The new Jat

Government searching for “new Jat” partner
The Serbian Government issued a call for the privatisation of its national carrier Jat Airways, after which it will set up a new national airline with the strategic partner and close down Jat or turn it into a charter airline. In its call for bids, the government issued some new terms and conditions. Only airlines which have carried 1.5 million passengers in 2010 or financial investment companies associated with other airlines can participate in the tender. The cost of the tender documentation amounts to 10.000 Euros.

If the sale is successful, the new part owner will set up a new national carrier with the Serbian Government. The government will invest 400.000 Euros into the new airline and would own 51% of the shares while the other 49% would be held by the strategic partner that wins the tender. Talks with the tender winner would begin in November when it would be decided how the new airline should be called, among other things. The entire processes would be completed by the summer of 2012. Passengers wouldn’t be affected by the national carrier change. The aim of the new company is for it to be competitive with other European airlines.

The tender call was published yesterday in The Financial Times. Analysts believe the tender will fail and that setting up a new airline is a mistake. However, most agree that the government is serious in its bid to sell the airline. The Jat Airways workers union fears many will lose their jobs as a result. Some 1.100 people work at Jat Airways. If the tender does indeed fail, Jat Airways will continue to be the national airline.

Do you think anyone will answer the tender call? If yes, who?

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