Govt Oks Bulgaria Air Sale Contract

Govt Oks Bulgaria Air Sale Contract

Business: 21 December 2006, Thursday.Bulgaria's government approved the draft privatisation contract for the acquisition of a 99. 99% stake in flag carrier Bulgaria Air.The move paves the way for the final signing of the deal with Balkan Hemus group, which was selected a winner in the tender. The Bulgaria-based company, part of airline company Hemus Air, offered to buy the flag carrier for BGN 13 M (about EUR 6.6 M). It vowed to invest EUR 82.1 M in it and create about 500 new jobs by the end of the fifth year after the sale.The buyer plans to open 36 new destinations and 164 new frequencies for serving regular air routes. Balkan Hemus Groups outbid the Italians Air One in the tender for the flag carrier.The state will retain its so-called "golden share" allowing it to veto strategic decisions regarding the flag carrier.