BALKAN AIRLINES NEED TO MERGE TO SURVIVE, SAY ANALYSTS

Dino D'Amore
By Dino D'Amore December 3, 2010 22:02

BALKAN AIRLINES NEED TO MERGE TO SURVIVE, SAY ANALYSTS

Croatian Airlines, Serbia’s JAT Airways, Slovenian Adria Airways, Montenegro Airlines and Bosnia-Herzegovina’s BH Airlines are all running a loss. Together they posted a $92 million loss in 2009, and $117 million in 2008.

Anaylsts have suggested one way for the small airlines that emerged from the break up of Yugoslavia to survive would be to form partnerships and find investors.

“Nations with just a few million people can hardly expect to sustain a national carrier,” said Marko Lukovic, aviation analyst at Frost & Sullivan. “In the long term, I don’t see how those little companies created in southeastern Europe can survive.”

Bosnian BH Airlines is the only airline to have attracted foreign investment, when Turkish Airlines bought 49% of the airline in late 2008 and invested €10 million euros.

THY is also mulling a takeover of JAT Airways, while Montenegro has tendered a 30% percent stake of its national airline. Slovenia’s Adria Airways is also looking for a strategic partner to help it survive.

Dino D'Amore
By Dino D'Amore December 3, 2010 22:02
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