Adria Tehnika privatisation enters final phase

Slovenia continues sell-off in aviation sector

The privatisation process of Adria Airways’ maintenance division, Adria Airways Tehnika, is entering its final phase with the company expected to be sold by the end of June. In 2010, Adria sold its 100% stake in Adria Tehnika to the operator of Ljubljana Jože Pučnik Airport (46.7%) and the state-owned financial holding company PDP (52.3%). The tender for the submission of bids for a 100% stake in Tehnika expired in late March. Zmago Skobir, the Managing Director of Ljubljana Airport, says, “We will open the bids, evaluate them and decide how to proceed. If we are happy with any offers, we will make a shortlist and start negotiations. Sales procedures should be wrapped up by the end of June if there are any satisfactory offers”.

The names of the companies vying for Tehnika have not been disclosed. Several months ago, unofficial reports suggested Express Airways and Avia Solutions were among the bidders, but additional firms are said to have come forward thereafter. Despite hopes for a bid from Bombardier, the Canadian plane manufacturer did not put in an offer. Adria Tehnika is yet to release last year’s results. In 2013 it posted sales of 20.8 million euros and a net profit of 900.000 euros, making it one of the most profitable maintenance centres in the former Yugoslavia. The Slovenian government is seeking to finalise Tehnika’s sales prior to the privatisation of Adria Airways. The state is looking to sell its 91.6% stake in the national carrier by the end of the year and thus complete the sell-off in Slovenia’s aviation sector which began last year with the privatisation of airport operator Aerodrom Ljubljana to Germany’s Fraport.

Independent maintenance companies in ex-Yugoslavia
2013 financial performance

Company	Net profit €
Adria Airways Tehnika	▲ 900.000
Jat Tehnika	▲ 230.000

Adria Tehnika is not only the base maintenance provider for the Slovenian national carrier but also for SAS Scandinavian Airlines, Wizz Air, Air Méditerranée, Afriqiyah Airways, Germanwings, Air India, Austrian and several others. The company is the maintenance facility for the Bombardier CRJ100/200/700/900 aircraft and works in partnership with Air France Industries on maintenance and service checks on the A320 family of aircraft. It is Europe’s leading third party maintenance provider for CRJ100/200/700/900 jets. Tehnika’s facilities consist of the main hangar, stretching over 1.700 square meters, two new hangars, both 2.300 square metres, and workshops covering an area of 700 square metres. Under the original takeover deal with Ljubljana Airport, Tehnika’s facilities remained in ownership of Adria Airways, however, they too were sold to the airport in 2013.