In September 2018, Air Albania operated its first (inaugural) flight on the Tirana-Istanbul route. The flight was part of the company's launch of operations as a new national airline.
The creation of “Air Albania” was seen as the return of a national airline after the absence of a state-owned company following the closure of “Albanian Airlines”. The project was presented as a strategic cooperation with “Turkish Airlines”, the largest Turkish airline (a combined private-state model) and as a step to increase Albania’s air connections.
“Air Albania” was officially established on 16 May 2018, as a Public-Private Partnership between Albania and Turkey. The airline had as its main shareholder the Turkish company “Turkish Airlines” (49.12%) and the remaining shares are shared by the Albanian state-owned company “Albcontrol” (~10%) and a private Albanian company “MDN Investment” (~41%).
In the two years following its launch, the company grew rapidly, reaching 18% of the market in 2021, ranking second behind Wizz Air, which at the time had 34% of the market.
The company, which was strongly promoted by the government, had very ambitious plans, both in expanding destinations in Europe, with lines to Italy and Britain, which were temporarily realized, as well as those beyond it, as far as the USA.
Prime Minister Rama said in October 2024, speaking about the opening of Vlora Airport, "that we are discussing with the company 'Air Albania', to finally enable a direct intercontinental flight. I cannot tell you when the first flight will take place, but when it does, we will definitely do it here in New York."
But, after 2021, "Air Albania" not only did not expand, but it began to rapidly lose ground, as the growth of the low-cost operator "Wizz Air" "blocked" the destinations it operated and targeted, with the exception of Istanbul.
From 2024, competition increased from another low-cost operator, Ryanair.
In recent years, "Air Albania" has been handling a high flow of travel to Istanbul's main airport with two to three flights per day, both for direct connections for those traveling for trade, tourism and other purposes, and due to the fact that Europe's largest airport is an important transit hub with the entire world.
The other operator that had a direct line to Istanbul was "Pegasus Airlines", which flies from the low-cost airport, "Sabiha Gokcen Airport".
By focusing on only one destination, Air Albania's market share in the flight pie dropped to 10% in 2022 and shrank to 3.4% in 2024.
The company received the final blow in November 2025, when Turkish Airlines announced that it had decided to sell its entire 49% stake in Air Albania and subsequently did not allow the sale of transit tickets through Air Albania.
The latter began to repeatedly cancel flights, until it stopped them in December. In 2025, Air Albania closed with a market share of only 2.33%, dropping to the fifth largest operator in the country.
In January 2026, Turkish Airlines announced that it would launch direct flights from Tirana to both Istanbul Airport and Sabiha Gokcen Airport. In addition, it announced the launch of flights from March to Istanbul and Ankara and Ajet, the low-cost wing of Turkish Airlines, completely removing Air Albania from the Turkish market.
The silent duel between "Turkish Airlines" and "Air Albania"
From the start, the "marriage" between "Turkish Airlines" and "Air Albania" has been forced, more like a political agreement, sources familiar with the progress of this venture, which has a complicated history where political, economic and geopolitical interests intertwine, told "Monitor".
The company, where "Turkish Airlines" had 49% of the shares and the Albanian state 10%, has been politically misused by both sides, leading to mismanagement, fictitious increase in liabilities, estimated to have reached 80 million euros, problems with the sharing of ticket revenues, lack of support as a national flag carrier, favoritism towards other low-cost companies, etc.
There has also been a total lack of financial transparency. Air Albania has never submitted a balance sheet to the National Business Center, nor has it ever been audited.
According to data from Taxes, the company's annual turnover has been 4-5 billion lek per year, while the operator has always resulted in losses, turning it today into a practically bankrupt company, with debts that it is not known who will take over.
Until a year and a half ago, the Turkish company was in charge, while later it was taken over by a private Albanian shareholder, who had plans to increase destinations, but those were interrupted when Turkish Airlines put its shares up for sale.
Is there hope for a comeback?!
At the end of January 2026, the Council of Ministers decided that the 10% capital quotas owned by the state-owned company "Albcontrol", sh.a., in the company "Air Albania", will be transferred to the Ministry of Economy and Innovation.
The Ministry of Economy and Innovation, with the transfer of quotas, according to the decision, exercises all rights and obligations arising from the quality of partner in the company "Air Albania".
Sources claim that this is the last attempt to keep “Air Albania” afloat. As part of the reorganization plan, the aim is for the Albanian government to take over the quotas of “Turkish Airlines” and for the latter to transfer a portion to an international air operator.
With Turkey already "busy", the intended destinations are Italy and the United Kingdom, where there are many Albanians.
The most important issue to be resolved remains that of debts, which party will assume them.
The complicated history of “B&H Airlines” and “Turkish Airlines”
The history of "Air Bosna", which later became "B&H Airlines", is closely linked to Bosnia and Herzegovina's efforts to have a national airline after the war and to the entry of "Turkish Airlines" as an investor.
Air Bosna was established in 1994 as the country's national carrier, but operated with financial difficulties for years and eventually closed in 2003 due to large debts and a lack of capital.
The government decided to revive the project and in 2005 the company was relaunched under the name "B&H Airlines", inheriting the previous structure and role as a national airline, but with a very small fleet and heavy dependence on state support.
In 2008, Turkish Airlines entered as a strategic partner by purchasing around 49% of the shares, with the aim of stabilizing the company, bringing capital and managerial expertise, and better integrating it into the regional flight network.
However, even after this partnership, B&H Airlines continued to suffer financial losses, a small market, and the need for constant subsidies. Over the years, disagreements between the Turkish partner and the Bosnian government over how to finance and run the company increased. In 2012, Turkish Airlines withdrew from the partnership and handed over its shares to the state.
After the departure of the strategic investor, the company's financial situation deteriorated further. The fleet shrank, the flight network was reduced, and the company lost its ability to operate normally.
In 2015, B&H Airlines entered bankruptcy and ceased operations, marking the end of Bosnia and Herzegovina's multi-year effort to maintain a functioning national airline.
Essentially, its story is considered a classic example of the difficulties national airlines face in small markets, especially when they depend on state support and have a limited fleet and network./Monitor.al/
