Balkan goes for operating leases for new aircraft to replace Tu-154s

Published: 10/8/1999

According to Baruch Chakarov, Executive Director of Balkan Airlines, the company has signed a contract for a 30 month operating lease of two Boeing 737-300s. This follows previous reports that the lease of three 737s, from General Motors Capital Services, was being considered (www.concise.org. 15th September 1999). The Boeings are intended to replace ageing Tu-154s and will be used on international flights. Chakarov said that the first plane is expected to be delivered by 15th October. He added that an operating lease had been chosen because the company was still being evaluated by the Speedwing consultancy, following its acquisition, in July 1999, by Israeli group, Zeevi Holdings (www.concise.org. 28th July 1999). Speedwing's conclusions would determine whether the airline would move from an operating lease to a financial lease, as well as the total number of planes required. Chakarov believes that the new owners of Balkan Airlines intend to cut staff and pay compensation owed to those already laid off, under the terms of the collective labour contract. Trade unions have threatened strike action if redundancies are made.

Article ID: 961