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Capital Increase Carried Out at Adria Airways

Brnik, 04 October (STA) - A EUR 2.5m capital injection in Slovenian flag carrier Adria Airways and a EUR 7.2m capital injection in its subsidiary Adria Airways Tehnika, a maintenance company, was concluded on Monday, Adria Airways said in a press release, adding that it would now start looking for strategic partners.

Adria Airways was provided fresh capital by the state-run PDP restructuring fund (PDP), which invested EUR 2m. Tourist companies Kompas and Palma chipped in a total of EUR 500,000.

PDP also provided fresh capital to Adria Airways Tehnika (EUR 2.7m). Also entering the ownership structure of the company is the Ljubljana airport operator, Aerodrom Ljubljana, which converted EUR 4.5m in its claims to Adria Airways Tehnika into a stake.

"We are satisfied and happy that our biggest two partners also saw a business opportunity in joining the capital injection at Adria Airways," the company said, referring to Kompas and Palma, whose business with Adria Airways amounts to EUR 11m a year.

According to Adria Airways management, the capital injection was necessary because of the commitments to creditors and expansion of business, primarily for the construction of an additional hangar.

The management does not expect new injections in the near future. The company will start "talks with major airlines and aircraft maintenance companies about their entry in the company as strategic partners."

The EUR 2.5m injection at Adria Airways was endorsed by the shareholders at the beginning of September. They also tasked the management then to make a report on measures for boosting the company's operations within three months.

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