Adria Airways has until October 2 to present a financial plan

Slovenia’s Civil Aviation Agency (CAA) has given Adria Airways until October 2 to present a financial plan in order to keep its license to operate, CAA head Rok Marolt said on Wednesday.

He said Adria needed a capital hike of several tens of millions of euros, and the airline’s license would be taken away without further deliberation if the company failed to present a financial plan by the specified date, Reuters reports.

Marolt was not able to say whether the airline would resume flights on Thursday, while Adria was not immediately available for comment.

Marolt said the financial plan would need to include contracts with the owners of leased planes and payments of delayed wages to Adria employees.

Adria said on Tuesday it was in talks with a potential investor but gave no details.

Reuters writes that Adria is the latest in a long line of small European airlines to run into financial trouble amid industry overcapacity, cut-throat competition and high fuel prices.

It canceled 158 flights on Tuesday and Wednesday - most of those scheduled - due to its financial problems, affecting more than 3,700 passengers, the British news agency adds.

Slovenia sold Adria to German investment fund 4K Invest in 2016. The company has since sold all its planes and has been flying leased ones to European destinations, including Germany, France, Netherlands, Belgium, Austria and the Balkans.

Adria Airways Slovenija

Slovenian Civil Aviation Agency

CAA

Adria Airways

Rok Marolt

4K Invest

airplanes

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