Barred from its office, Bexx Air is operating from an internet cafe

Economic police last week shut down the offices of Bexx Air, arguing that the firm was operating without a licence.

Bexx Air, which offered tickets to Germany and Belgium from 50 euros (�34; $61), says it is being victimised.

"The action against Bexx Air and its cheap tickets was illegal," insists company chief Dirk Wiesemann.

"We will prove this in court and claim for losses above 5.2m euros."

In a message to clients, posted on the company's website from a Sofia internet cafe, Bexx Air management says flights will resume on 8 November, and that the 900 ticket-holders left without flights will be compensated.

Off licence

Bexx Air has dropped hints about running into opposition from vested interests in Bulgaria.

In particular, the company has cited the national travel-agents' association and state-owned Bulgaria Air, whose fares to Western Europe are usually 200 euros and more.

The government, however, says the decision to close Bexx Air was strictly legal.

Dimitar Dimitrov, a spokesman for the transport ministry, points out that Bexx Air lacked any of the four possible types of licence necessary to operate a legitimate tourism business.

"If they want to become legal, we'll do everything possible to help them," he says.

"We'll skip all the bureaucracy."

Different strokes

But Mr Wiesemann argues that Bexx Air should not need any kind of special licence.

His firm is a peculiar one: it does not own or lease planes, instead chartering jets from its local partner, Hemus Air. It sells tickets online and through a tiny telesales operation.

The ministry insists it does not have any particular problem with unconventional tourism businesses, but said it had been tipped off by hundreds of customer complaints about Bexx Air's services.

In general, bureaucratic difficulties have hindered the growth of budget airlines in Eastern Europe, in theory a region of strong potential.

So far, only three airlines have made a mark - Poland's Polonia, Wizz Air of Hungary and Slovakian SkyEurope.