The GED investment fund, owner of Paravion, has unofficially put the portal up for sale for some time and was in advanced negotiations with an online agency from Greece, which had also proposed a sum. They, however, wanted to purchase only Paravion’s Romanian business, not the Turkish operations.
With losses of several million euros for its operations in Turkey, GED was forced to close Bavul once it was left without a buyer.
After closing Bavul, its losses were transferred to Paravion, at which point the Greek investor also withdrew from the race, refusing to assume these debts.
The agency confirmed that it entered restructuring starting August 8, 2017. The decision follows the dramatic decline of Paravion’s business in Turkey, through Bavul, amid political and security issues faced by Turkey in the last 12 months. Company representatives expect the agency not to be affected, as tourists can still book flight tickets, accommodation, and holiday packages on Paravion.ro.
Paravion also lost its IATA license, which allowed it to sell flight tickets directly from airlines.
Nevertheless, the agency will be able to continue selling flight tickets for any route, but will issue them through a so-called "consolidator" company from abroad.
Paravion is the first 100% online flight booking site in Romania. In 2016, over 175 million online flight ticket searches were performed on Paravion, averaging 20,000 searches per hour, and Paravion’s sales exceeded 440,000 flight tickets.
Source: Profit
Frequently Asked Questions
Why is the Paravion portal being sold?
Paravion is being sold following financial difficulties caused by its Turkish operations (Bavul) and the subsequent restructuring of the company.
Can I still book tickets on Paravion.ro?
Yes, the agency remains operational for bookings, though it now issues tickets through an external consolidator after losing its IATA license.
What happened to the deal with the Greek investor?
The Greek investor withdrew after Paravion absorbed the debts from its closed Turkish division, Bavul, which they were unwilling to assume.