B&H Airlines is likely to officially suspend all operations today, February 18, after the Federation government of Bosnia and Herzegovina failed to secure promised funds to bail out its cash-strapped carrier. The European Organisation for the Safety of Air Navigation (Eurocontrol), which regulates air traffic across the continent, will forbid the Bosnian airline to fly after February 18 due to outstanding debt amounting to 92.000 euros, Elvis Žiga, the head of B&H Airlines’ employee union, says. In a statement to EX-YU Aviation News, Eurocontrol said it does not wish to comment on individual cases involving airlines. The outgoing Federation government, which two weeks ago approved a bailout package for B&H, says it cannot provide any funds for the airline until a new budget is adopted, which is unlikely to occur prior to Eurocontrol’s deadline and the formation of a new cabinet, expected in March. Furthermore, last Friday, Zurich Airport urged B&H to settle its 35.000 euro debt promptly, otherwise it will no longer allow the airline to operate flights to the Swiss city. Besides Zurich, B&H only flies to Belgrade and Copenhagen.
B&H Airlines has temporarily suspended the sale of its Belgrade flights while its services to Copenhagen are still bookable, although its flight to the Danish capital yesterday was cancelled. The service to Zurich is still scheduled to depart Sarajevo tomorrow morning and tickets are on sale. Macedonia’s former national carrier MAT faced similar problems with Eurocontrol prior to its demise in 2009, as it was banned from flying over several European countries due to unsettled debts. B&H Airlines was initially founded as Air Bosna in 1994, but declared bankruptcy in 2003. Two years later the Federation government revived the carrier and renamed it B&H Airlines. Turkish Airlines purchased a 49% stake in the carrier in 2008 with a promise to expand its fleet and operations. However, in 2012, it withdrew from B&H’s ownership structure, citing disagreement sand problems with the government. Last month, the President of B&H Airlines’ Supervisory Board, Goran Jovanović, said that the airline must continue flying because any stoppage would lead to bankruptcy. “We cannot stop flying until this situation is resolved, because we would immediately loose our license”, Mr. Jovanović said at the time.
B&H Airlines has outstanding debt towards HETA and the Hypo Alpe Adria Bank for the financial lease of its two ATR 72 aircraft, one of which has been grounded in Germany since the carrier is unable to pay for its maintenance. Furthermore, the airline owes money to Sarajevo Airport, several local and international suppliers, as well as its staff which haven’t been paid in months. The management of Sarajevo Airport met with representatives from B&H last week to discuss ways in which to reprogram the airline’s debts and unblock its accounts. The carrier’s acting CEO, Amir Jažić, painted a bleak prospect of the carrier’s chances for survival in late January, stating he fears it’s “too late to save the company”. B&H counts some 100 employees.
(Source: exyuaviation)
