Bosnia’s BH Airlines faces bankruptcy procedure

Bosnia’s BH Airlines faces bankruptcy procedure
By bne IntelliNews March 25, 2016

Bosnia & Herzegovina's Sarajevo International Airport has filed a proposal with a Sarajevo court to launch bankruptcy proceedings against state-owned air carrier BH Airlines over financial claims of BAM6.5mn (€3.3mn).

BH Airlines, valued at BAM18mn, has total debts of over BAM40mn. The company has been facing financial difficulties for the last decade.

After considering the legal requirements, Sarajevo airport has concluded that the conditions have been met to ask the court to initiate bankruptcy proceedings against BH Airlines, news agency Akta reported on March 25, quoting sources from the Sarajevo airport.

There will be no protests. BH Airlines employs only 45 people, which received their last salary payments for October, while social and health contributions have not been paid for four years, the head of BH Airlines' trade union Elvis Ziga was quoted as saying.

The airline was previously bailed out by the Bosnian government in early 2015, when Sarajevo extended a short-term package to allow the carrier to continue operating scheduled flights and unblock bank accounts that had been frozen by the local arm of Hypo Alpe-Adria-Bank.

BH Airlines’ largest debt is the BAM25.5mn it owes to HETA company, for leasing two aircraft.

 

Related Articles

Freedom House keeps “partly free” status for Macedonia despite new government’s efforts

Macedonia was rated only “partly free” in the latest report from international watchdog Freedom House, the same almost all of the six Western Balkan countries, despite efforts by the ... more

World Bank loan aims to revitalise Republika Srpska's little-used railways

The World Bank said it is lending $51.3mn to Bosnia & Herzegovina’s smaller entity, Republika Srpska, ... more

Bosnia’s constitutional court allows policemen to keep their beards

The constitutional court of Bosnia & Herzegovina ruled on November 30 that a regulation obliging border policemen to shave their beards violates their ... more

Dismiss