Balkan Bulgarian Airlines
Encyclopedia
Balkan Airlines was Bulgaria
's government-owned flag carrier
between 1947 and 2002. During the 1970s the airliner became a significant Europe
an carrier. The company encountered financial instability following the fall of communism in Eastern Europe
. Despite managing to continue operations, following the turn of the millennium and a controversial privatisation it declared bankruptcy in 2002. A newly formed successor, Bulgaria Air
, became the Bulgarian flag carrier in 2003.
) in 1927, yet the country was too poor to afford investing in modern air transport until after World War II
. In 1946, the Ministry of Transport and Communications formed an Administration of Air Communications (Дирекция на въздушните съобщения [ДВС] or Direkcia na vazdushnite saobshtenia [DVS]). Since Bulgaria was regarded as a combatant on the defeated Axis side, the DVS could only contract with France for the supply of several Atelier d'Avions Coulombe Toucan aircraft (AAC Toucans or French-built Junkers Ju 52
/3ms). Pending their delivery, Bulgarian airmen flew the nation's first longer air services: several government flights to the peace negotiations in Paris. These flights used German-built Ju 52 aircraft (Bulgarian service designation Сова or Sova, = Owl), delivered before the war to the На Негово Величество Въздушни войски [НВВВ] or His majesty's Air Force, and captured during the war from retreating German forces.
DVS officially launched services under the Bulgarian Air Lines (Български въздушни линии or Balgarski vazdushni linii) name on 29 June 1947 with a Ju 52 flight from Sofia
via Plovdiv
to Burgas
. Other services soon followed. By the close of the year, the DVS had ordered several Soviet-built DC-3s (Lisunov Li-2
s) and at least 13 were operated until 1968. The Soviet forces stationed in Bulgaria took an interest in the DVS and by late 1947 took it into joint ownership as they had done with all airlines of former Axis East-European countries. The resulting airline was called ТАБСО or TABSO: Транспортно-авиационно българо-съветско обединение or "Transportno-aviacionno balgaro-savetsko obedinenie" (the Bulgarian-Soviet Transport Aviation Corporation). The Ju 52s gradually faded from the scene as TABSO re-equipped with Li-2s. These more modern machines allowed the airline or expand services.
aircraft. In 1962, it began services with the Ilyushin Il-18
, alongside the expansion of Bulgaria's inclusive-tour tourism industry, began to put the airline's name on the European and world map. The turboprop type overflew the Equator to Kenya
and the Atlantic to Peru
. By 1967, An-24s had arrived for domestic and regional flights.
By the mid-60s tourism was a major hard currency earner for Bulgaria and Tabso faced home-grown competition. Executives of the Teksim trading company had decided to start their own aviation business which included crop-spraying and inclusive-tour charter airline operations under the name of Булер or Bulair. Despite trying to buy Sud Aviation Caravelles, they ended up buying more Il-18s under heavy Soviet and Bulgarian political pressure. The Teksim venture proved a success and a thorn in the side of Tabso. By 1967, Tabso had the inside track in government circles, and the Teksim operation was largely disbanded by 1970. Amid rumours of scandal and embezzling, several Teksim directors were sent to jail, accused of performing capitalism-ruled economic behaviour. Their venture had operated under the Tabso banner for reasons of expediency (not least international rights). The last Bulair-branded aircraft had been rebranded as Tabso machines by 1972.
On 1 January 1968, Tabso was rebranded Balkan Bulgarian Airlines (Български въздушни линии "Балкан" or Bulgarski vazdushni linii "Balkan"). The wider commercial aviation scene was put under Balkan's control via subsidiaries such as the aforementioned Bulair, Селскостопанска авиация [ССА] or Selskostopanska aviacia [SSA] (the Agricultural Aviation Company) and a separate profit centre which performed ad-hoc aviation contracting, mostly with helicopters.
