in Business Traveler, the airline has extended the previous 48-hour grounding for an additional two days, at least until Friday 27^th September.

However, one route will still see service, and that’s the route between Ljubljana and Frankfurt. A statement from the airline read,

“Adria Airways announces that it will continue with temporarily ceased majority of its flight operations also on Thursday, 26 September and Friday, 27 September.

“During these two additional days, the company will maintain a connection to its most important hub in Frankfurt. The Airline plans to operate on both days evening flights on route Ljubljana – Frankfurt – Ljubljana.

“Adria Airways is still leading active discussions with potential new owners and major creditors and remains dedicated in reaching positive solution for all.

“Adria Airways still advises its passengers to check who their carrier is before they arrive at the airport and if it is Adria Airways then they should contact sales offices where tickets were purchased.

“The company deeply regrets that it will continue with disruptions in next two days and apologizes to all its passengers and partners.”

A number of airlines have stepped in, in the wake of the loss of flights by Adria. Montenegro Airlines has added a new weekly flight from Podgorica, taking their services to five times a week. Air Serbia has begun twice a day flights between Belgrade and Ljubljana, an increase from the normal 11 flights per week.

In addition to this, Air Serbia has also begun offering rescue fares to repatriate those passengers booked to fly on Adria Airways.