Last year, more than 4.6 million passengers traveled through Pristina International Airport “Adem Jashari,” where more than twenty airlines from various countries currently operate.
Although Kosovo’s aviation market is growing steadily, it remains unclear whether there is room for a new operator financed by the state budget.
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The Government of Kosovo has expressed its intention to establish a national airline, but has not yet provided details about the project’s cost, its funding source or the additional services it would offer alongside those already available.
Civil aviation specialists warn that high operating costs and competition with international airlines could jeopardize the survival of such an enterprise.
The experience of neighboring countries also shows that even airlines with state support or international strategic partners face major financial problems.
In Albania, Air Albania halted flights at the end of 2025, and its operating license was revoked in May of this year.
In Slovenia, meanwhile, Adria Airways declared bankruptcy in 2019, just three years after it had been privatized.
Despite these warning signs, Prime Minister Albin Kurti announced that during the new four-year term, procedures would begin to establish an airline with public capital.
“During the term, we will begin the process of creating a state-owned airline, in cooperation with important actors in the aviation sector inside and outside the country,” Kurti said on September 13 while presenting the government program to Parliament.
He also promised investments in the education, training and certification of civil aviation professionals.
Radio Free Europe asked the Government of Kosovo for information about the project’s cost, its financial model, potential partners and expected benefits, but had not received a response by the time this article was published.
The cost of establishing an airline varies depending on the number of aircraft, how they are acquired — through purchase or leasing — the ownership structure and the form of financing.
Beyond the aircraft, a new airline operator must hire qualified staff, secure technical maintenance, safety systems and insurance policies, and have the financial resources to cover operating expenses.
A similar initiative had been put forward by the Democratic League of Kosovo in its program for the February 2025 parliamentary elections.
LDK had proposed the creation of a company with mixed public-private ownership, with four to eight aircraft, which would operate mainly to destinations where Kosovo’s diaspora lives.
The initial investment was estimated at around 170 million euros, of which 70 million would come from the Government and 100 million from the private sector.
However, this figure referred to the model proposed by LDK and not to the current project of the Kurti Government.
Former Minister of Trade and Industry Ismet Mulaj believes that the actual costs could be significantly higher.
“The expenses are very high — more than 500 million euros. But everything depends on how the Government has conceived the project, whether it will buy aircraft or lease them. With leasing, the cost is lower, around 300 to 400 million euros. A single aircraft costs 50 to 80 million euros. This is unaffordable for the country’s budget,” Mulaj told Radio Free Europe.
For comparison, Kosovo’s annual budget for this year is approximately four billion euros.
The figures cited by Mulaj are personal estimates and are not based on any published study of the proposed airline.
Aircraft prices also vary depending on the model, age and terms of purchase or lease.
Mulaj points out that the idea of an airline has also been discussed in the past, but adds that high costs and fierce competition make it difficult for a new operator to become financially sustainable.
He views the promise more as a political move than as a well-considered economic project.
In its report on Kosovo, published in April of this year, the International Monetary Fund called for improved management of public investments and fiscal risks.
The IMF emphasized the need for more careful selection and more efficient implementation of projects, as well as greater transparency in the management of public finances.
According to the IMF, public investments should be high-quality and promote economic development, while at the same time preserving fiscal stability.
These recommendations do not specifically concern the project to establish an airline in Kosovo.
Pristina International Airport “Adem Jashari” recorded more than 4.6 million travelers during 2025, representing a 13 percent increase compared with the previous year.
According to data from Kosovo’s Civil Aviation Authority, around 15,000 flight departures were recorded during this period.
Basel, Zurich and Düsseldorf were among the most frequently served destinations, mainly because of Kosovo’s strong ties with its diaspora.
Twenty-one international air carriers currently operate at Pristina Airport.
Although these figures indicate considerable demand for air transport, they are not enough to confirm whether the market could financially absorb another new airline.
Former director of the Civil Aviation Authority Bujar Ejupi notes that a Kosovo-based operator would have to compete with companies that have larger fleets, well-developed destination networks and many years of experience in the market.
“Large budget expenditures would be required to purchase aircraft, train staff and operate the company. If a public company is established, it would certainly have international staff. Local staff would be integrated gradually. We have never had an airline before, and in aviation, companies need an international market, not just a local one,” Ejupi told Radio Free Europe.
According to him, the lack of local experience and international competition would make it significantly more difficult for a new operator to enter the market.
“It is very difficult to compete with companies that have years of experience and extensive capacity,” he added.
Whether a new company could offer cheaper tickets or new destinations would depend on passenger demand, competition and operating costs — issues on which the Government has not yet published a detailed analysis.
While the Government is seeking to establish an airline, existing operators have already announced plans to expand their activities in Kosovo.
