Jat Airways privatization process kicks off

The Privatization Agency has called on potential buyers to express interest in the privatization of Jat Airways. According to information on the company published in the Belgrade daily Politika, at the end of 2007, the national carrier had assets worth EUR 162.64mn – EUR 3.6mn less than in 2006, and EUR 247.39mn in debts, a drop of EUR 15.8mn compared to the previous year. Jat Airways privatization process kicks off However, this report has not been confirmed by an independent auditor. On July 21, the government adopted a document on the strategy for privatizing Jat, which was developed by privatization adviser Rothschild, along with a decision for turning the company into a closed shareholder society, at the same time converting its debts into state capital. The only shareholder is the state, while the capital was written in on June 30, 2008, is worth EUR 185.7mn. According to the Open Skies Treaty, the majority owner of Jat Airways cannot be a company that is not registered either in the European Union or Serbia. The Serbian company has nine Boeing 737 airplanes on its fleet, active since 1985 and 1988, and three ATR 72’s which have been used since 1990 and 1991, along with 31 other aircrafts in the pilot academy and 24 in industrial aviation. By mid- July this year, according to a statement from the company, Jat had over 700,000 passengers. The carrier also owns 76,931 square meters of premises, including a technical center of 3,468 square meters, a school center of 3,736 square meters and buildings for flight operatives of 2,224 square meters, according to the company data. Jat Airways owns 3.82 million square meters of land, of which 3.5 million is slated for construction, and employs 1,838 people, 486 of which have university degrees. State Secretary Nebojsa Ciric said earlier that there have been a number of companies interested in the acquisition, including Aeroflot, Air Iceland and Air Berlin, but that it is not known whether these companies will participate in the tender. The potential buyers now have two days to send their letters of interest.

Jat Airways privatization process kicks off

However, this report has not been confirmed by an independent auditor.

On July 21, the government adopted a document on the strategy for privatizing Jat, which was developed by privatization adviser Rothschild, along with a decision for turning the company into a closed shareholder society, at the same time converting its debts into state capital.

The only shareholder is the state, while the capital was written in on June 30, 2008, is worth EUR 185.7mn.

According to the Open Skies Treaty, the majority owner of Jat Airways cannot be a company that is not registered either in the European Union or Serbia.

The Serbian company has nine Boeing 737 airplanes on its fleet, active since 1985 and 1988, and three ATR 72’s which have been used since 1990 and 1991, along with 31 other aircrafts in the pilot academy and 24 in industrial aviation.

By mid- July this year, according to a statement from the company, Jat had over 700,000 passengers.

The carrier also owns 76,931 square meters of premises, including a technical center of 3,468 square meters, a school center of 3,736 square meters and buildings for flight operatives of 2,224 square meters, according to the company data.

Jat Airways owns 3.82 million square meters of land, of which 3.5 million is slated for construction, and employs 1,838 people, 486 of which have university degrees.

State Secretary Nebojša Ćirić said earlier that there have been a number of companies interested in the acquisition, including Aeroflot, Air Iceland and Air Berlin, but that it is not known whether these companies will participate in the tender. The potential buyers now have two days to send their letters of interest.