Slovenia-based Adria Airways said it has been unofficially informed
that the European Commission (EC) has opened an investigation into the
state's measures for the benefit of the company from 2007 to 2011.
“We would like to stress that it is in the interest of Adria to prove that all the measures so far were carried out in accordance with the applicable legislation,” Adria Airways said, adding the move is no surprise to the company.
The financially troubled carrier believes the capital increase between 2007 and 2011 and the sale of shares of the subsidiary Adria Airways Tehnika do not represent state aid as all the investments met the criteria of the Market Economy Investor Principle.
Adria estimates the entire investigation procedure will take more than a year. Adria Airways received a €50 million ($64.8 million) capital boost in September 2011, but said it would need an additional €9 million to cover its negative working capital and survive the winter.
“We would like to stress that it is in the interest of Adria to prove that all the measures so far were carried out in accordance with the applicable legislation,” Adria Airways said, adding the move is no surprise to the company.
The financially troubled carrier believes the capital increase between 2007 and 2011 and the sale of shares of the subsidiary Adria Airways Tehnika do not represent state aid as all the investments met the criteria of the Market Economy Investor Principle.
Adria estimates the entire investigation procedure will take more than a year. Adria Airways received a €50 million ($64.8 million) capital boost in September 2011, but said it would need an additional €9 million to cover its negative working capital and survive the winter.
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