B&H Airlines hit by financial trouble

B&H heading to Zagreb

The Ministry of Transport and Communications of Bosnia and Herzegovina confirmed that B&H Airlines has had problems paying off its loan for 2 ATR72 aircraft, which make the core of the airline’s fleet. The ATR72s arrived in 2005 thanks to a loan from the Hypo Alpe Adria Bank. The bank itself said that B&H has been tardy with its payments but said that the two airlines have excellent ties and that they are sure this problem will be solved soon. The CEO of B&H Airlines said that all payments had been made on time. The Ministry also confirmed that the Bosnian Government provides aid of up to 5 million Convertible Marks (approximately 2.5 million Euros) to B&H annually, as agreed with the airline’s other owner Turkish Airlines, the “Dnevni Avaz” newspaper reports. The airline reported it had lost 500.000 Euros due to a recent volcanic ash cloud from Iceland, which grounded airlines across Europe.

On the other hand, there is some good news. Despite initial problems, the Bosnian and Herzegovinian national carrier will commence flights from Sarajevo to Zagreb from May 21, 6 times per week (flight details can be found on the right hand side in the new route launches section). The airline will also operate charter flights from Tuzla to Hurghada in Egypt and Antalya in Turkey.