Q: There is no doubt that Balkan Airlines is a leader in Bulgaria. Could you give us a brief historical background of your company?
A: Balkan Airlines was set up 51 years ago. It started local flights with in Bulgaria. At the beginning there was just one line with German planes " Junkers". And then gradually it developed seven local destinations and three in the Balkan region. During the
60’s the tourism flourished in Bulgaria. The plane park was increased. New four-engine planes were taken that allowed Balkan Airlines to make international and transatlantic flights. During the 70’s we started on the market jet liners TU-154. At the beginning of 1990 the first European and US planes came into the country. Unfortunately during the last couples of years Balkan had to reduce its air fleet. At the moment there 14 planes of the type of TU-154, 6 planes AN-24, 3 planes AN-12 and 2 IL-18 planes. This is our own air fleet. We have also two Boings-767 which we lease from Air France and three Boeing 737 leased from Anset. Between 1992 and 1997 we had also 4 air-bus planes which we leased from the leasing company Orix. But the economic recession in our country made the give them back. At the moment Balkan conducts flights to 41 countries. We have 44 regular lines and 48 representative offices. The company employs 3700 including the ones that work abroad. The annual turnover is about 199 million $.
Q: Balkan Airlines is in very bad financial condition. Could you tell us what are you main guide lines of your strategy concerning that matter?
A: At the moment there is privatisation procedure going on in Balkan. There is a financial agent and financial intermediary, a German company – TOB. So they have attracted an English company as an agent – Speed Wing, which took part in the privatisation of British Airways. Yesterday negotiation with three of the potential buyers has been started. The buyers are mostly European but on the list there was a big American company in which Air company has share as well. But unfortunately, we do not know why, this company decided not to bit. By the end of the next month it will be clear if one of these potential buyers will be determined as owner. A negotiation between the three of them will take place and after that the decision will come – who will be the owner or the owners of Balkan Airlines. So the term of my managing function in the company is too limited for me to present a strategy. May be after the privatisation I won’t be here. But I am not disturbed by this because I have a task to perform. And this task is that my company in which I have been working for 32 years to keep on working well until the new owners come. So in this limited term, I don’t know, may be two or three moths, the aim is to achieve some results as far as the stabilisation of the company goes; so that the company will be preserved and losses to be reduced; so that the new owner takes it in good condition .
Q: Balkan Airlines currently has only three internal destinations in Bulgaria
– Sofia, Varna and Burgas. It seems that those flights , destinations are not profitable. What could be done to make them profitable?
A: We have two destinations – Sofia-Varna and
Sofia-Burgas. But they are profitable. For the first
6 months of this year we have 200 000 $ profit.
But if see the situation from a point of view of
the whole year, this internal destinations serve
to improve the communications between the cities;
they are not really profitable or of any big financial
interest. The planes that serve these lines are
too old and they need big maintenance and spare
parts, they spend too much fuel. That’s why
they are not competitive compare to other modern
planes which could perform this internal destinations.
The real price of ticket for internal flight is
higher than the average income of the Bulgarians.
A company could make a good profit if it relies
on local passenger but not transit ones. So the
economic crises which the average Bulgarian faces
reflects on the company as well. |
Q: There is no doubt the Balkan Airlines needs new investments. In which sector of your activities do you need them?
A: I think, the Balkan Airline needs investments only for creating its own plane park. This is the only problem. For example, our planes TUPOLEV are more than 20 years old. Besides they have been built during a period when a tone of jet fuel cost the state 10 $. A plane like that compare to a Boeing, consumes three times more fuel per hour, with the same seats capacity. The last models of TUPOLEV don’t pollute the environment and don’t created high noise levels. There are two very important component in civil aviation – noise and burned gases emission. So we have just seven planes that correspond these requirements. Besides our old planes that we are using on leasing are not that profitable for the company because they are leased on an operative leasing via intermediaries. So this stops Balkan from making good profit. So if we go back to your question, Balkan needs credits in order to buy new planes and later to pay the credit debts as the planes will be a guarantee for the payment.
Q: Could you tell us some more about your contacts with American Air companies?
A: During the visit of the former president of Balkan Airline a contact was made with this company that I mentioned, that wanted to take direct participation in the privatisation of Balkan; and one more contact with a company which wanted to take part in the privatisation by setting up a special MEBO.
Q: Balkan Airline flies to the USA. What are the destinations there?
A: New York – J. F. K. Air Port with a Boeing 767. The other long destinations are to Bang Kock, Johannesburg, Colombo and the Maltese.
Q: We know that you are a famous pilot. Are you still flying?
A: Yes, I still do – sometimes twice a week. Tonight I have flight to Lanaka, Cyprus and on Fright I am flying to Athens. I fly on TUPLEV-54 now, before I used air-bus 320.
Q: As a final issue, keepng in mind that you are reaching 2.5 million readers, what will be your final message to them?
A: If you don’t mind my message will be connected with my profession. We , the pilots, overcome without any stress all kinds of borders, time and countries. So my message to the regular readers from the business sphere from the USA is : Let us, the people from this generation, overcome these frontiers of hesitation and suspicion; let us fly like birds to each other and overcome the borders, so we can be able to meet together the challenges of life in the next millennium.
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BULGARIA, 
