Tuesday, April 6, 2010

The new Jat

Government plans for Jat sell off
Over the weekend, Serbia’s Prime Minister Mirko Cvetković said that the Government is working hard to sell the country’s national airline – Jat Airways. As the Beta News Agency reports, during this month the Government will decide upon the best way in which to sell Jat. It plans to create a new company with a similar name, either Jat Air or Jat Airlines, which would take over all of Jat Airways’ operations, aircraft, employees etc. The new airline, with a slight name change, would not inherit Jat Airways’ debt and therefore would have its balance sheets clean. With a clean financial record the Government would then sell the new Jat to an interested party. Cvetković believes that this is the only way Jat could entice buyers. This proposal might be in front of Government ministers at one of their weekly meetings this April and the groundwork preparation for the new airline could begin in May, Beta says.

Nevertheless, Jat Airways will go ahead with obtaining a 51 million Euro loan, which it eventually might not even have to pay back as it would stick to the old airline.

Competition is now becoming fierce in the Serbian aviation industry with a dozen new airlines beginning services to Belgrade in the past few months. Yesterday, the Serbian Civil Aviation Directorate said that a popular low cost European airline has acquired information about Belgrade Nikola Tesla Airport. The Directorate said it did not wish to reveal the airline’s name as it has not applied for a license yet.

17 comments:

  1. Greek model, the best way to get rid of JAT.
    and why are they still trying to keep the name JAT? Jat Air, come on... don't be ridiculous. if they like that JAT abbreviation so much, then they should call it SAT Serbian Airlines (like JAT used to be called), and not Jat Air, Jat Airlines etc.

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  2. @Nikola
    It's not JAT, but Jat. Don't know if you noticed it but it has been changed with the 'successful' rebranding back in 2003.


    I think the name should be kept. It has a tradition and is known (for good and for bad). It has been around since 1947, that is more than most of the airlines today (lufthansa included). The only name that I could agree with is AeroPut. Back to basics.

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  3. Fingers crossed for new Jat and for new low cost carrier coming to Belgrade apt! :D RyanAir? AirBerlin? easyJet? :D :D :D

    Cheers!

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  4. I want to see Australian nostalgics' tears in this thread, please.

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  5. I hope this will happen, but I am not optimist, according to previous experience in 2008 privatization, which was purposely aborted.

    @Nikola

    Jat is a brand and doses not represent Yugoslavia or something else negative, so in my opinion Jat Airways was a great option for the name of company.

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  6. This is actually interesting. I would like to see how it turns out. If it works out well, I plan to get myself in sh*tload of debt, then just change my name slightly and start all over again.

    Come on, can these people get serious about anything? All it is going to be is a re-branded sh*t. You're still going to face the same fundamental problems (poor management, horrible service, old planes). The only thing that will be different is that this time when they lose another $20 mil, they will say "Yeah, but we're now only $20 mil in debt. Last year, we were down $150 mil. So, actually we posted $130 mil in profits" (don't laugh, their chief accountant is a high-school graduate).

    P.S. Name change is the least of their worries.

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  7. "P.S. Name change is the least of their worries."

    isn't that classic Serbia though?

    You've got a country that has:

    1) unsolvable problems

    2) problems that are solvable, but not without great societal pain.


    or.... you can change 1/2 the street names after the next election.

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  8. I will not comment about the name, I am more excited about that LCC which is to come to Surcin :-)

    My God if it's FR hereeeeee I comeeeeeeeeeee :-D

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  9. :))))

    one question for EX-YU aviation - do you know at least does that LCC plan to commence just one route or maybe something bigger? :D

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  10. I will shoot myself if it is Ryanair...
    But anyway I know the chances of that are 0%!
    I think it's rather Easyjet, after all it will be their second serbian destination.

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  11. @last Anonymus

    Why would you "shhot" if it was FR? How many time have you actually used that company?

    I have flown with them so many times in the past two years and for money I pay i have no complaints at all!

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  12. 0. Successful airline with reputation;

    1. use the airline to finance "governing" party, and its leaders and friends;

    2. make huge debts, and don't invest a thing;

    3. state buys all debts, and invest some more money;

    4. sell the company - use that money for pensions and political campaign;

    5. have a "successful" flag carrier, under "private" or other state ownership;

    6. if (when) it gets into crisis, buy back the airline and all of its debts (as they're doing now with other companies, PKB, etc.);

    7. go back to step "1.".

    Is the problem in state ownership, or ownership as whole?

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  13. There are CONDOR/THOMAS COOK posters all over Belgrade so maybe they are the one who will commence new flights to various destinations :D
    I don't know why would they be doing their advertising unless they are planning to make some serious business... :D I wouldn't say it's just some travel agency...

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  14. Here's why this proposed Olympic Airlines model won't work for JAT.

    The upper management wasn't kept on due to the new owners coming in at OA, and a new, smaller fleet was used from day 1. The Serbian Govt is neither financially able to, or strong-willed enough to do either.

    The best thing the Govt could do is buy half-a-dozen of OAs now-unused 734s: not only are they over a decade younger than most of JUs fleet and more fuel efficient, but they will allow the airline to grow capacity.

    And, if they were *really* adventurous, they'd buy those 5 almost-new ATRs off China Southern to replace their current ones.

    @ Doot

    I don't think its just nostalgic Australians on the forum, nostalgia runs pretty high across the board for some odd reason...

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  15. Why would you "shhot" if it was FR? How many time have you actually used that company?

    I have flown with them so many times in the past two years and for money I pay i have no complaints at all!

    I have taken them a few times, they were the only option at the time. I will never take them again. Thank God I have enough money to fly on a decent airline.

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  16. @JU500
    The Condor and Thomas Cook adds are just for a travel agent. Last year they used TAM.

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  17. it's probabliy WindJet, that will start flights to Palermo (that's what i've heard)

    ReplyDelete

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