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Tailor-made laws in the Western Balkans and Turkey

Law establishing Air Albania - Tailor-made laws in the Western Balkans and Turkey

Law establishing Air Albania

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Introduction

On 16 May 2018, the Albanian government adopted Decision of the Council of Ministers No. 309 establishing the Air Albania company with joint capital from Turkish Airlines (49-per cent stake), the state-owned company Albcontrol (10-per cent stake) and a private company, MDN Investment (41-per cent stake). The agreement also gave Turkish Airlines disproportionate management power by allowing it to appoint the administrator.

Country
Albania
Sector
Public contracting
Type of Law
Capturing a market, an industry or public resources

Description of the law

On 16 May 2018, the Albanian government adopted Decision of the Council of Ministers No. 309 establishing the Air Albania company with joint capital from Turkish Airlines (49-per cent stake), the state-owned company Albcontrol (10-per cent stake) and a private company, MDN Investment (41-per cent stake). The agreement also gave Turkish Airlines disproportionate management power by allowing it to appoint the administrator.

The statutes of MDN Investment state that the company’s purpose is to build and manage Vlora Airport. However, its involvement in the establishment of Air Albania links both projects. MDN Investment was established on 7 May 2018, only nine days before the adoption of the government’s decision to establish Air Albania on 16 May 2018. It is also worth noting that the Prime Minister announced the name of the airline and presented its staff before the council decision was approved.

It is unclear why the government chose a newly formed company, MDN Investment, with no experience in air transport, what procedure was used and why it refused to open up the procurement process to competition.

The media reported that the decision to establish Air Albania may have violated Albania’s Stabilisation and Association Agreement with the EU because it bypassed public procurement rules.

Questions also remain about ownership of the company, with two owners selling their shares after little over a month in the job.

Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of December 2020. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.