The Bosnia and Herzegovina Directorate of Civil Aviation (BHDCA) says it has suspended the Air Operator Certificate (AOC) of flag carrier B&H Airlines (JA, Sarajevo) until September 30. The move effectively seals the fate of the cash-strapped airline, which last operated commercial flights in early June.

B&H Airlines sole shareholder, the Bosnian government, has struggled to recapitalize the airline amid debts of BAM23 million (EUR11.75 million) owed primarily to HETA, the Austrian firm from which the airline had leased two ATR72-200s.

Bosnian Prime Minister Fadil Novalic has indicated his government would consider establishing a new national carrier in the event B&H Air is forced to declare bankruptcy.

As it currently stands, Icar Air (RAC, Tuzla Int'l) is Bosnia's sole remaining carrier operating a single Let 410 on passenger and cargo charter flights between Sarajevo and destinations along the Italian Adriatic coast.