Turkish company with 49 % stake in Air Albania

A tripartite agreement adopted by the Albanian government on 11 September and published in the Official Library on Wednesday paves the way for the founding of the company Air Albania, which, according to the government, will soon begin flights from Rinas Airport.

The agreement says Air Albania will be owned by Turkish Airlines, 49%, state air control company Albcontroll 10% and the company founded in Vlora MDN Investment at 41%. The company, according to the decision, will have a founding capital of 100,000 (about 800 euros), while all three partners commit to financing society within five days of the founding to 200 thousand USS.

The deal also gives Turkish company Turkish Airlines disproportionate management power compared to the stake quotas available while granting the administrator the right to propose, which must be approved by the shareholders' assembly. The right to the proposal belongs to the Turkish shareholder, who has a 49% stake, despite the other two shareholders controlling the mere 51% majority share together.

The society's first manager, under the approved agreement, will be Turkish national Sinan Dilek.

Prime Minister Edi Rama announced in March this year that Air Albania would begin flights in the summer of this year.

Albanian deputy “Air Albania” promises flights within summer

But the deal reached in September says the company will not start operations immediately, but will have to reach two more agreements within the next two months.

<x) The USSD within five days of its founding date, to cover society's operating costs,” is said in agreement. “To avoid misunderstandings, Air Albania will not start flying until the access of documents referred to in Article 27.2 of this agreement,” is written in agreement, without explaining what misunderstandings are.

Article 27.2 says the parties will change the agreement through two other documents, while the Council of Ministers must approve these two documents within 60 days.

Agreement also says if “MDN does not meet its obligations under this agreement... The Council of Ministers will replace MDN with a new partner accepted by Turkish Airlines”. It is not clear why the agreement prejudges the possibility that MDN will not meet its obligations. MDN was founded in Vlora on May 3, 2018. Its original shareholder, Sinan Idrizi, has so far conducted several trade-off transactions, while the company is currently owned half by Najada Idrizi and Rayana Idrizi, while Sinan Idrizi is its manager.

In July, Idrizi sold 77% of the quotas for 77 thousand euros to Rayana Idrizi, Najada Idrizi and Ron Yeeffet. But on August 23rd, Idrizi and Ron Yeeffet sold their quotas to Rayana and Nayada Idrizi for 46 thousand euros. The value of transactions is equal to the quota of stock capital defined in the act of establishing MDN Investment.