PUBLIC PROPERTY AGENCY SELLS AIR MOLDOVA FOR COMPANY’S DEVELOPMENT

Vladimir Baldovici, Director of the Public Property Agency, reported at a press conference that the Air Moldova company has been put up for sale in order to find an investor interested in the company’s development.

He stressed that they thought of privatizing the company even back in 2003, but so far almost no steps have been taken.

“Today’s situation in the Moldovan air transportation market has changed dramatically. We have a lot of foreign carriers, both large companies and low-cost airlines; the state finds it difficult to compete with such companies on equal terms. The company is in desperate need of funds for the development, renewal, and purchase of new equipment”, said Baldovici, noting that the company has a 1.5 billion lei debt, including 150 million accumulated in the current year.

“The buyer will also have to repay the company’s debts. In addition, we expect him to invest about 60 million euros in the company’s development. Besides that, the investor will be obliged to maintain the profile of the activity, the company’s brand and its staff”, said the Director.

Speaking about the privatization of the largest tobacco plant in Moldova – Tutun-CTC, he admitted that the plant was put up for sale for already seven times and to no avail.

“There is also an unfavorable situation here because of the global trend of smoking control. We hope that there will be an investor who will reshape the enterprise, retaining its staff. The company has a favorable location, a large area for production and just additional territory. We hope these advantages will be of interest to the potential buyers”, he said.