A majority of the small shareholders voted against, doubting the viability of the project and rejecting the management's claims that the existing terminal is cramped and that the number of passengers will increase substantially in the coming years.

The vote was marked by plans to privatise the operator, which already led to a decision being postponed in June, and by the inability of the state as majority owner to exercise its voting right.

The state, holding a 64.85% stake together with the KAD and SOD funds but stripped of voting rights because it exceeds the takeover threshold, asked the market regulator to be allowed to vote this time but its request was rejected on Friday.

Aerodrom Ljubljana CEO Zmago Skobir pointed out for the STA today that the state has still not made it completely clear whether it plans to push ahead with the operator's privatisation.

The state is said to be divided on the investment, with Infrastructure Minister Samo Omerzel arguing in favour, while the SOD fund, presently in charge of state-owned assets, is believed to have reservations.

Aerodrom Ljubljana would finance 55.3% of the investment with its own funds, 23.5% would come in the form of EU subsidies that have already been approved, and the remaining 21.2% in the form of bank loans.

Commenting on today's vote, Skobir said that the shareholders "probably assessed in the light of the sale that it makes no sense to invest". "Our projections and studies, available to everyone, showed this is not the case."

Asked about further steps, he said that it will now be necessary to wait for privatisation and instructions in this respect. He said the management would try to push for an owner "who will continue with a similar strategy, including boosting sales".

Minister Omerzel responded to the developments by saying that "it is unacceptable that the majority owner cannot exercise their voting rights". He feels a reflection is needed "in this country" about such situations.

Meanwhile, the shareholders' meeting also voted overwhelmingly in favour of SOD's proposal for an audit of the company's operations in the first half of the year and a due diligence.

These would serve as a basis for talks with prospective investors after Aerodrom Ljubljana was included on the list of 15 companies slated for privatisation.

Aerodrom Ljubljana reported a 1.9% year-on-year increase in revenues in the first half of the year to EUR 14.84m, while net profit increased by 50.3% to EUR 2.98m. Passenger figures for the first eight months rose by 7% year-on-year to 860,000.