Air India denies interest in Jat Airways

Air India has no plans to buy Serbia's state-owned carrier Jat Airways, agencies reported. India's Civil Aviation Minister Praful Patel was quoted as saying that the Indian company has yet to decide on a proposal to form a strategic alliance. Air India denies interest in Jat Airways In June, a spokesman for the company said Air India was considering such an alliance with Jat, and could later bid for an equity stake if there was an agreement on the valuation and sharing of profits. Russia's Aeroflot have also expressed interest and are considered to be a strong contender in the race to acquire the Serbian carrier. Jat's ageing fleet currently consists of 17 planes for transport of passengers and cargo, including ten B 737-300, one B 737-400, five ATR 72-200, and one B 737-200. A study commissioned by Jat Airways and the Norwegian Foreign Affairs Ministry, produced by the International Financial Corporation (IFC), showed that the company posted EUR 54mn in losses from 2004 to 2006. The study, compiled in collaboration with Washington's Innova Aviation Consulting and Gide Loyrette Nouel from Paris, lists the company's problems as follows: obsolete fleet, insufficient utilization of means and low productivity rate, business practices from the past, lack of capital, continuous operative losses, high costs and low revenues. (Photo: EM Online)

Air India denies interest in Jat Airways

In June, a spokesman for the company said Air India was considering such an alliance with Jat, and could later bid for an equity stake if there was an agreement on the valuation and sharing of profits.

Russia's Aeroflot have also expressed interest and are considered to be a strong contender in the race to acquire the Serbian carrier.

Jat's ageing fleet currently consists of 17 planes for transport of passengers and cargo, including ten B 737-300, one B 737-400, five ATR 72-200, and one B 737-200.

A study commissioned by Jat Airways and the Norwegian Foreign Affairs Ministry, produced by the International Financial Corporation (IFC), showed that the company posted EUR 54mn in losses from 2004 to 2006.

The study, compiled in collaboration with Washington's Innova Aviation Consulting and Gide Loyrette Nouel from Paris, lists the company's problems as follows: obsolete fleet, insufficient utilization of means and low productivity rate, business practices from the past, lack of capital, continuous operative losses, high costs and low revenues.