The Slovenia Times

Ljubljana Airport Operator Could Be Sold in Summer 2014

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Skobir could not comment on the details of the privatisation procedure, saying only that most potential investors were from Europe, however there were also some from other parts of the world.

Among them are "airport operators, pension and other funds looking for an opportunity for long-term return on investment, and investment groups specialising in restructuring companies for further sale".

He said that Slovenia was not the only country to sell an airport operator although most such cases involve licensing. "We are also selling infrastructure and we still have to sort out the ownership of land and the infrastructure...I expect...this to be resolved before a call for bids is issued."

Skobir hopes that the new owner will recognise that Ljubljana airport could become a gateway for the region. He pointed out, however, that the airport infrastructure is rather outdated. Skobir's management drafted a plan to construct a new passenger terminal, which was voted down by the company's owners.

When asked what would happen if Adria Airways, Slovenia's flag carrier, is ordered by the European Commission to return millions in state funds it received in the past, Skobir said such a scenario would be a major blow for the airport.

"A flag carrier is above all a big advantage for an airport operator but at the same time it is also an obstacle. Adria is a member of the Star Alliance airline association...and is the only member of the alliance flying to and from Ljubljana."

"Therefore we cannot attract other members of the association like for instance Austrian Airways or Swissair." So if the worst scenario happens with Adria Airways other members would start flying to Slovenia, Skobir said.

"Maybe we would see a decline in traffic for a year or a year and a half but this could be compensated for and in terms of finance this could be even more sustainable in the medium term."

Aerodrom Ljubljana has seen an upturn in 2013 after three crisis years. Skobir said the drop in passengers was caused by restructuring at Adria Airways, which reduced the number of flights by 30%.

The number of passengers has increased again as foreign airlines started flying to Ljubljana and Adria Airways increased the frequency of flights again, he said.

Skobir expects the company will see an 8% increase in the number of passengers in 2013 and a 4% increase in cargo transport. In 2014 the company is likely to see a 7% increase in passengers and a 2-4% increase in cargo.

It will however take a few more years until the number of passengers reaches the pre-crisis level, said Skobir. The highest annual number of passengers was recorded in 2008, when Slovenia held the rotating presidency of the EU and nearly 1.7m people travelled through Ljubljana airport.

The airport offers links to 23 destinations, however "Spain, Italy, Scandinavia and northern Germany" remain grey areas.

Skobir said the operator was investing a lot of efforts into attracting new carriers. "We are in the final stage of talks with Wizzair and Easyjet on launching routes to northern Germany and maybe Scandinavia towards the end of next year."

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