B&H plans to return to the sky tonight
The national carrier of Bosnia and Herzegovina plans to resume flights tonight by operating its service to Zurich after cancelling flights to Copenhagen and Istanbul today. The cancellations come as B&H’s bank accounts have been frozen due to mounting debt and unpaid loans. The airline’s only ATR72 in Sarajevo has been on the ground for more than a week, the only exception being a flight to Istanbul operated on Wednesday. B&H’s other ATR is in Germany undergoing maintenance. The Federation government of Bosnia and Herzegovina is determined to save the carrier but has warned it faces bankruptcy if its issues with Hypo Alpe Adria Bank are not resolved soon.
Enver Bijedić, the Federation Minister for Transport and Communications, explains that flights have been suspended due to debt to the amount of 3.5 million euros owed to Hypo Bank. Furthermore, the airline owes 2.8 million euros on a leasing loan for two ATR72 aircraft and a 767.000 euro rehabilitation loan. Mr. Bijedić said B&H Airlines had deposited collateral of roughly the same amount with the bank. Under a 2005 contract with Hypo Alpe Adria, B&H Airlines bought two ATR72s worth a total of fourteen million euros. “The company has paid back 11.4 million under the leasing loan, while these two planes are today worth 6.8 million euros", Mr. Bijedić said. He blamed the airline’s previous management for its current financial problems.
B&H Airlines has offered to settle its issues with the bank by selling the two aircraft, topped with a further half a million euros from the government. B&H Airlines receives an annual government subsidy of 1.3 million euros, as well as proceeds from departure taxes at Sarajevo Airport.
It's better 2, like you can get profit with 1 cheap ass slow ATR72, better keep it grounded and keep do some damage controle on the company.
ReplyDeleteBoth customers affected were transfer to Croatia or Jat.
ReplyDeleteActually ExYu, all ticketing systems and involved companies show todays flight to Zurich as operating.. Maybe change the title?
ReplyDeleteService to Istanbul set to resume tomorrow..
Fridays flight to Istanbul will remain cancelled until the second ATR returns, because of a scheduling conflict with Copenhagen/Zurich..
Like we mentioned before, BH needs a stable partner such as JU or OU in order to survive. It must not rely on being so independent.
ReplyDeleteJU or OU are farrrrrr away from being stable!!!!!
DeleteAnonymousMarch 8, 2013 at 12:18 PM
ReplyDeleteQUICK ONE TONIGHT BBUT YOU ACHIEVED THE 'THOUGHTLESS STATEMENT OF THE ARTICLE AWARD'
Im prob the biggest Jat fan and hope to be in the cockpit in the near future but stable hmmmm Far from it for both
I am wondering, how were they thinking to lease another jet airplane for the announced AMS service when they can't even pay the loan and fees for the existing 2 airplanes in the fleet. B&H should really join either OU or JU and have them take over their operations. Of course, OU and JU have their own problems too, but at least they have more experience and much larger network that can serve SJJ pretty well.
ReplyDeletePozdrav
Am I reading this right? They are thinking of selling their two planes? Maybe that other commenter the other day was right, they can just profit off of the tax subsidy and have no flights.
ReplyDeleteI have flown this airline several times. The in-flight service was great and the flights were on-time, but I am not sure I am comfortable booking tickets with possible (maybe probable) cancellations and uncertainty about whether I will get where I am trying to go.
In reality, what would they do if they sold the two planes?
Unfortunately B&H is in a downward spiral, given the constant flight cancellations. There is no doubt that the Federation of BiH will continue to support a flag carrier (call it whatever you want). The Federation government sees the airline as a vital interest to the Bosniak nation.
ReplyDeleteJU or OU involvement in B&H Airlines is an unneeded distraction - both have their own issues.
OU recorded record debt last year despite cost cutting measures. Fleet reduction is planned. Accession in EU will possibly create new challenges for OU, due to limits on transfer payments from the government. No resources to allocate to the BiH cause.
JU suffers from a fleet shortage due to the depleted supply of spare parts for it's 733s. Introduction of new leased planes will help the airline substantially. JU should focus on developing a market in Nis and Kraljevo in the medium-term rather than Sarajevo.
B&h airlines are actually planning of getting rid of the two A.t.r 72 and replacing it with a single new Airbus A319!
ReplyDeleteOn a different subject: Croatia Airlines have today confirmed they will be keeping flight's from Zagreb-London Gatwick on Mondays and Thursdays in their summer schedule!
ReplyDeleteWhere did you get this Info?
ReplyDeleteOn their facebook page, and there is a link as well to their website.
DeleteI told you that ZAG-LGW will stay with at least one flight because of plan to move all LHR to LGW next year so they need that for save "grandfathers’ rights".
DeleteTue: B&H Airline to resume flights
ReplyDeleteWed: B&H Airlines grounded
Fri: B&H Airline to resume flights tonight
Frequency of articles about B&H airlines is higher than frequency of their flights.
I'm sure in the history of B&H Airlines, more of their passengers have actually been rebooked on another airline then have flown with their aircraft.
DeleteActually the Monday and Thursday are the cancelled flight's. Its the other Zagreb flight's on a Sunday that are being kept from Gatwick along with Split on a Monday and Friday!
ReplyDeleteunfortunately, 2mm people cannot sustain an airline. it's simply unviable - even in a very rich country
ReplyDeleteAre you kidding? Bosnia is a stone throw from large European hubs with 2+ Million people yet the carrier has 2 props. Bhutan has 800,000 people witg a fleet of 2 A319's and and ATR-42 so what's your point?
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