B&H Airlines (Sarajevo) is to be closed down and liquidated following a decision by its sole shareholder, the government of Bosnia and Herzegovina. Bosnian prime minister Fadil Novalić told the local Vijesti newspaper that the carrier's financial crisis had become untenable with debts amounting to BAM35 million (USD17.7 million).
"The government of the Federation has BAM6.2 million marks to solve this problem, and the problem is BAM35 million. If anyone has BAM35 million marks to give to B&H Airlines, then it will fly. If not, it won't. Otherwise, if creditors renounce their claims on the airline, it will then continue to fly," he said.
One of the airline's largest creditors is HETA Asset Resolution d.o.o which owns the two ATR72-200s B&H Airlines uses. The firm is owed EUR7.5 million (USD8.2 million) in outstanding lease dues which Sarajevo earlier this year pledged to cover but didn't.
Employees have also complained that they have not been paid for the last four months while outstanding social security contributions have also not been made.
B&H Airlines suspended scheduled operations on June 11 with a charter contract with Italy's GTours for Pescara-Mostar flights also cancelled.
