Buraq Air tipped for B&H takeover

Libya’s Buraq Air eyes B&H

The Libyan based Buraq Air is the likeliest candidate to take over a 49% stake in B&H Airlines, local media report. The airline is said to be prepared to heavily invest into the Bosnian carrier, and has presented its plans to the Federation government. The government is willing to sell the share package but not at any cost. A contract will be drafted specifying the exact roles of each part owner so as to avoid a repeat of the failed Turkish Airlines partnership. Official talks with Buraq Air are set to begin next week.

The Libyan airline is based in the capital Tripoli. With nine aircraft it operates flights to seven cities. Its destination network use to be significantly larger prior to the Libyan civil war in 2011 with Sarajevo being one of its destinations. The strength of a potential partnership with Buraq would likely be that it wouldn’t use B&H as a feeder airline, rather, it would use it as its window to Europe.

Meanwhile, the government has outlined a range of issues it had with Turkish Airlines since 2008, when it took over a 49% stake in the carrier, until its withdrawal from the arrangement earlier this year. The government blames the Turks for turning B&H into a feeder airline. Furthermore, Turkish managed B&H and made decisions without consulting its majority share holder - the government. It also accuses Turkish Airlines of registering B&H aircraft (the Airbus A319 and Boeing 737-400) in Turkey itself, meaning taxes were payed to the Turkish government, instead of staying in the country. Finally, the government holds Turkish Airlines responsible for failing to develop a domestic network in Bosnia and Herzegovina and leaving B&H with more debt than it had prior to the partnership. B&H Airlines has 120 employees, though experts warn it should have only half of that.