The jet age arrived at Balkan in late August 1968 with Tu-134 aircraft. The airline was the first outside the USSR to put the type into operation. This led to a close association with the Tupolev design bureau lasting two decades. There were several reasons why Bulgaria was allowed to put a new Soviet type into service ahead of more important Soviet-bloc nations. Andrei Tupolev
was President of the Soviet-Bulgarian Society. He had cemented personal links with his Bulgarian counterpart, formidable wartime Resistance figure and Politburo
member Tsola Dragoycheva
. She lobbied him for delivery preferences in return for campaigning before the Bulgarian authorities to buy his products rather than Western or other Soviet ones. Indeed, Balkan never bought Ilyushin's Il-62 long-range airliner, preferring to misuse its Tu-154s for long-range work. Similarly, it eschewed Ilyushin's Il-86
wide-body despite arguably having the precise role for it on its sea or ski charter flights.
receivers, enabling very accurate automatic long-range overwater navigation. In the 90s, Balkan was among the first to fit GPS navigation to its Tu-154 fleet.
A Tu-154B was flown non-stop from Montreal to Sofia, a distance of over 7000 km (4,349.6 mi) and a record for the type, during a charter flight.
As the Soviet-bloc economies gradually entered into stagnation in the 1970s, Balkan continued growing apace. By the mid/late 70s, it was carrying three million passengers a year: more than any Soviet-bloc airline other than some Directorates of Aeroflot. The fleet comprised aforementioned types plus An-12s for cargo (since late 1969) and Yak-40 regional jets for short-haul routes (since 1974). The comprehensive route system covered Europe, North Africa and the Middle East. With the delivery of more and more Tu-154s, Balkan opened longer-range routes, including ones to Zimbabwe
, Angola
and Nigeria
in sub-Equatorial Africa, and to Sri Lanka
and Vietnam
in Southern Asia.
On 10 November 1989, Bulgaria's long-ruling leader Todor Zhivkov
was removed from power and Bulgaria began moving away from the Soviet bloc. Within a year, Balkan had been restructured yet again, with Hemus Air
emerging from within it as a "second force" state-owned airline with mainly domestic and regional flights. Private airlines began to appear, most important among them Singapore-backed Jes Air
which launched services to New York and Singapore using A310s
.
from Air France to compete with failing JES Air on North American and Southern Asian routes. At the same time Balkan acquired four V2500-powered A320s from Oryx. The Soviet-build types remained in service alongside the new arrivals.
The 1990s were a time of headlong decline at Balkan. The airline suffered by the transition to a market economy. Former managers of state-owned industry began forming private companies to supply the industries they had once managed (at high prices), and yet other private companies to purchase their production (at low prices). The aim was to control both supply and sales, charging high prices and paying low prices to strangulate state companies and privatise them at very low prices. The entire Bulgarian economy was in deep recession. This was due to severe political instability at home and protracted wars in neighbouring Yugoslavia. These factors upset potential investment and tourism and cut off Bulgaria from many trading partners. (Since the Yugoslav wars between 1991 and 1996 tended to be called "Balkan Wars" in media coverage, the Balkan brand name suffered significant public damage, despite Bulgaria's remoteness from Yugoslav affairs.)
By 1998 Balkan's 767s returned to Air France and the A320s were passed on to other lessees. The Tu-154B fleet was overdue for replacement, and the Tu-154M was aging. Bulgaria's government appeared to pledge some funds for A310 acquisition so that long-range services could be sustained, but nothing came of this. Meanwhile, privatisation offers were made, long after the once-proud Balkan name had lost appeal.
Throughout the 90s, there had been rumours of investor interest in Balkan. The rumours consistently named Russian and German airline interests which were said to be eager to buy the airline. There was also lobbying by the airline's managers for a management buyout. In a late-1999 Balkan was acquired by a consortium comprising the Dutch branch of Israel's Zeevi Group and Israel's Arkia airline for some 200,000 US dollars. Zeevi was not a name known within aviation circles, while Arkia left the consortium once title in the airline was transferred. There was speculation that Zeevi, active in the construction industry, wanted Balkan as an entry into the refurbishment of Bulgaria's international airports.
