Unsurprisingly, Slovenian based Adria Airways has finally gone bankrupt, adding a fourth high profile airline to Europes September toll.
The airline had tried to stabilise its finances by stopping trading for two days while it discussed options with its bankers, but a combination of fierce competition from the big LCC/ULCC airlines and Lufthansa’s Eurowings, chronic European over-capacity (which nobody is ready to back away from as they wait for the next airline to fail, hoping to take up the slack), made things untenable.
The additional pressure of a price spike in fuel caused by the Iranian attack on Saudi Arabia’s oil plants, coupled to the new extension to useable cash restrictions on forward sold tickets, was too much for the regional airline to absorb as the low bookings season hit advanced ticket sales.
Adria joins Thomas Cook, AigleAzur and XL Airways – all of which collapsed in September.
Adria had operated 18 aircraft, all leased, 3 A319’s, 2 CRJ-700’s, 8 CRJ-900’s and 5 Saab 2000’s.