Three Companies Interested in Bulgaria Air Privatisation

18. Juli 2006, 00:00

So far, three bidders have lined up for a stake in state-run Bulgaria Air

So far, three bidders have lined up for a stake in state-run Bulgaria Air. The Austrian Airlines, Bulgarias Hemus Air and a U.S. company have already acquired tender documentation for Bulgarias flag carrier. Tender papers will be available for sale until Tuesday.

Bulgarias Transport Minister Petar Mutafchiev warned that a speedy privatisation is essential as otherwise the company will likely face bankruptcy. The airline is ailing because of inability to raise seat occupancy rate and offset surging oil prices.

Unofficially, Bulgaria has been BGN 15 million (EUR 7.69 million) in the red in January-June. The company, which succeeded insolvent flag carrier Balkan Airlines, was expected to break even during this period.

The coming Saturday, Bulgaria Air will add a Boeing 737 to its fleet of 8 planes.

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