Balkan Airlines forms joint venture with IAI for aircraft maintenance

Published: 2/21/2000

Balkan Airlines has announced that, as a result of a joint venture with Israeli Aircraft Industries, it has received a licence to service the Boeing-737. According to Andrew Gray, Managing Director of Balkan Airlines, this is the only licence granted in the Balkans. The new 50:50 venture, Balkan Technic, will apply for the European GAI-145 certificate to undertake business for third parties and hopes to receive the certificate by the end of 2000. Recently, the 75% Israeli owned airline has dramatically reduced its icket prices to destinations in Europe and the Middle East, slashing $100 off tickets to European destinations and substantially undercutting western European carriers. The airline has also said that it will restore its flights to New York in April. It concedes that domestic ticket prices are set to rise in order to compensate for the increase in fuel prices. Zeevi Holdings, which acquired the airline in July 1999, has also announced that it intends to start settling the airline"s debt of $120m, as part of the acquisition agreement. Deputy Chairman, Barouh Chakarov, insisted that documented proof of the debts would be required and that debts would not be paid without invoices.

Article ID: 1456