Jat cuts back on employees and lines

Jat Airways plans to decrease the number of employees, lines and foreign representation offices and acquire two airliners.

Izvor: Beta

Monday, 08.01.2007.

17:32

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Jat cuts back on employees and lines

Starčević adds that Jat Airways intends to use 14 airliners this year.According to international standards, 1,000 employees correspond to 14 airliners. However, Jat Airways employs 1,700 people and does not intend to drastically decrease the number. Jat also plans to invest 50 million dollars in acquiring two airliners, with the capacity of 70 seats each, end expects to gain the government’s consent for such action.

Jat airways awaits word from government regarding  its future status. The company could end up privatized, but may also keep its 100 percent state-owned status. The third option is finding a strategic partner.

Jat has begun drafting it business development plan, which depends on the future company status.

“Privatization and strategic partnership will save Jat. The company has already embarked on finding a partner and established co-operation with Air India”, said Starčević, adding that Jat Airways and Air India signed a Letter of Intention to establish a joint company seated in Belgrade and finalize the agreement on mixed ownership deal in the next couple of months.

Both companies are state owned and will have to seek consent from their respective governments to validate the agreement.

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