In fact, over time Zeevi did develop a cogent business vision for Balkan: to sever links with the overstaffed Soviet-equipped past and make the airline a compact, profitable 737-equipped carrier. Zeevi appeared to exhibit managerial incompetence and encountered serious staff and government resistance on top of the foreseeable misfortune of losing Balkan's lucrative Arab routes.
Meanwhile, the government installed receivers to run the company. Short of cash, in 2002 they sold Balkan's valuable six weekly slots for Heathrow airport to British Airways for six million dollars. This caused a major outcry in Bulgaria and ultimately resulted in Balkan's final closure in October that year. By then, nothing of genuine value had been left to sell other than the much-tarnished Balkan name.
Balkan was succeeded as national carrier by newly formed Bulgaria Air
. Although the new airline was briefly known as Balkan Air Tour, and although it succeeded as lessee of several Balkan Boeing 737s, it has nothing in common with the former national carrier.
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
's government-owned flag carrier
Flag carrier
A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given country, enjoys preferential rights or privileges, accorded by the government, for international operations. It may be a state-run, state-owned or private but...
between 1947 and 2002. During the 1970s the airliner became a significant Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an carrier. The company encountered financial instability following the fall of communism in Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
. Despite managing to continue operations, following the turn of the millennium and a controversial privatisation it declared bankruptcy in 2002. A newly formed successor, Bulgaria Air
Bulgaria Air
Bulgaria Air , is the flag carrier airline of Bulgaria, with its head office on the grounds of Sofia Airport in Sofia. The company is owned by Chimimport Inc and is a leader in terms of market share...
, became the Bulgarian flag carrier in 2003.
Early years
Bulgaria had a short-lived airline (BunavadBunavad
Bunavad was the first national airline of Bulgaria...
) in 1927, yet the country was too poor to afford investing in modern air transport until after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. In 1946, the Ministry of Transport and Communications formed an Administration of Air Communications (Дирекция на въздушните съобщения [ДВС] or Direkcia na vazdushnite saobshtenia [DVS]). Since Bulgaria was regarded as a combatant on the defeated Axis side, the DVS could only contract with France for the supply of several Atelier d'Avions Coulombe Toucan aircraft (AAC Toucans or French-built Junkers Ju 52
Junkers Ju 52
The Junkers Ju 52 was a German transport aircraft manufactured from 1932 to 1945. It saw both civilian and military service during the 1930s and 1940s. In a civilian role, it flew with over 12 air carriers including Swissair and Deutsche Luft Hansa as an airliner and freight hauler...
/3ms). Pending their delivery, Bulgarian airmen flew the nation's first longer air services: several government flights to the peace negotiations in Paris. These flights used German-built Ju 52 aircraft (Bulgarian service designation Сова or Sova, = Owl), delivered before the war to the На Негово Величество Въздушни войски [НВВВ] or His majesty's Air Force, and captured during the war from retreating German forces.
DVS officially launched services under the Bulgarian Air Lines (Български въздушни линии or Balgarski vazdushni linii) name on 29 June 1947 with a Ju 52 flight from Sofia
Sofia
Sofia is the capital and largest city of Bulgaria and the 12th largest city in the European Union with a population of 1.27 million people. It is located in western Bulgaria, at the foot of Mount Vitosha and approximately at the centre of the Balkan Peninsula.Prehistoric settlements were excavated...
via Plovdiv
Plovdiv
Plovdiv is the second-largest city in Bulgaria after Sofia with a population of 338,153 inhabitants according to Census 2011. Plovdiv's history spans some 6,000 years, with traces of a Neolithic settlement dating to roughly 4000 BC; it is one of the oldest cities in Europe...
to Burgas
Burgas
-History:During the rule of the Ancient Romans, near Burgas, Debeltum was established as a military colony for veterans by Vespasian. In the Middle Ages, a small fortress called Pyrgos was erected where Burgas is today and was most probably used as a watchtower...