In July, Wizz Air announced that beginning in November it would station an aircraft at Pristina Airport and open three new routes to Belgium, Germany and Switzerland.
According to the company, the expansion is expected to add around 500,000 seats a year to its capacity from Pristina and create 40 new direct jobs.
Pristina Airport also has an incentive program for the 2025-2028 period, offering concessions to carriers that open new destinations, increase flight frequency or base aircraft at the airport.
An alternative model for supporting air transport is implemented in the European Union through the public service obligation mechanism.
Through this mechanism, member states can support flights to regions where air transport is considered essential but where commercial airlines do not provide sufficient services.
Under certain circumstances, the state can select an airline through a tender and financially compensate it for providing the service, without needing to establish a publicly owned company.
However, applying such a model in Kosovo would require a specific legal and economic assessment.
In 2018, Albania established Air Albania, an airline with state and private participation.
In the company’s initial shareholder structure, 49 percent of the shares belonged to Turkish Airlines, 41 percent to MDN Investment and 10 percent to Albcontrol, an enterprise owned by the Albanian state.
Air Albania operated its inaugural flight on the Tirana-Istanbul route in September 2018, while it began regular operations in April 2019.
After several years of operations, the company began reducing its flights and halted its activities in December 2025, while its license was suspended.
On May 18, 2026, Albania’s Civil Aviation Authority revoked Air Albania’s operating license following the revocation of its Air Operator Certificate.
Slovenia also experienced the closure of a long-established airline.
Adria Airways, Slovenia’s former national airline, declared bankruptcy in 2019 after facing major financial difficulties.
The company had been privatized three years earlier and was no longer state-owned when it went bankrupt.
Its closure affected Slovenia’s air connections, prompting the Government to consider subsidizing important international routes.
For Ejupi, these experiences are an argument for exercising greater caution when undertaking similar investments.
“In Albania, Slovenia, Bulgaria, Hungary… even those that had capacity and a tradition for years have gone bankrupt,” he said.
However, the companies mentioned had different ownership models and faced different financial and operational problems.
Their bankruptcies do not necessarily mean that a new airline would suffer the same fate, but they highlight the risks associated with investments in this industry.
There are also national airlines in the region that have managed to survive and develop.
Air Serbia, established in 2013 through the reorganization of the former national airline JAT Airways, has expanded its flight network to Europe, North America and Asia.
In Croatia, Croatia Airlines continues to operate more than three decades after its establishment, connecting the country with international destinations.
Both companies have retained their roles as national carriers, although they have different business models and different financial results.
Aviation expert Albion Idrizi believes that Kosovo should develop the aviation sector as a whole, including both commercial and military aviation.
However, in his view, the priority should not be solely the creation of a passenger transport airline.
“We must start with general aviation. General aviation will produce skilled local workers. Those Kosovar men and women will later operate the aircraft, maintain them, develop innovative solutions and protect our skies and our land,” he told Radio Free Europe.
Idrizi believes that investments should also include training centers, aircraft maintenance hangars and innovation capacities.
According to him, these investments would help create local expertise and support the long-term development of the aviation industry.
Kosovo currently has no domestic air operator equipped with a certificate issued by the Civil Aviation Authority of Kosovo.
However, the legislation in force does not prohibit the creation of a company with public capital.
The Civil Aviation Authority confirmed to Radio Free Europe that a new airline must obtain an Air Operator Certificate and an Operating License before beginning commercial flights.
The certificate demonstrates that the company meets safety standards and has the necessary technical and professional capacities, while the license also requires compliance with financial and legal conditions.
An operator intending to conduct scheduled flights with large passenger aircraft must demonstrate that it can meet its financial obligations for 24 months and cover operating expenses for three months, without counting revenue from flights.
It must also submit a business plan covering at least its first three years of operations.
The Civil Aviation Authority does not provide a specific estimate of the cost of establishing the airline, emphasizing that this depends on the business model, fleet size and organizational structure.
The certification and licensing requirements apply regardless of whether the company is publicly or privately owned.
The idea of establishing a Kosovo airline is not new.
As early as 2017, during the government of Ramush Haradinaj, the possibility of developing a domestic air operator was discussed, known in the debates of the time as “Air Kosova.”
The government of that period had announced policies to develop air transport and attract investors to the sector.
Then-Minister of Infrastructure Pal Lekaj told Radio Free Europe at the time that the institutions would promote policies to encourage investment in the air transport market.
However, the initiative did not result in the creation of a licensed operator.
The idea later returned in LDK’s election program and has now become part of the commitments of the Kurti Government.
Whether it will be implemented this time will depend on the concrete steps the Government takes in the future.
