Wednesday, December 29, 2010

Jat to get 140 million Euros

Ending the Airbus saga
The Serbian Government has announced that it will give guarantees for a 140 million Euro loan to Jat Airways in 2011 for the purchase of 4 Airbus A319s and, as a result, solve the airline’s outstanding 12 year old order for 8 Airbus jets. Both Jat and the government have proposed to revise the original agreement from 1998. Instead of 8 aircraft, Jat would receive 4 and pay a further 140 million Euros, on top of the 17.9 million Euros already given to the European plane manufacturer. If Airbus approves the revised deal, aircraft should begin to arrive in 2012.

In 1998, the Yugoslav Government ordered 8 Airbus A319s for JAT Yugoslav Airlines, a deal worth 580 million American Dollars at the time. However, the order was seen as political stunt by the government at the time and Airbus was criticised for the extremely high price of the order. Furthermore, international sanctions forbid Airbus from delivering the planes and the aircraft did not fit into JAT’s fleet of over 20, mostly Boeing aircraft.

Just last month Jat Airways received a 51.5 million Euro loan. The airline will use part of the cash to finance the lease of 2 aircraft, most likely Boeing B737-700s. Last week, the airline withdrew the first 2 million.


  1. Do we know what the 2.000.000 were used for?
    Jesus Christ, this is so stupid. Why on earth would they order these 319s! So by 2012 their fleet should be made up of:
    10 733
    4 AT7
    2 737
    4 319

  2. If there is nobody in Serbia who knows something about civil aviation and how to run an airline why they do not outsource somebody?
    Beacuse what they are doing with JAT is really a shame.

  3. @ 1st anonymous: Remember the they can’t get rid of the Airbus (they tried that for the past couple of years but Airbus won’t let the) so they will have to get them sooner or later.

  4. If JAT is burdened with this order of A319, why cant they find somebody to take over the order. As far as I know A319 is selling very well and the demand is high.

  5. Did someone consider what would happen if they did the best move ever and close JAT for good. I\m sure the new airline would not have anything to do with that order.. But then again, this is Serbia, JAt is "tradition" (of what?!? corruptoion?)

    Fleet manegemnt - that's something left to be desired in Serbia. Aviation was once good here but now is a complete failure (and I just love the story "we have the best pilots" - yeah, we sawe that several times, last time in India...)

  6. They tried to find an airline to take over the order but Airbus didn’t want to hear about it.

  7. That's JAT saga.
    Regularly news about purchase or lease of B737-700 or Airbus 319 are comfirmed and one day later denied.
    I don't think that the Serbian Government might endorse 140 million Euros in favour of JAT. For the current overall economical situation in Serbia this amount is huge money.
    Should this news come true the new aircrafts would replace the old ones B737-300, not just added into the fleet.
    Still a balkan mentality...not yet a real modern management

  8. @ anonymous 5

    This is the typical mentality close down JAT somone Big like wizzair is gonna come and create a new successful serbian carrier this just complete rubbish, The Serb public need JAT, and so does Belgrade airport. If JAT were to become defunct there would be numerous issues.

    1) Prices would rise as airlines would have monopolies.

    2) BEG would become underserved and would have substantial losses.

    3) The Serbian Diaspora would become largely underserved

    4) Many of the lower/middle class families either in Serbia or of Serb diaspora would not be able to travel as they would not be able to afford it. As believe it or not JAT is the most affordable option for many. Im better of so money is not a problem for me but trust me if JAT became defunct there would be many issues.

  9. @ last Anonymous
    I agree that Serbia MUST have national carrier due to all reasons stated but the airline's management MUST be competent one! It's ok to have unprofitable political routes but it's not ok to have mainly unprofitable political staff. I'm also ok Serbia to support Jat until Serbia in EU so that can survive and not to be the feeder but they MUST create losses far less then 25 mil EUR per annum, otherwise...

  10. I agree that Serbia should have a national carrier. No one would expect that carriet to make huge profits like EK, LH or so....but at least we should get rid of huge losses, corruption, nepotism, unprofessionalism etc. and have a small niche carrier with 10-12 planes to serve the main points. To maintain huge office in places like NYC, Toronto and Sydney creates millions of losses just for the sake of employing uncles, aunts and political cronies.

  11. ........and this is by the way similar with Croatia Airlines. A lot of relative working, even at the same stations not uncommon to work husband/wife, father/son etc.....

  12. "As believe it or not JAT is the most affordable option for many."


    I got a return ticket to London (and I could choose time of day and airport in London) with Lufthansa for 150 eur. Please, get some information before you write something lije this.

    Jat is overpricing and far from the most affordable. People are using it because they don't know any better.

  13. By the way, what do you mean that airport needs JAT? JAT is in HUGE debts to everybody - airport, air traffic controll, etc. Ok, they gave Vrsac airport to Air Traffic control as they could not pay the debt but I don't think they can pull much more similar crap...

    JAT is in NO WAY needed in Serbia. That's a fact!


  14. @ last Anonymous
    Maybe Jat like this is not needed in Serbia but the national airline is! Otherwise we could face "Bulgarian scenario" which will mean that only people with lots of money can trip. In that way BEG needs national or huge domestic carrier. Even now, when Jat's traffic is around 40% at LYBE it is still needed since between 45-50% of all PAX travel by Jat. Ironic but true! JP has 8-9 mil EUR loss in 2010, 86 in last 10 years and the Government wants to shut it down. In here, JU makes 75 mil EUR loss in just 3 years and Government rewards it with subvention of 191,5 mil EUR (51,5 a month ago and 140 in 2011)!!!! Ironic, isn't it?

  15. There is NO truth to this "news". Where do you get this sh!t from?

    If it were true, it would have been reported on Airbus' website and in the broader international press.

  16. Why would Airbus announce that Jat has proposed to change their agreement? Airbus hasn’t actually considered the deal’s modification yet as can be seen in the article. As for the source, it has been reported in all Serbian media.

  17. Guys, JAT will never see a dime of this money. They will not see even that loan of 54M... There is no chance Jat will ever survive this new Year. Pure and simple reason. All persons in JAT that have knowledge of aviation and have a know how on running an airline hate what politics did to their company. They will never risk their retirement and involve themselves with jerk offs from government that will try to score cheap political points with them.


Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of EX-YU Aviation News. Thank you for your cooperation.