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Adria Airways receives confirmation from the EC that it is on the right track

Author: Adria Airways - The Airline of Slovenia

Zg. Brnik, 9 July 2014 – The European Commission today published its long-awaited decision in the investigation of alleged unlawful and incompatible State aid granted to Adria Airways by the Republic of Slovenia. The Commission found wholly 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 the 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 Commission has decided that the capital injections between 2007 and 2010 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 welcomes the decision of the European Commission and believes that the company's operations and successful restructuring with a new business model represent one of the main reasons for the Commission's decision in its favour. Adria believes that the Commission's decision is proof that through consistent implementation of the restructuring programme, the company is capable of adapting successfully both to the demands of the market and to Community requirements.

"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 Anžur. "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."