Monday, June 20, 2011

Selling Jat to Aeroflot – take two

Government wants to sell Jat to Aeroflot … again
The Serbian Government will try to plug Jat Airways to the Russian national carrier Aeroflot for a second time in 3 years after it confirmed Turkish Airlines was no longer interested in acquiring the Serbian carrier. An unnamed government source told a local newspaper that the Serbian President, Boris Tadić, will promote Jat Airways to his counterpart in Russia on an upcoming visit to the country to take place sometime in the next few months. However, there is little hope the Russian airline would be interested, just like it wasn’t in 2008 when it was believed Aeroflot was going to buy shares in the Serbian carrier once it was put on sale. A planned tender for Jat’s sale, which was to take place in August, now looks unlikely. Not a single airline has replied to the government which sent out facts and figures about Jat to several airlines including Lufthansa and Turkish Airlines. According to the Secretary for Aviation, Miodrag Miljković, the tender will now take place “when sufficient interest is shown”.

The acting CEO of Jat Airways said earlier in the year that the airline must get new aircraft by January 2012. Most of Jat’s Boeing fleet, which is undergoing large scale overhauls at the moment, will be fit to fly for another year and a half before having to go for yet another overhaul in 2013, which is becoming extremely costly.

Aeroflot recently sold its Nordavia subsidiary and has also taken control over 6 other Russian airlines, including the country’s second national carrier, Rossiya, based in Saint Petersburg.

11 comments:

  1. Duchess of ShangayJune 20, 2011 at 9:09 AM

    Oh, when did our Russian "brothers" put their hand into the fire for us? (And I wish they don't!)

    Reading the article...I almost feelt sorry about JAT.

    What is the feeling when nobody wants you?

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  2. hahaha... thats right duchess. Im just sad about the fact that we do not have ideas and abilities for good organization and good work..

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  3. "Extremely costly" is nothing in Serbia while tax payers put many in that company. Russians are not fools to finance that broken company.

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  4. I think the solution fro Jat is so obvious and I`ve mentioned it several times here:
    It should be invested in hiring experienced aviation management, both top and middle. It is at the same time the cheapest, the most valuable and the most effective investment that may give a chance for recovery.
    But there is always a "but". But in this case means that this company is in hands of incapable and corrupted politicians, who will lose a dozen of posts for "their people" in such a case.

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  5. There is more of a chance that we can see SU buy JAT nowdays, as the carrier itself is a lot larger, has bigger ambitions and more cash!|

    They sold Nordavia because it all honesty it was a money hemorrhaging small time airline which Aeroflot just didn't really have any other option but selling off for somthing like $4 Million dolars or somthing! The carrier was also bringing SU's saftey record back down.

    Hope to see extra Governmnet funding and cash injections go into possible JAT takeover, along with the merger of Rossiya.

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  6. There is a real irony that this story appears on the first day of Europe's biggest airshow in Paris. Given the very real chance that *no* airlines from the exYU will announce new orders to replace fleets or expand highlights the disarray every single airline in the region is facing.

    Sooner or later, each of the airlines will have to face two truths:
    - their business models are financially unsustainable in the long term, and
    - political interference is now working to the detriment of growth and stability

    We read today about JU, you could "(insert any name here)" instead and the story wouldn't be too far from the truth. Sad? Definitely, but true.

    JUs fleet replacement must be done in the style of AR: leasing well-maintained 2nd-hand 73Gs until back on their feet to buy their own fleet. But the longer it is left, the more dire the situation becomes...

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  7. saga continues this summer....

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  8. If SU wanted it, JU would benefit a lot from the Sky Team.

    Unfortunately, it seams science fiction for the time being (or for good)...

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  9. @frequentflyer

    No problem, Air Koryo might soon take an intrest in this carrier then. hahaha

    JAT would have a fleet of Tupolev TU-204-300 aircraft and Sukhoi SSJ-100's! and a new communist livery :)

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  10. Another lie in the series and of course the failure to disabled people to be put on healthy legs. Funny and sad at the same time

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  11. JAT is the big airline that should have been split when YU became EX-YU. Although we are all related at least by emotion to the airline it is a company like any other. The bad part is also that it remains in possession of the state. Who knows, if it was not it might have gone under a long time ago or maybe a lot stronger airline at present. I think there needs to be a secret meeting among all EX-YU airlines (with representation from this website bloggers of course) to form a single airline with all of the assets that could be mustered and to divide actions according to contribution. This new airline could have the EX-YU network covered (not duplicated) and find few large aircraft to start overseas flights that would feed from the network. Just a crazy thought, sorry for the idealism.

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