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Sarajevo Times > Blog > BH TOURISM > Why a Concession if Airport has positive Business Results?
BH TOURISM

Why a Concession if Airport has positive Business Results?

Published September 15, 2023
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One of the suggestions mentioned in the letter of the American ambassador Michael Murphy and the head of the Delegation of the European Union (EU) in Bosnia and Herzegovina (BiH), Johann Sattler, referred to the recommendation of concessions for airports in BiH. While this attitude is justified for some, it is not for others because not all airports are in the same position. Especially Sarajevo, which records a record number of passengers and multimillion revenues.

The letter from the United States (U.S.) and EU ambassadors in BiH addressed to the leadership of the federal government shook BiH political ground. It was openly stated that the reform of public companies is a priority and that concessions for the operation of the airport cannot be postponed any longer. State Minister of Communications and Transport Edin Forto does not see a problem in this. Airports should be put under management, which would contribute to economic prosperity, which would be influenced by an increase in passengers.

“That is a matter for the owners, the BiH level cannot do that. They can only comment that the owners need to think carefully about how the airports can survive in this new environment, and the new environment is that almost all the main airports in the region are under concession,” said Forto.

Not all airports are in an unenviable position. This confirms the fact that the operations of Sarajevo Airport are better and better. In addition to breaking records, it has also become a regional point for travelers from the Middle East, who are both tourists and property owners in BiH.

“Sarajevo airport has no need to go into concession because it shows good business results. But let’s take Mostar Airport as an example. The question arises whether that airport exists because of some national composition, because of the employment of 5-10-15 people, how many passengers are there at all”, said Denis Zvizdic, deputy chairman of the BiH House of Representatives (People and Justice, Narod i Pravda NiP).

“Look at how well Split, Dubrovnik, Zadar, Sarajevo are doing. These are one of the best airports in the region. The question arises – how then does the state manage airports badly”, adds Alen Scuric, aviation analyst.

Nevertheless, the Federal Government will decide on airport capacities and concessions. There will also be a review in the Parliament, from which the opposition does not look favorably on the recommendations, considering them humiliating.

“Let’s also talk about coal concessions that have not been paid for years, maybe it’s more interesting. Or is it more interesting to talk about decarbonization and the energy stability of BiH in the period ahead. It is good that they are helping our authorities, to draw their attention to some current topics, but I think it is going too far,” told Nermin Mandra, SDA deputy in the BiH House of Representatives.

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