Facing bankruptcy, BH Airlines has been grounded due to an outstanding bank debt. The Bosnian arm of Austria's Hypo Alpe Adria Bank has frozen the airline’s bank account over claims of an unpaid 5.5 million marka leasing loan for two ATR 72 aircraft from a 2005 contract with Hypo Alpe Adria's leasing arm as well as a 1.5 million marka rehabilitation loan.
The bank confirmed the action in a statement: "We did not rush with this decision and the blocking of accounts was the last option… The bankruptcy of BH Airlines is not in our interest”.
Backed by a $550,000 loan from the Bosnian government, the airline has offered the bank a new deal to pay off the debt but if that is not accepted the airline will be declared bankrupt.
Goran Jovanovic, president of BH Airlines' supervisory board, said he was hopeful the matter could be resolved and flights resumed.
BH Airlines grounded
