September 26 (SeeNews) - Slovenia's Civil Aviation Agency (CAA) has given troubled flag carrier Adria Airways one week to present a financial restructuring plan, or face withdrawal of its operational licence, local media reported.
The plan should be supported with signed lease agreements for airplanes and an air operator certificate (AOC), state news agency STA reported on Wednesday, quoting information from CAA.
In a separate report on Wednesday, STA said that despite the fact that economy minister Zdravko Pocivalsek has pledged to support Adria within the legally prescribed limits, the infrastructure ministry has already prepared a draft law to keep alive Slovenia's air links with the rest of the world in case of Adria's bankruptcy. According to the report, the government could subsidise certain routes.
The economy ministry said earlier this week its options to help out Adria Airways are limited by the fact that it has already provided 70 million euro ($76.5 million) in support to the airline back in 2011 and that the EU laws ban Ljubljana from extending another state aid to the same company within a ten-year period.
On Wednesday, Adria Airways extended the suspension of all flights on September 26 and 27, except connections to and from Germany’s Frankfurt, while it continues to search for potential investors and creditors.
Adria Airways has discontinued its flights since September 24 for lack of funds to run its daily operations.
On Monday, US leasing firm AeroCenture terminated the leases of two Bombardier CRJ900s in Adria's fleet due to payment defaults accumulation, saying it will do so with its last remaining CRJ 900 aircraft on lease to Adria if the latter does not settle its payment defaults by September 27.
The news came after Dublin-based Trident Aviation Leasing Service unilaterally terminating last week its lease agreement with Adria Airways on two Bombardier type CRJ900 planes.
Earlier this month, CAA began a check of Adria Airways' operations and financial performance causing fears that the airline's operational licence may be withdrawn. Its findings will be known by the end of October.
Adria's financial statements in the past three years might have been manipulated to cover up its loss and the growing need of fresh capital, according to earlier media reports.
German-owned fund 4K Invest via its wholly-owned subsidiary AA International Aviation Holding GmbH bought the airline in 2016 from Slovenian sovereign holding company SDH, which is coordinating the privatisation process in the country.
($=0.91474 euro)