. Other services soon followed. By the close of the year, the DVS had ordered several Soviet-built DC-3s (Lisunov Li-2
Lisunov Li-2
The Lisunov Li-2, originally designated PS-84 , was a license-built version of the Douglas DC-3. It was produced by the GAZ-84 works at Moscow-Khimki, and subsequently at GAZ-33 at Tashkent-Vostochn. The project was directed by aeronautical engineer Boris Pavlovich Lisunov.-Design and...
s) and at least 13 were operated until 1968. The Soviet forces stationed in Bulgaria took an interest in the DVS and by late 1947 took it into joint ownership as they had done with all airlines of former Axis East-European countries. The resulting airline was called ТАБСО or TABSO: Транспортно-авиационно българо-съветско обединение or "Transportno-aviacionno balgaro-savetsko obedinenie" (the Bulgarian-Soviet Transport Aviation Corporation). The Ju 52s gradually faded from the scene as TABSO re-equipped with Li-2s. These more modern machines allowed the airline or expand services.
The 1950s and '60s
Soviet equity in TABSO (Transport-Aviation Bulgarian-Soviet Society - ТАБСО - Транспортно-авиационно българо-съветско общество)was reacquired by the Bulgarian government in 1954 as part of the Soviet forces' withdrawal from Bulgaria. The airline with this brand name survived until the end of 1967, often in the shadow of the headline phrase Bulgarian Air Transport. In 1956, Tabso bought its first Ilyushin Il-14Ilyushin Il-14
The Ilyushin Il-14 was a Soviet twin-engine commercial and military personnel and cargo transport aircraft that first flew in 1950, and entered service in 1954. Il-14 was also manufactured in East Germany by VVB Flugzeugbau, in Czechoslovakia as the Avia 14, and in China under the Chinese...
aircraft. In 1962, it began services with the Ilyushin Il-18
Ilyushin Il-18
The Ilyushin Il-18 is a large turboprop airliner that became one of the best known Soviet aircraft of its era as well as one of the most popular and durable, having first flown in 1957 and still in use over 50 years later. The Il-18 was one of the world's principal airliners for several decades...
, alongside the expansion of Bulgaria's inclusive-tour tourism industry, began to put the airline's name on the European and world map. The turboprop type overflew the Equator to Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
and the Atlantic to Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. By 1967, An-24s had arrived for domestic and regional flights.
By the mid-60s tourism was a major hard currency earner for Bulgaria and Tabso faced home-grown competition. Executives of the Teksim trading company had decided to start their own aviation business which included crop-spraying and inclusive-tour charter airline operations under the name of Булер or Bulair. Despite trying to buy Sud Aviation Caravelles, they ended up buying more Il-18s under heavy Soviet and Bulgarian political pressure. The Teksim venture proved a success and a thorn in the side of Tabso. By 1967, Tabso had the inside track in government circles, and the Teksim operation was largely disbanded by 1970. Amid rumours of scandal and embezzling, several Teksim directors were sent to jail, accused of performing capitalism-ruled economic behaviour. Their venture had operated under the Tabso banner for reasons of expediency (not least international rights). The last Bulair-branded aircraft had been rebranded as Tabso machines by 1972.
On 1 January 1968, Tabso was rebranded Balkan Bulgarian Airlines (Български въздушни линии "Балкан" or Bulgarski vazdushni linii "Balkan"). The wider commercial aviation scene was put under Balkan's control via subsidiaries such as the aforementioned Bulair, Селскостопанска авиация [ССА] or Selskostopanska aviacia [SSA] (the Agricultural Aviation Company) and a separate profit centre which performed ad-hoc aviation contracting, mostly with helicopters.
