Moldovan air company purchased by Romanian one

Chisinau, 02 October /MOLDPRES/ – Moldovan company Air Moldova was purchased by Romanian Civil Aviation Group S.R.L. in a commercial contest announced by the Public Property Agency (APP). The value of the sale – purchase transaction exceeds MDL 1.2 billion, out of which 50 million were transferred to the state budget, the rest of the amount represents the debts of Air Moldova, which the investor has been obliged to pay, according to a press release of APP.

The purchaser also assumed the obligation to solve the operating and development problems of the company. Civil Aviation Group SRL is founded by a group of investors, the largest share being held by the company with international reputation Blue Air.

The APP notes that the exposure to the privatisation of the state-run Air Moldova was determined by "the need to safeguard the airline and avoid its bankruptcy." In the recent years, the results of its activity have been continuously declining, registering losses of MDL 227 million in 2015, in 2016 – profit of MDL 8.54 million, and in 2017 losses in the amount of MDL 190,4 million. In the first half of 2018, the company's debts amounted to MDL 1,283 billion.

The State Enterprise The Air Moldova Air Company was included in the State Property List subject to privatisation by Government Decision of 12 November 2008. According to the Transport and Logistics Strategy 2013 – 2022, approved by the Government in October 2013, in the face of competition on international market, Air Moldova was to be exposed to privatisation in 2015.

The changes in the air transport market, the demanding competitive environment, the pressure of low-cost airline operators on the airline market have significantly affected Air Moldova, which has insufficient resources to develop and modernise its fleet of aircraft, said APP.

The winner of the competition has assumed the obligation to develop the infrastructure of Air Moldova, extend air routes network, increase the flow of passengers on the main existing routes operated by Air Moldova, modernise and increase the fleet, aeronautical staff, as well as the pilots and cabin crew.

Blue Air is one of the most important Romanian airline companies, which owns 30 Boeing aeroplanes and covers 80 destinations. The associates of Civil Aviation Group SRL are also two individuals, citizens of Moldova with aviation experience over 20 years, co-owner of AMS Airlines Air Charter (Georgia) and financial expert, chairman of a consulting company from US.

According to the development strategy of Air Moldova, Civil Aviation Group S.R.L. is set to launch seven new routes by the end of 2019 and four new routes in 2020. There are expected to be opened long-distance flights to USA, Canada, China and mid-distance flights in 2021. In addition, it is planned to increase frequencies on a number of existing destinations. These activities will be based on mutual flows of passenger traffic between CIS and European countries, thus transforming Chisinau Airport into an international aviation hub.

By 2021, the fleet of Air Moldova will have 14 aircrafts , and the number of pilots and cabin crew will increase from 180 in 2018 to 380 employees – in 2021.

(Reporter V. Bercu, editor A. Raileanu)