Romania’s Govt OKs Bucharest International Airports Merger

The information regarding the Government's decision was confirmed by Transport Minister Radu Berceanu.

Romania's Transport Ministry approved late September the merger of Bucharest's Otopeni Henri Coanda and Baneasa Aurel Vlaicu international airports, in order to further set up the National Airport Company.

The decision on the merger of the two airports was made within the general assembly of shareholders of airport Otopeni Henri Coanda.

Sources close to the matter told MEDIAFAX on July 30 that the Government decided to postpone discussing the draft decision on the setting up of the future airport company after the social democrats requested the draft should be first discussed by the members of the country's ruling coalition.

According to the relevant draft normative act, the purpose of the measure to set up a national airport company is to cut overall operating costs, set up a joint management strategy for the airports operating in the same area, draft a unitary strategy meant to develop and upgrade airport infrastructure, as well as to work on "a set of highly appealing measures in view of further privatization."

The document stipulates the future airport company will be funded from its own revenues, the state budget, bank loans, external loans contracted or guaranteed by the state in accordance with European Union regulations regarding competition, external non-reimbursable funds under the law, as well as legal forms of private equity participation and other law-regulated financial sources.

The document also stipulates transferring several plots of land privately owned by the state and put at the disposal of Henri Coanda airport for free, into the free use of the future airport company.

The future airport company, whose share capital will set off with 143.7 million lei (EUR1=RON 4.2673), will be headquartered in Otopeni town, Ilfov county, close to capital city Bucharest.

The country's former government approved the decision to set up the airport company in March 2007, and the request in this respect was submitted to the National Trade Registry two months later.

In June 2007, Romanian airliner Aviatia Utilitara took legal action against the setting up of the airport company and a delegate judge with the Ilfov Trade Registry Office suspended the setting up of the airport company.

In 2007, the Transport Ministry at that time started proceedings to list a 5% stake of Otopeni on the Bucharest Stock Exchange. Furthermore, the previous government annulled early 2008 the decision to set up the company to allow listing the two airports on the stock market.

Bucharest's Otopeni and Baneasa airports have 80% of their shares in the hands of the Romanian Transport Ministry, while investment fund Fondul Proprietatea owns a 20% stake. The current shareholding structure will remain unchanged in the future airport company.

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