The jet age arrived at Balkan in late August 1968 with Tu-134 aircraft. The airline was the first outside the USSR to put the type into operation. This led to a close association with the Tupolev design bureau lasting two decades. There were several reasons why Bulgaria was allowed to put a new Soviet type into service ahead of more important Soviet-bloc nations. Andrei Tupolev
Andrei Tupolev
Andrei Nikolayevich Tupolev was a pioneering Soviet aircraft designer.During his career, he designed and oversaw the design of more than 100 types of aircraft, some of which set 78 world records...
was President of the Soviet-Bulgarian Society. He had cemented personal links with his Bulgarian counterpart, formidable wartime Resistance figure and Politburo
Politburo
Politburo , literally "Political Bureau [of the Central Committee]," is the executive committee for a number of communist political parties.-Marxist-Leninist states:...
member Tsola Dragoycheva
Tsola Dragoycheva
Tsola Nincheva Dragoycheva , also known under the pseudonym Sonya, was a Bulgarian politician of the Bulgarian Communist Party . A member of the illegal armed wing of the party in the 1920s, she spent years in prison and as an émigré in the Soviet Union. After World War II, she held a number of...
. She lobbied him for delivery preferences in return for campaigning before the Bulgarian authorities to buy his products rather than Western or other Soviet ones. Indeed, Balkan never bought Ilyushin's Il-62 long-range airliner, preferring to misuse its Tu-154s for long-range work. Similarly, it eschewed Ilyushin's Il-86
Ilyushin Il-86
The Ilyushin Il-86 is a medium-range wide-body jet airliner. It was the USSR's first wide-body and the world's second four-engined wide-body...
wide-body despite arguably having the precise role for it on its sea or ski charter flights.
The 1970s
As part of its Tupolev association, in 1971 Balkan was the first foreign airline of the stretched Tu-134A. In 1972, the airline was the launch export customer of the Tu-154. It also launched non-Soviet use of the Tu-154A, Tu-154B, Tu-154B-2 and Tu-154M. Balkan was a useful test-bed for new ideas by the Tupolev bureau. The airline pioneered the use of three-person flightdeck crews on the Tu-154 by removing navigators (flight crew members whom the designers had intentionally inserted into the Tu-134 and Tu-154) between 1972 and 1976. Balkan also removed the Tu-154's concrete ballast trim on which conservative Tupolev engineers had insisted. In the mid 1980s, a team of Bulgarian engineers interlinked the automatic flight control systems of the airline's Tu-154s with Omega OMEGA Navigation SystemOMEGA Navigation System
OMEGA was the first truly global radio navigation system for aircraft, operated by the United States in cooperation with six partner nations.-History:OMEGA was originally developed by the United States Navy for military aviation users...
receivers, enabling very accurate automatic long-range overwater navigation. In the 90s, Balkan was among the first to fit GPS navigation to its Tu-154 fleet.
A Tu-154B was flown non-stop from Montreal to Sofia, a distance of over 7000 km (4,349.6 mi) and a record for the type, during a charter flight.
As the Soviet-bloc economies gradually entered into stagnation in the 1970s, Balkan continued growing apace. By the mid/late 70s, it was carrying three million passengers a year: more than any Soviet-bloc airline other than some Directorates of Aeroflot. The fleet comprised aforementioned types plus An-12s for cargo (since late 1969) and Yak-40 regional jets for short-haul routes (since 1974). The comprehensive route system covered Europe, North Africa and the Middle East. With the delivery of more and more Tu-154s, Balkan opened longer-range routes, including ones to Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
, Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
and Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
in sub-Equatorial Africa, and to Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
in Southern Asia.
The 1980s
In 1986, Balkan was restructured as part of a wholesale shakeup of the late Socialist economy in an attempt to make it more productive and manageable. The airline was divorced from functions such as running airports. It had suffered disastrous traffic falls after the Comecon fuel crisis of 1979, when the number of passengers carried collapsed to under a million. By the late 80s, loads were back up to 70s levels. Of the three million annual passengers, a third were carried on domestic services, another third on charter flights, and the remaining million on scheduled international routes.On 10 November 1989, Bulgaria's long-ruling leader Todor Zhivkov
Todor Zhivkov
Todor Khristov Zhivkov was a communist politician and leader of the People's Republic of Bulgaria from March 4, 1954 until November 10, 1989....
