Wednesday, September 26, 2012

Regional airline in B&H race

Another airline in the running for B&H shares

The Federation government of Bosnia and Herzegovina has revealed that an airline from the region is also vying for a stake in its national carrier B&H Airlines. Previously, it has been rumoured that Croatia Airlines was eyeing B&H, as was the case in 2008 when Turkish Airlines purchased the shares. However, such claims have so far been denied by both the government and the Croatian carrier. A total of two airlines are interested in the 49% stake. Buraq Air from Libya has already been revealed by the media as the other potential partner, with the Libyans ready to make big investments in developing B&H’s network and operations. In spite of this, the government has not confirmed nor denied Buraq’s interest.

The Bosnian government has said that it expects for the new partner to help B&H develop a cargo network as well. The government believes that transporting freight will make the airline more profitable. It should be noted that Buraq Air operates cargo flights with its fleet featuring two Ilyushin Il-76 freighters.

After Turkish Airlines relinquished its shares in B&H earlier this year, the government has been left to deal with debt amounting to 6.3 million euros. The losses were made over the three year partnership period. The government has reiterated that it won’t change its position when it comes to selling only 49% of the national carrier, meaning it will remain the majority share holder. In 2008, three bids were submitted for B&H. They included Turkish Airlines, Royal Jordanian Airlines and a consortium from Malaysia. The bid from Turkey was ranked the best, followed by the Jordanians with the Malaysian offer disqualified.

16 comments:

  1. This is just an other ; "when zagreb airport gets......"

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    1. Is it easier for you to say such a thing for those last few days before

      - Croatia enter EU
      - in same time will lost visa for USA
      - Zagreb will get new terminal

      ...what will launch Zagreb airport up!

      Delete
    2. Will lost ahhaha is that future perfrect tense?

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    3. hahahahah yeah, worse than google translate :D

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    4. Whatever, Croats will easier enter USA unlike Serbs, Bosniaks and the rest of people.

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    5. B1/B2 refusal rate for Serbia and Montenegro is below 20%, and I believe those 20% are the ones who would have just one one-way flight, for that matter. So, I don't really think VW for Croatia will have any tangible impact whatsoever on traffic between US and Croatia.

      US visas are easy and fast to get and last, in most cases, 10 years. They haven't been an obstacle for a serious traveller from any country of the region.

      EU membership is a different story, I do expect a surge of traffic due to that, but now, it is questionable how much growth can a developed tourist powerhouse such as Croatia gain. ZAG-BRU will definetely skyrocket, but apart from that, I am not sure we will see numbers we saw in BUD, OTP or SOF, especially because Croatia had already been "discovered", unlike Bulgaria or Romania.

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    6. "US visas are easy and fast to get and last, in most cases, 10 years. They haven't been an obstacle for a serious traveller from any country of the region.

      EU membership is a different story, I do expect a surge of traffic due to that, but now, it is questionable how much growth can a developed tourist powerhouse such as Croatia gain. ZAG-BRU will definitely skyrocket, but apart from that, I am not sure we will see numbers we saw in BUD, OTP or SOF, especially because Croatia had already been "discovered", unlike Bulgaria or Romania."

      Spot on, wouldn't have said it better myself. Brilliant, totally right about US visas (for a serious traveller), about ZAG-BRU, about Croatia being already "discovered", etc. - fully agree. The only thing (from my experience living in the Uk and watching "waves" of different immigrants each year : 2004 - Polish and Lithuanian (Hungarians, Latvians - were rare to be seen!), 2009 - crisis in Latvia (massive loss of jobs) and a wave of people coming to the UK looking for a job, since 2010 Latvians keep coming, 2011 – Hungarians and this year enormous number of Spanish people seeking work.... so my point is - traffic depends as well of how many Croatian citizens decide to leave Croatia and work/live somewhere else in EU.

      Alex London

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    7. Yes,and thats why i fear too much traffic to /from Croatia.
      We will loose people who emigrate and never come back,also a lot of people in Bosnia are Croatian citizen and will want to leave!
      But we need all of them at home.
      Who should do the work if we are old-
      will we have to give jobs to Asians as it is case in EU?
      I am strongly against racism but i think
      everybody should stick with his homeland.

      Delete
  2. I still don’t get how so many airlines could be interested in B&H?!? They couldn’t sell Spanair yet airlines are lining up for B&H with 2 planes, 3 destinations and government red tape. Still I hope they expand and get sold.

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  3. I am sure it is Montenegro Airlines... that is why they have purchased all those Embraer jets ROFL

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  4. @2nd Anonymous:

    It is all about potential. BiH has 4m people and around 700k pax / year. SJJ catchment area is probably around 2m people and yet it has less than 600k pax. Growth opportunities are enormous. Ticket prices are high due to de-facto monopoly by Star Alliance and most importantly due to regulatory skewing every other airline pays BH Airlines 10€ for every passenger they land at SJJ.

    On the other hand Spain is mature market with lots of competition, cheap prices and there are no weird regulations.


    Otherwise regional airline wouldn't be so good for passengers based in SJJ as it is likely that BH Airlines would be used for feeder traffic into regional hub. OU and JP are especially bad choices as it would be natural for them to use LJU and ZAG for transfers for all European traffic.

    Ideally network carrier which is part of One World or SkyTeam with main hub far away would be ideal.

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    1. WIth all due respect, this goes to all ex-yu carriers and cities, and especially applies to BiH and SJJ: too small/too insignificant airline and city airport.
      Other European carriers will use each destination to directly link Sarajevo to their own hub once they get green light and /or subventions from BiH governement. Desperate and broke, the government will probably ease off and allow the wild entrance of LCC just to get things going. Forget about developing a Bosnian hub, or partnering up with some other carrier.

      Realistically, if there are going to be any regional consolidation, it will happen (the battle is still on) between Jat Airways, Croatia Airlines, Belgrade and Zagreb airport. LDZA has the largest and most stable (and prospective) carrier due to the country's potential, while Belgrade has the most natural city destination potential.

      Everything else in ex yu is a serious joke.

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  5. Germans will now allow Ou to be anything bigger than à puppet airline.

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    1. I agree OU is far beyond its potential, I know it's small, regional, feeder airline. I could agree Germans dominate and control it and you have right to call it puppet airline.

      On the other hand, JU is smaller, transports less passengers, have older planes and much worse product in general, and in particular.

      And all these, with the name, fleet, infrastructure, organization and tradition inherited from the former country.

      So, I would like to know who is to be blamed for that? Germans as well? Albanians? Mujahedins? Vatican? Whose puppet JU is? Or maybie JU is the one buying JA? Enlighten me, please...

      Delete
    2. I agree OU is far beyond its potential, I know it's small, regional, feeder airline. I could agree Germans dominate and control it and you have right to call it puppet airline.

      On the other hand, JU is smaller, transports less passengers, have older planes and much worse product in general, and in particular.

      And all these, with the name, fleet, infrastructure, organization and tradition inherited from the former country.

      So, I would like to know who is to be blamed for that? Germans as well? Albanians? Mujahedins? Vatican? Whose puppet JU is? Or maybie JU is the one buying JA? Enlighten me, please...

      Delete
  6. I am happy with Jat. On top of that, I would never buy Airbus. Let Europeans suffer. Love my american brothers.

    ReplyDelete

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