The Israeli company which last year acquired a 75% stake in Balkan Bulgarian Airlines may pull out of the deal due to a dispute with the Bulgarian Government over the contract.
The Zeevi Group claims the government is not fulfilling its obligations. Sources in Sofia say Bulgaria is demanding the Israelis cover $120 million of past debts rather than the originally agreed $30 million over a three-year period. The government has also hiked Balkan's taxes and fees.
Talks have failed to produce a solution and Zeevi is demanding a satisfactory answer. Sources say the Israelis may withdraw unless an agreement is reached quickly.
Source: Flight International