was removed from power and Bulgaria began moving away from the Soviet bloc. Within a year, Balkan had been restructured yet again, with Hemus Air
Hemus Air
Hemus Air was an airline based in Sofia, Bulgaria. It operated scheduled domestic and international services from Sofia and Varna, as well as charter, cargo and air ambulance services. Its main base was Sofia Airport, with a hub at Varna Airport...
emerging from within it as a "second force" state-owned airline with mainly domestic and regional flights. Private airlines began to appear, most important among them Singapore-backed Jes Air
Jes Air
JES Air was founded in 1991 and was one of the first private-owned airlines in Bulgaria. The airline was supported with capital from Singapore-based companies. Its first route was Sofia-New York, due to an agreement between the two countries, and it then expanded its destinations towards Canada and...
which launched services to New York and Singapore using A310s
Airbus A310
The Airbus A310 is a medium- to long-range twin-engine widebody jet airliner. Launched in July 1978, it was the second aircraft created by Airbus Industrie,a consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. the consortium of...
.
The 1990s
By mid-1991, Balkan had leased two Boeing 767-200ERsBoeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
from Air France to compete with failing JES Air on North American and Southern Asian routes. At the same time Balkan acquired four V2500-powered A320s from Oryx. The Soviet-build types remained in service alongside the new arrivals.
The 1990s were a time of headlong decline at Balkan. The airline suffered by the transition to a market economy. Former managers of state-owned industry began forming private companies to supply the industries they had once managed (at high prices), and yet other private companies to purchase their production (at low prices). The aim was to control both supply and sales, charging high prices and paying low prices to strangulate state companies and privatise them at very low prices. The entire Bulgarian economy was in deep recession. This was due to severe political instability at home and protracted wars in neighbouring Yugoslavia. These factors upset potential investment and tourism and cut off Bulgaria from many trading partners. (Since the Yugoslav wars between 1991 and 1996 tended to be called "Balkan Wars" in media coverage, the Balkan brand name suffered significant public damage, despite Bulgaria's remoteness from Yugoslav affairs.)
By 1998 Balkan's 767s returned to Air France and the A320s were passed on to other lessees. The Tu-154B fleet was overdue for replacement, and the Tu-154M was aging. Bulgaria's government appeared to pledge some funds for A310 acquisition so that long-range services could be sustained, but nothing came of this. Meanwhile, privatisation offers were made, long after the once-proud Balkan name had lost appeal.
Throughout the 90s, there had been rumours of investor interest in Balkan. The rumours consistently named Russian and German airline interests which were said to be eager to buy the airline. There was also lobbying by the airline's managers for a management buyout. In a late-1999 Balkan was acquired by a consortium comprising the Dutch branch of Israel's Zeevi Group and Israel's Arkia airline for some 200,000 US dollars. Zeevi was not a name known within aviation circles, while Arkia left the consortium once title in the airline was transferred. There was speculation that Zeevi, active in the construction industry, wanted Balkan as an entry into the refurbishment of Bulgaria's international airports.
2000 and beyond
Because of the Israeli connection, Balkan lost its traditionally lucrative Arab routes at a stroke. Its assets seemed to be being sold-off in an asset-stripping manner. By early 2001, Balkan's fleet was not even up to the task of meeting the airline's summer charter commitments, despite taking on some used 737-300s. After a short service break in early 2001, Balkan halted all services for a long period just as the peak summer season approached, declaring insolvency. Zeevi management left to begin a complex lawsuit against the Bulgarian government whom they claimed had sold them an inoperable company.In fact, over time Zeevi did develop a cogent business vision for Balkan: to sever links with the overstaffed Soviet-equipped past and make the airline a compact, profitable 737-equipped carrier. Zeevi appeared to exhibit managerial incompetence and encountered serious staff and government resistance on top of the foreseeable misfortune of losing Balkan's lucrative Arab routes.
Meanwhile, the government installed receivers to run the company. Short of cash, in 2002 they sold Balkan's valuable six weekly slots for Heathrow airport to British Airways for six million dollars. This caused a major outcry in Bulgaria and ultimately resulted in Balkan's final closure in October that year. By then, nothing of genuine value had been left to sell other than the much-tarnished Balkan name.
