Bosnia and Herzegovina Faces Risk of Airport and Airspace Closure
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Loading... - Quinian Armstrong
- 15 Apr 2025
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Bosnia and Herzegovina's aviation sector is confronting a critical challenge following the European Organisation for the Safety of Air Navigation (Eurocontrol) freezing all payments to the country's Air Navigation Services Agency (BHANSA). This action was prompted by a court-ordered enforcement related to an arbitration ruling favoring the Slovenian company Viadukt, which had sued Bosnia and Herzegovina over the unilateral termination of a concession agreement for a hydropower project on the Vrbas River. The arbitration tribunal awarded Viadukt approximately 56 million euros, a sum that continues to grow due to accruing interest.
Although BHANSA was not directly involved in the dispute, the enforcement action has resulted in the freezing of its funds by Eurocontrol, jeopardizing the provision of air services across Bosnia and Herzegovina. The agency has issued warnings about its dire financial state, leading to cuts in employee wages. This situation has ignited political debates within the country, with the Fiscal Council considering a plan to settle the debt using state funds. However, this proposal faces strong opposition from the Prime Minister of the Federation of Bosnia and Herzegovina, who has expressed a willingness to veto it, arguing that the debt, which originates from the Republika Srpska entity, should not be covered by federal resources.
The union representing air traffic controllers in Bosnia and Herzegovina has raised alarms about the implications of the Eurocontrol blockade. They stated, “The Eurocontrol blockade has created a scenario in which BHANSA may soon be unable to cover even basic operating costs such as fuel, maintenance, utilities, and the servicing of critical equipment. Air traffic controllers hold one of the most demanding and high-responsibility professions in society—where even a single mistake can have tragic consequences. Today, they are working under a cloud of uncertainty, stress, and concern for their livelihoods, which directly affects their focus and overall flight safety."
The Air Traffic Controllers European Unions Coordination (ATCEUC), representing over 14,000 air traffic controllers across Europe, has reached out to Eurocontrol and the Belgian government, urging them to unblock funds for BHANSA. In their letter, they expressed strong concern regarding the legal and financial risks threatening BHANSA and the stability of air navigation services across Europe. They highlighted that the enforcement order issued to Eurocontrol on March 21, 2025, has triggered an immediate financial crisis for BHANSA, which relies on route charge payments for 90% of its funding. The agency is now on the brink of operational collapse.
The ATCEUC has warned that without urgent intervention, the situation could lead to the total shutdown of air traffic control services in Bosnian airspace, the closure of Sarajevo, Banja Luka, Mostar, and Tuzla airports, disruptions to military, humanitarian, and medical flights, and mass layoffs of highly skilled personnel. Additionally, failure to pay Viadukt could result in the seizure of Central Bank properties in Banja Luka, Mostar, and the Brčko District, further complicating BHANSA's funding issues with Eurocontrol.
