B&H Airlines privatisationTurkish Airlines confirms bid

It came as a surprise when in late August it was revealed that the much publicised bid by Turkish Airlines for Bosnia and Herzegovina’s national airline – B&H Airlines was not. The Bosnian Privatisation Agency only received a joint bid from the Islamic Bank of Reconstruction and Development and Royal Jordanian Airlines, the national airline of Jordan. However the agency did announce that any offer which arrives by mail within the next 2 days would be accepted as it might have travelled for a longer time. There was one bid sent by mail and it was from Turkish Airlines, already a favourite for the purchase. Tukey and Bosnia and Herzegovina have extremely close economic and diplomatic ties for more than a decade.

There have been documentation problems with the bid from the Islamic Bank and it is now being considered not allow the bid to be accepted as a result. The Bosnian Privatisation Agency is now determining who has sent in the best offer and this should be revealed on September 29 after which formal talks between the winning bidding company and the Bosnian government will commence with the deal to be finalised in late October. The new owner which will control 49% of the airline will be required to keep the name of the company, its seat in Sarajevo and purchase at least one aircraft with a minimum 100 seat capacity.