Jat denies Air One interest
Jat Airways management has denied it was involved in privatization talks with Italian carrier Air One.
Tuesday, 12.06.2007.
20:36
Jat denies Air One interest
Jat Airways General Director Nebojša Starčević stated that besides Russian Aeroflot and Air India, certain foreign companies were also interested in forging a strategic partnership or purchasing Jat Airways stock, however, he did not wish to identify the companies in question.Starčević added that he expected the government to decide on the privatization model and a tender for the sale of Serbia’s national carrier by the end of June.
He speculated as to the possibility that the state might decide to keep a share in the company, the size of which would depend on the agreement with a potential partner and its investment plans.
Air India had sent a letter of intent to the Serbian government expressing interest in becoming Jat Airways’ strategic partner six months ago, while Russian Aeroflot recently submitted its interest to the government.
According to Infrastructure Minister Velimir Ilić, Aeroflot wishes to acquire Jat, keep all its employees, settle the company’s debts and renew its fleet.
Jat management for their part said that they signed a letter of intent with Aeroflot’s representatives in Sochi two weeks ago.
“Whoever buys Jat in the end will have to invest at least EUR 150mn. It seems like Aeroflot is prepared to do that,” Starčević said.
However, the Ekonomist Magazine warned in its weekend feature that Jat's director and minister for infrastructure were so far “the ones who talk about the company's privatization the most—persons who are not legally entitled to do so.”
“The managing board, which does have jurisdiction in the matter, is still silent. There is [still] no decision reached by the government, the Privatization Agency is also inactive, while experts warn that privatizing a carrier entails a strictly determined sequence of events, a precise plan and clearly defined roles for all participants,” the Ekonomist concluded.
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