Adria Airways prepares draft plan for the financial and operational restructuring of the company and terminates collective agreements

11.03.2011

Following approval by the Board of Directors and pursuant to a previous agreement with creditor banks and owners, the company sent to all creditor banks today a draft plan for the financial and operational restructuring of Adria Airways d.d. The final, complete and revised plan will be prepared at the beginning of May, as previously agreed.

The aforementioned document comprises all key measures for the restructuring of the company, including commercial, operational and fleet-related measures, and measures of a financial, personnel and general nature.

Pursuant to the draft plan and as previously agreed, the first meeting between the company’s new management and all four unions was held today. At the meeting, management set out in detail measures by individual areas, and presented to the unions a timetable for and the expected effects of these measures this year and in 2012. Since one of the company’s objectives is to order labour relationships, management terminated existing collective agreements effective 11 March 2011 and submitted a proposal for a new collective agreement. The unions were briefed on management’s position and its reasons for the enforcement of a new collective agreement. The unions and management agreed to meet again immediately following the expiration of the legally prescribed deadline for response to or the review of the proposed new collective agreement, and to attempt to reach an agreement on the signing of the new collective agreement as soon as possible.