Adria Airways restructuring cleared by European Commission

The European Commission has published its decision in the investigation of alleged unlawful and incompatible State aid granted to Adria Airways by the Republic of Slovenia and has found in favour of Slovenia and, consequently, of Adria Airways and confirmed that Adria Airways has not been the recipient of unlawful State aid.

On 20 November 2012, capital injections carried out between 2007 and 2011 for a total €85.5 million and the sale of Adria Airways Tehnika, at that time a subsidiary of Adria, were subjected to scrutiny in Brussels.

The European Commission has decided that these capital injections did not constitute State aid, and that the sale of shares in Adria Airways Tehnika was conducted under market conditions. In relation to the capital injection carried out in 2011, the Commission has concluded that this did constitute State aid, but at the same time that this was compatible with Community guidelines. The Commission’s investigation has shown that Adria’s restructuring programme is based on realistic assumptions and will enable the company’s long-term viability. In accordance with Community requirements, Adria has also taken sufficient compensatory measures and ensured sufficient participation of own funds.

Adria has welcomed the EC decision and believes that the company’s operations and successful restructuring with a new business model represented one of the main reasons for the Commission’s decision in its favour.

“It is extremely significant for Adria Airways that the restructuring process and the company’s future plans have convinced the Commission,” commented Adria CEO Mark An┼żur. “I see their decision as confirmation that the company is on the right track as a modern and profitable company with a clear vision and mission.”

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