“The Ministry of Economy manifests its total willingness to attract investments in this company by signing partnerships/entering a joint venture, and in any other way stipulated by law, with the purpose of relaunching the activity of Avioane Craiova,” indicates a ministry statement.
According to a statement by the Authority for State Assets Recovery (AVAS) issued last month, the mandate granted to the authority for the privatisation of the share package representing 80.97 percent of Avioane Craiova’s share capital has expired. Thus, AVAS can no longer negotiate with Alenia Aeronautica SpA, the only company remaining in the race for the privatisation.
Avioane Craiova had two failed privatisations, one last year with the Czech Aero Vodochody airplane builder, and the other with the Italian Alenia company this year. Some of the reasons for these failures are the firm’s historical debts and the fact that the Romanian state declines any responsibility in case certain data regarding the company proves false. Another problem is the contract between the company and the former Republic of Yugoslavia, by which Serbia demands damages in excess of €10 million from the Romanian state.
The losses registered by Avioane Craiova widened to RON 15.13 mln (€3.58 mln) in the first nine months of this year, while its net sales declined one third year-on-year, to RON 5.62 mln (€1.33 mln), according to financial data provided by the company.
