Bulgaria wants to sell 99.99% of the flag carrier to a strategic or a financial investor and keep a "golden share" in the company to safeguard the national interests, under a sell-off plan that cleared parliament last month. The Government will try to complete the privatisation of the company by the end of June. The idea of the new government-proposed strategy was to help raise the company’s competitiveness ahead of Bulgaria’s European Union entry, scheduled for January 1 2007.

So far, Bulgarian air carrier Hemus Air, the Austrian Airlines and Russian investor have shown interest to take part in the privatisation of Bulgaria Air. Interest from the Scandinavian countries is also expected.

Bulgaria Air's pre-tax profit dropped last year by 71% to EUR 256,000 due to the restructuring of the company, a rise in fuel prices and the entry of low cost airlines in Bulgaria. The national air carrier is currently accounting for 30% of the air travel tickets sold in the southeast European state of 7.8 million people and around 25% of the revenue from ticket sales. Bulgaria Air succeeded the country's flag carrier Balkan Airlines, which was declared bankrupt in 2002, after a nearly two-year struggle to repay debts totalling around $100 million.