Adria Airways

Slovenia’s Adria Airways seeks strategic investor following restructuring

Slovenia’s Adria Airways this year plans to search for a strategic investor, hopeful it can attract interest from other airlines after completing a restructuring and recapitalisation in 2011. But the flag carrier, which has emerged as a significantly smaller and less ambitious entity, still faces significant challenges as it joins several Eastern European carriers in trying to sell stakes in adverse market conditions.

The Slovenian Government sold just under 30% of Adria Airways in Sep-2011 to a group of four banks as part of a debt for equity swap. The agreement also included a EUR50 million cash infusion from the Government, which has had to pump capital into the Ljubljana-based carrier multiple times over the last several years to cover continued losses. But the banks, which include two Slovenian and two international banks, are considered short-term investors and only agreed to the deal as it was seen as the only alternative to avoiding bankruptcy. The four banks are expected to sell their stakes at the first opportunity while the Government is also eager to further reduce its share, which now stands at just over 70%.

Europe's fringe carriers look for partners to overcome financial crisis; Cyprus Airways latest

Airlines on Europe's southern and eastern periphery are becoming more precariously positioned, but are looking for for partners to help overcome the growing financial crisis. Cyprus Airways is the latest such carrier, and reported a widening in first half losses in the six months to 30-Jun-2011, as lower top-line revenue fell and higher fuel costs squeezed the airline in the period. Cyprus Airways is also turning to implementing a raft of measures aimed at stemming operating losses.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.

Ash Attack round-up of global aviation responses: LATEST from airlines, airports, industry bodies

The impact of the Ash Attack on the aviation industry has been profound - in a short space of time. CAPA estimates The Ash Attack has already affected the travel plans of 8 million passengers in Europe and around the world, causing at least USD1 billion in lost (and unrecoverable) revenue for the worldwide aviation industry. To this should be added lost ancillary revenues and the costs airlines will incur for re-routing aircraft, as well as caring for stranded passengers and stranded aircraft at various ports. The total cost for the aviation industry (airlines, airports, suppliers, freight operators, handlers etc) could be well over USD2 billion, and rising with each day of disruption.