Slovenia's Adria Airways Files For Bankruptcy
Slovenian airline Adria Airways has filed for bankruptcy and cancelled all of its flights after financial problems forced it to ground most of its planes during the last week of September.
"Bankruptcy proceedings were initiated by the management of the company because of the company's insolvency," Adria, which is owned by German investment firm 4K Invest, said.
Adria is the latest in a long line of small European airlines that have run into financial trouble amid industry overcapacity, cut-throat competition and high fuel prices.
Slovenia's Civil Aviation Agency had given Adria until October 2 to present a financial plan in order to keep its operating license.
Slovenia sold Adria to 4K Invest in 2016. The company has since sold all of its planes, and has been flying to several European destinations on leased aircraft. According to TV Slovenia and other media, Adria has debt of around €90 million.
Government officials said that European Union rules on state aid prevented the government from helping Adria, and added that it would also not help the company under its current ownership, which they called "irresponsible".