PARLIAMENT'S committees on the economy and on transport approved the strategy for privatisation of the national carrier Bulgaria Air at a joint meeting on October 13, but assurances that the draft would be approved by Parliament as a whole this week were not fulfilled.

MP Yordan Mirchev, chairperson of Parliament's transport and communications committe said that the draft strategy, presented by Deputy Prime Minister and Minister of Economy Lydia Shuleva and Minister of Transport and Communications Nikolai Vassilev, would be approved by Parliament this week.

However, Parliament's information centre told The Sofia Echo that this was not on the agenda for the week ending Friday October 22.

"This strategy has nothing to do with the previous privatisation attempt, it will be carried out according to the rules," Mirchev told a joint meeting of the committees, after being asked how it would differ from Balkan Airline's unsuccessful privatisation.

According to minor amendments that the joint committees made to the privatisation strategy draft, which was approved by Vassilev on August 16 this year, the company's future buyer will not be able to sell the air carrier's shares for a period of three years without obtaining permission from the Transport and Communications Ministry.

The draft approved by both committees gives preference to strategic investors registered in Bulgaria or in countries of the European Union.

The sale and transfer of ownership of take-off and landing slots, without the prior permission of the minister of transport, is also restricted for a period of three years.

The draft said that Bulgaria Air cannot be declared insolvent or cannot undergo a liquidation procedure for a period of five years after the privatisation deal is finalised.

According to Mirchev, all the relevant committees of Parliament had agreed that it was necessary to sell 100 per cent of the Bulgaria Air assets.

If the strategy for privatisation is approved by Parliament, the Privatisation Agency will propose a sale of 100 of the company's capital through a two-stage bid.

The strategy provides that the two-stage bid be open to strategic bidders that are Bulgarian corporate bodies registered under the Commercial Code. These companies should have 100 per cent capital owned by companies with revenues coming from aviation services exceeding 100 million euro within the past three years.

In case of weak interest from strategic investors, financial institutions will be allowed to place offers. Financial investors with assets exceeding 200 million euro will be invited to bid, if the number of strategic investors showing interest in Bulgaria Air is less than four.

Vassilev said after the meeting that Bulgaria Air could be sold by the middle of 2005, adding that the company is doing well and is one of the few air carriers in Europe to be making a profit.

The Ministry of Transport and the Privatisation Agency are planning to launch the tender by the end of the year and to finalise the deal in the middle of next year.

It is too early to predict which investors will bid for the privatisation of the national carrier. Earlier interest was expressed by Austrian Airlines, and the Italian companies Volare and Air One.

According to Shuleva the aim of the privatisation is to attract candidates who would include Bulgaria in some of the big alliances because due to the difficult aviation services market.