Avgen Global Places Bid For Failed Adria Airways

Irish consultancy group Avgen Global has placed a bid for collapsed Slovenian flag-carrier Adria Airways. The airline ceased operating in September of this year after 58 years of service. Bids opened today for purchasing of the airline in its entirety or in parts.

Slovenia's Adria Airlines Aircraft
Bids are still coming in for the assets of collapsed Adria Airline. Photo: Aero Icarus via Flickr

Janez Pustatičnik, the receiver for the airline during bankruptcy, has announced today that bids are still open for the defunct airline’s assets. Assets include the brand, land property rights, contacts, airport slots, aircraft parts and several properties including the head office building. Initially, bids were due to close on November 10th, but as bids are still coming in, it seems as if that deadline was not firm.

Although investors could still get their hands on some office supplies and buildings, the airline has no aircraft. Its entire fleet was leased, so bidders won’t be picking up any planes for a low price.

Adria collapse

Adria Airways collapsed in September 2019 after almost 60 years of operation. Initially set up as a flying school, the ATO Licence is also for sale which would allow the buyer to continue training pilots.

The airline was privatized and bought by a Luxembourg company in 2016 in an attempt to solve its problems. However, by 2018, the operating loss of 16.2 million euros ($17.8 million) proved to be too much. At the time of its collapse, the airline’s liabilities stood at 62.2 million euros ($68.4 million).

Bidding wars

With the airline’s assets up for sale, a bidding war has begun, although details are few and far between. But, it seems that that the Irish aren’t the only ones interested in parts of Adria’s assets. Electric aircraft maker Pipistrel has confirmed a bid for the Adria Airways flight school. Some students and instructors from Adria have reportedly already moved to Pipistrel following Adria’s collapse.

Pipistrel electric aircraft
Electric aircraft maker Pipistrel is rumoured to be bidding to Adria assets. Photo: Alec Wilson via Flickr

Additionally, Slovenian news channels are reporting that two Slovenian entrepreneurs have placed bids for part or all of Adria but again, details are scarce. Also rumored to be in the running is a Slovenian real estate developer, apparently looking to bid for the commercial flying license.

It has also emerged that the Slovenian government is in talks with foreign airlines in an attempt to save its national carrier. However, the front runner for a partnership with the Slovenian Government, Lufthansa, has made it clear it is not interested in the proposal. The future for Slovenia’s national carrier remains unclear.

EX-YU Aviation News is also reporting that Adria has been attempting to keep its slots at Amsterdam Airport since its collapse in September, perhaps creating some hope that the airline may take to the skies again sometime soon. What form this will take is anyone’s guess.

lufthansa aircraft
Lufthansa has been clear that they have no interest in forming a partnership with the Slovenian Government. Photo: Lufthansa

What’s next?

Whatever the next steps are, it is clear that Slovenia is keen to get planes in the air and people back into jobs. Adria had over 400 staff when it collapsed and it’s believed that the airline used to bring in 400,000 tourists every year as well as business connections.

While details of the bidders and the bids themselves have not been released, those who place a bid for Adria will be informed of the outcome within the next fifteen days.

What do you think the fate of Adria will be? Will Slovenia be able to resurrect their precious national airline? Or will the Irish be successful with their bid?