Air Albania suspends operations 7 years since founding backed by Turkish Airlines

This comes after Turkish Airlines announced it would sell its 49% stake in the carrier last month.

Graz, Austria - May 31, 2024: Air Albania departing on a wet runway in Graz with an Airbus A320 aircraft to Tirana

Last month, it emerged that Turkish Airlines was looking to sell its stake in the troubled Air Albania. Owned 49% by the Turkish carrier, the public-private joint venture with the Albanian government and MDN Investment was meant to provide the country with vital air connectivity through a national airline.

At the start of December, the carrier operated its final flight. Just a few days ago, the airline’s operating license was revoked – meaning there are now no scheduled passenger airlines registered under the Albanian Civil Aviation Authority.

All air connectivity to the country will now come exclusively from foreign carriers.

Air Albania Airbus A319 aircraft at the airport
Photo: lial88 | stock.adobe.com

The competitive landscape in Albania is also challenging. Air Albania’s size coupled with the entry of low-cost rivals made the operation particularly difficult.

Air Albania ceases operations

Government sources told Albania’s Kapitali that the airline’s operating license was revoked “for failure to comply with civil aviation standards.”

The carrier is said to be in “deep financial crisis,” furthered by the withdrawal of Turkish Airlines. The removal of its operating permit was the final straw.

Air Albania was the country’s national airline, aimed at filling the void created following the collapse of Albanian Airlines in 2011. Albania’s Prime Minister Edi Rama unveiled the new airline in 2018 in collaboration with Turkish Airlines which owned 49%.

MDN Investment SHPK held 41%, while the Albanian government owned the remaining 10% through Albcontrol which oversees the country’s airspace. It began with a leased Airbus A319 from Turkish Airlines, and grew its network.

Graz, Austria - May 31, 2024: Air Albania company logo on the fuselage of an Airbus A320
Photo: Photofex | stock.adobe.com

It had been struggling a lot, though. It adopted a new strategy in early 2025 that included additional aircraft and new destinations including Brussels and Vienna for instance. Ultimately, its growth plans were not enough to ensure its success.

Its final flight was on 2 December from Istanbul to Tirana with an Airbus A321 registered LZ-FSH leased from Fly 2 Sky. Turkish Airlines is expected to open a new service to Tirana to fill the void.

The rise of low-cost airlines in Albania

Low-cost competition has contributed to Air Albania’s collapse. Wizz Air entered the market first in 2017, and has since grown considerably. In September, it announced it would be basing yet another Airbus A321neo in Tirana from next summer, bringing the total to 14.

In August, Ryanair announced that it would be opening a base in Tirana from next summer, with three based aircraft.

However, Albania’s airline industry has struggled over the last two decades, even before the arrival of based low-cost competition.

The country has tried, on several occasions, to successfully operate its own national airline. However, none of these attempts have been successful. Air Albania is the latest example, and follows the collapse of numerous Albanian airlines in the past as listed below.

Defunct airlines of Albania

Airline Ceased Type of airline
Albatros Air 2006 Low-cost airline (short-haul)
Ada Air 2007 Regional scheduled airline
Albanian Airlines 2011 International scheduled airline (flag carrier)
Belle Air 2013 Low-cost airline
Albawings 2024 Low-cost airline
Total airlines listed: 5

Wizz Air was already Albania’s largest airline. With the launch of Ryanair’s new base, low-cost carriers will undoubtedly control the market and will make future attempts to relaunch a national airline particularly difficult.

Featured image: Photofex | stock.adobe.com

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