Bosnia Federation Vows to Rescue Grounded Airline

Enver Bijedic, Communications Minister in Bosnia's Federation entity, said on March 5 that authorities were working to resolve the financial problems of the airline, which owes around 3.5 million euro to the Hypo Alpe Adria Bank.

Bijedic said the Ministry offered the bank a deal that will bring it more money than it lent the company eight years ago.

“We paid them already 15 million dollars and will return two aircrafts worth 10 million, so that's 25 million,” Bijedic said. “They invested 18 million and will earn seven million.”

Bijedic blamed the old management of the company for its poor financial situation, which brought BH Airlines into a position where it could not repay its debts and had to cancel all its flights.

The majority owner of BH Airlines is the Federation government, which holds 51 per cent of the shares. The rest is owned by the Turkish Airlines, but it withdrew from the company a few months ago.

Hypo Alpe Adria said liquidation of the company was not the bank's goal or in its interest and it was treating its client correctly and responsibly.