SOFIA Airport is planning to force Balkan Airlines to suspend operations on October 19 because of a 1 467 000 leva debt.

This was said on Tuesday by airport officials who attended a presentation of the new Russian TU 214 aircraft.

Minister of Transport and Communications Plamen Petrov confirmed that Sofia Airport had sent Balkan a second notice urging them to repay their debt.

"Any creditor could be expected to make such a request," Petrov said.

He said there were three plans for the future of the airline.

"The launch of a completely new Bulgarian Airlines company which will carry the national flag is one of the most commented-on outcomes for Balkan Airlines," said Milcho Milanov, Deputy Minister of Transport and Communications.

Hemus Air could also become a national carrier, Milanov said.

The third plan which is being discussed now for Balkan's future is its sale to another investor. There is already one application for the purchase of Balkan Airlines with both its assets and liabilities, Milanov said. A completely new Air Carrier is applying for registration at present.

"Variations are different but the State Receivables Agency, which is Balkan Airlines' main creditor, has the final word," Petrov said Monday.

Finance Minister Milen Velchev said last Friday the best way to protect the interests of the State and taxpayers would be to establish a new airline, which will replace Balkan. "Balkan's creditors may thus be satisfied to a larger extent than if the current situation is preserved.

"The State should not be financially committed to the future company any more than by virtue of the receivables which it currently expects to collect from Balkan," Velchev said.

"Balkan will continue to perform flights according to its schedule," the airline said in a release.

The carrier's relations with Sofia Airport are regulated and based on partnership.

In the past two months, Balkan had transferred 600 000 leva to the airport's bank account and was regularly repaying its debt.

"Balkan currently has sufficient funds to continue repaying its debts to partners," the release said.

The TU-214 aircraft arrived Sunday from Russia for Monday's presentation, BASA Aviation OOD told The Echo.

The event was part of a major initiative aimed at restoring the share of Russian aircraft in the world aviation market.

The TU-214 can carry up to 210 passengers and can fly 6 500 km without refuelling. It is considered the most promising project of the Russian aviation industry, according to BASA.

"Given the need to replace the outdated fleets of medium-distance-flight passenger airplanes in Bulgaria and the other Balkan countries in the following few years, the TU-214 is an attractive and realistic alternative for the air carriers in the region," according to BASA.

The TU-214 is of particular interest to Bulgarian air carriers currently performing regular and chartered flights with TU-154Ms, which are to go out of operation by 2006 because they do not conform to EU noise pollution standards.

Producers of the Russian aircraft consider Bulgarian airlines potential customers because of its price. A TU 214 costs $ 30 million, much cheaper than an American Boeing, air industry analysts said.