B&H sell out in 2011

Government to sell B&H shares

After Source : EXYU aviation news : http://exyuaviation.blogspot.com exclusively revealed in November that Turkish Airlines was planning a full takeover of the Bosnian national carrier next year, the Bosnian Privatisation Agency announced on Friday that government owned shares in B&H Airlines will be sold in 2011.

B&H Airlines is featured on a long list of companies that will be fully privatised in the coming year. 51% of the Bosnian carrier is owned by the Government of Bosnia and Herzegovina and 49% by Turkish Airlines. According to sources close to the airline, this ownership structure has proved ineffective with many decisions being delayed as both parties have to agree on a set decision. Furthermore, Turkish Airlines has been criticised for not doing enough with B&H, while a possible majority stake in the company would give the Turks more room for action.

The sell out decision might come under scrutiny sometime in the future since Bosnia and Herzegovina aspires to become a member of the European Union. Current European Union regulation states that a flag carrier cannot be in majority ownership of another airline or business that comes from a country not part of the EU.

Do you think it’s a good idea to fully privatise B&H Airlines? Should the government keep some of its shares in the carrier? Post a comment with your thoughts.