An international arbitration ruling leads to the blocking of Eurocontrol payments to the Bosnian air traffic control authority (BHANSA). The result: an existential threat to air traffic over Bosnia and Herzegovina.
The aviation industry in Bosnia and Herzegovina is facing a serious challenge. The European Organization for the Safety of Air Navigation (Eurocontrol) has frozen all payments to the Bosnian air navigation service (BHANSA). This follows an arbitration ruling in favor of the Slovenian company Viadukt, which had sued Bosnia and Herzegovina for the unilateral termination of a concession agreement. Although BHANSA was not directly involved in the dispute, the financial blockade hits the service hard and threatens the stability of air traffic in the country.
Background of the conflict
The problem originates from a dispute between the Republika Srpska, one of the two entities of Bosnia and Herzegovina, and the Slovenian company Viadukt. Viadukt had a concession contract for a hydropower project on the Vrbas River, which was unilaterally terminated by the Republika Srpska. An international arbitration tribunal subsequently awarded Viadukt compensation of approximately €56 million. Since the Republika Srpska refused to pay, enforcement proceedings were initiated against the entire state of Bosnia and Herzegovina. As a result, a court in Brussels ordered Eurocontrol to freeze all payments to BHANSA.
BHANSA is responsible for air traffic control throughout Bosnian airspace and is primarily financed through fees levied by Eurocontrol for the use of the airspace. With the freezing of these payments, the authority faces significant financial difficulties. According to BHANSA, basic operating costs such as fuel, maintenance, and salaries can no longer be covered. The air traffic controllers' union warns of a potential collapse of air traffic control, which could lead to massive disruptions to air traffic.
Political reactions and debates
The situation has sparked a political debate within Bosnia and Herzegovina. The country's Fiscal Council is considering paying off the debt with state funds. However, the Prime Minister of the Federation of Bosnia and Herzegovina rejects this, arguing that the debt originates from the Republika Srpska and should not be borne by the Federation. This disagreement complicates a quick solution to the problem.
The Air Traffic Controllers European Unions Coordination (ATCEUC), which represents over 14.000 air traffic controllers in Europe, has sent an open letter to Eurocontrol and the Belgian government, demanding the immediate release of funds for BHANSA to prevent the collapse of air traffic control in Bosnia and Herzegovina. The ATCEUC warns of far-reaching consequences for European air traffic if BHANSA is forced to cease its services.
Importance of Bosnian airspace
Bosnia and Herzegovina lies on a key air traffic route in Southeastern Europe. Since the escalation of conflicts in the Middle East, air traffic over the country has increased, as many airlines avoid the airspace over certain regions. BHANSA thus plays a central role in the safe handling of European air traffic.
The current crisis poses a serious threat to Bosnia and Herzegovina's aviation infrastructure. Without a swift political solution and the release of frozen funds, there is a risk of air traffic control collapsing, which would have not only national but also international repercussions. It remains to be seen whether the country's political actors can reach an agreement to ensure the stability of air traffic.