The Air Traffic Controllers European Unions Coordination (ATCEUC), representing over 14.000 air traffic controllers across Europe has written to Eurocontrol and the Belgian government, urging them to unblock funds for BHANSA. “We address you with strong concern regarding the legal and financial risks currently threatening BHANSA and, by extension, the stability of air navigation services across Europe. The enforcement order issued to Eurocontrol on March 21, 2025, has precipitated an immediate financial crisis for BHANSA, mandating the complete suspension of all route charge payments destined for Bosnia and Herzegovina’s air navigation services. Given that these payments constitute 90% of BHANSA’s funding, the agency is now at the brink of operational collapse”, the letter reads.
Bosnia and Herzegovina faces Risk of Airport and Airspace Closure
Bosnia and Herzegovina’s aviation sector is facing a significant challenge after the European Organisation for the Safety of Air Navigation, commonly known as Eurocontrol, froze all payments to Bosnia and Herzegovina’s Air Navigation Services Agency (BHANSA), following a court-ordered enforcement action. This decision stems from an arbitration ruling in favour of the Slovenian company Viadukt, which had sued Bosnia and Herzegovina over the unilateral termination of a concession agreement related to a hydropower project on the Vrbas River. The arbitration tribunal awarded Viadukt approximately 56 million euros, with the amount increasing due to accruing interest.
Although BHANSA was not a party to the dispute, the enforcement action has led to the freezing of its funds by Eurocontrol for the provision of air services across Bosnia and Herzegovina. The agency has warned it is now facing a dire state and has been forced to cut employee wages. The situation has sparked political debate within Bosnia and Herzegovina. The country’s Fiscal Council is considering a plan to settle the debt using state funds, but this proposal faces strong opposition from the Prime Minister of the Federation of Bosnia and Herzegovina, who has indicated a willingness to veto the plan. The Prime Minister argues that the debt, originating from the Republika Srpska entity, should not be covered by federal funds.
The union representing air traffic controllers in Bosnia and Herzegovina, said, “The Eurocontrol blockade has created a scenario in which BHANSA may soon be unable to cover even basic operating costs such as fuel, maintenance, utilities and the servicing of critical equipment. Air traffic controllers hold one of the most demanding and high-responsibility professions in society – where even a single mistake can have tragic consequences. Today, they are working under a cloud of uncertainty, stress, and concern for their livelihoods, which directly affects their focus and overall flight safety”.
The ATCEUC has warned that without urgent intervention, the situation will lead to the total shutdown of air traffic control services in Bosnian airspace, closure of Sarajevo, Banja Luka, Mostar and Tuzla airports, disruption to military, humanitarian and medical flights and mass layoffs of highly skilled personnel. Failure to pay Viadukt could further lead to the seizure of Central Bank properties in Banja Luka, Mostar and Brčko District, as well as further disruptions to BHANSA’s funding from Eurocontrol, Ex Yu Aviation writes.
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