Serbia to seek bids for flag carrier JAT Airways
16 Jun 2008
The Serbian government announced Friday that it would offer for sale a 51 per cent stake in JAT Airways (Jugoslavenski Aerotransport ), for a starting price of €150 million ($231.9 million). According to media reports, the tender will include an option to acquire up to 75 per cent of the airline.
"Anyone can bid, but bidders outside the EU will have to run in a consortium," Economy minister Mladjan Dinkic was quoted as saying. "Our main request is to keep JAT as the national carrier and keep the Serbian flag on it."
The non-EU bidders could possibly be Indian and Russian flag carriers Air India and Aeroflot, which, according to reports, had a run-off for acquiring the asset last year (See: Air India conducting due diligence activity with Serbian carrier JATnews)
JAT Airways turned 80 years old in June last year. It has an ageing fleet of 10 Boeing 737-300's and 4 ATR72 aircraft.
The airline, reportedly, has assets worth $150 million and carries debts totaling €209 million.
Along with the carrier, independent MRO concern, Jat Technika, will also be put up for the bid. According to press reports, the tender is set to be launched on 15 July.