Balkan was succeeded as national carrier by newly formed Bulgaria Air
Bulgaria Air
Bulgaria Air , is the flag carrier airline of Bulgaria, with its head office on the grounds of Sofia Airport in Sofia. The company is owned by Chimimport Inc and is a leader in terms of market share...
. Although the new airline was briefly known as Balkan Air Tour, and although it succeeded as lessee of several Balkan Boeing 737s, it has nothing in common with the former national carrier.
Fleet
Until 1990 Balkan's signs were carried both by normal airliners and special government detachment, agricultural aviation, sanitary wings, cargo planes. Here follows the fleet except An-2 /281 pieces/ and Ка-26, as well as civil Мi-8s /17 pieces/, Mi-17 /1 piece/, Mi-2, training L-410s.| Aircraft | Number in fleet | Passenger capacity |
|---|---|---|
| Аn-14 Antonov An-14 |-See also:- References :* Stroud, John. Soviet Transport Aircraft since 1945. London:Putnam, 1968. ISBN 0-370-00126-5.-External links:* *... |
? | 7-9 |
| Аn-24 Antonov An-24 The Antonov An-24 is a 44-seat twin turboprop transport designed and manufactured in the Soviet Union by the Antonov Design Bureau from 1957.-Design and development:... |
20 | 44 |
| Il-14 Ilyushin Il-14 The Ilyushin Il-14 was a Soviet twin-engine commercial and military personnel and cargo transport aircraft that first flew in 1950, and entered service in 1954. Il-14 was also manufactured in East Germany by VVB Flugzeugbau, in Czechoslovakia as the Avia 14, and in China under the Chinese... |
? | 32 |
| Il-18 Ilyushin Il-18 The Ilyushin Il-18 is a large turboprop airliner that became one of the best known Soviet aircraft of its era as well as one of the most popular and durable, having first flown in 1957 and still in use over 50 years later. The Il-18 was one of the world's principal airliners for several decades... |
22 | 120 |
| Ju-52 Junkers Ju 52 The Junkers Ju 52 was a German transport aircraft manufactured from 1932 to 1945. It saw both civilian and military service during the 1930s and 1940s. In a civilian role, it flew with over 12 air carriers including Swissair and Deutsche Luft Hansa as an airliner and freight hauler... |
? | 21 |
| Li-2 Lisunov Li-2 The Lisunov Li-2, originally designated PS-84 , was a license-built version of the Douglas DC-3. It was produced by the GAZ-84 works at Moscow-Khimki, and subsequently at GAZ-33 at Tashkent-Vostochn. The project was directed by aeronautical engineer Boris Pavlovich Lisunov.-Design and... |
? | 24 |
| Тu-134А/B Tupolev Tu-134 The Tupolev Tu-134 is a twin-engined airliner, similar to the American Douglas DC-9 and the French Sud Aviation Caravelle, and built in the Soviet Union from 1966–1984. The original version featured a glazed-nose design and, like certain other Russian airliners , it can operate from unpaved... |
20 | 68 |
| Tu-154А/B/М Tupolev Tu-154 The Tupolev Tu-154 is a three-engine medium-range narrow-body airliner designed in the mid 1960s and manufactured by Tupolev. As the mainstay 'workhorse' of Soviet and Russian airlines for several decades, it serviced over a sixth of the world's landmass and carried half of all passengers flown... |
40 | 141-167 |
| Yak-40 | 18 | 27-36 |
| Аn-12 Antonov An-12 The Antonov An-12 is a four-engined turboprop transport aircraft designed in the Soviet Union. It is the military version of the Antonov An-10.-Design and development:... |
8 | cargo |
| Airbus A320 - after 1991 | 4 | 162 |
| Boeing 737-300 | ? | ? |
| Boeing 737-500 - after 1991 | 3 | 116 |
| Boeing 767-200ER - after 1991 | 2 | 247 |
| TOTAL: | 125+ |