ZABA, Podravka, Adris support growth of Croatia’s share indices
Croatia's general govt debt up 4.1% y/y in Aug
Croatia's gross foreign debt up 21% y/y in Aug
Croatia's consumer confidence improves in Nov
Romanian stock indices rise further, BVB leads gainers
Oct 02, 2018 18:46 EEST
CHISINAU (Moldova), October 2 (SeeNews) – Romania's Civil Aviation Group has bought the indebted flag carrier of neighbouring Moldova for 1.2 billion Moldovan lei ($70.5 million/61 million euro), Moldova's Public Property Agency (APP) said on Tuesday.
Out of the 1.2 billion lei, some 50 million lei was transferred into Moldova's state budget, while the rest represents Air Moldova's debt which the buyer has committed to repay, APP said in a press release.
You can subscribe to our M&A newsletter here
Civil Aviation Group comprises Romanian low-cost carrier Blue Air and two individual associates, who are Moldovan citizens. One of them has a 20-year experience in aviation and is the co-owner of Georgian air carrier AMS Airlines Air Charter, while the other is a financial expert, president of a consulting company in the United States, according to the press release.
Civil Aviation Group committed to keep and develop Air Moldova's status as a national air carrier. The privatization of the state-run company was determined by the need to safeguard the airline and avoid its bankruptcy, APP said.
According to the development strategy plan for Air Moldova submitted by the buyer, the airline will launch seven new routes by the end of 2019 and four new routes in 2020.
In 2021, the company aims to start operating long-haul flights to the US, Canada and China, as well as medium-haul flights. In addition, it will increase the flight frequency on a number of existing destinations. These activities will be based on the passenger traffic between the CIS and European countries, thus transforming Moldova's Chisinau Airport into an international aviation hub, according to the development plan.
Also, by 2021 the fleet will comprise 14 aircraft, mainly Airbus A320, A319 and Embraer E-190.
According to the strategic development plan, Civil Aviation Group will expand aeronautical staff by 10 crews by 2021. Thus, the number of pilots and cabin crew will increase from 180 in 2018 to 380 employees in 2021. Moreover, the buyer has committed to invest 3.5 million euro ($4.03 million) in staff training by 2023.
Founded in 1983, Air Moldova operates flights to 33 destinations with eight aircraft - one A321, two A320, two A319 and three Embraer 190.
Blue Air, the only air carrier in Romania with 100% Romanian capital, started operations in December 2004. In 2013, it was taken over by Airline Management Solutions Company in a 30 million euro deal. The air carrier has bases in Romania, Italy, the United Kingdom and Cyprus and has a fleet of 30 aircraft. Blue Air operates flights to more than 80 destinations.
(1 euro=19.6124 Moldovan lei)
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options