Thursday, September 29, 2011

Time running out for Jat

Azerbaijan snubs Jat
Tomorrow afternoon the tender to find a strategic partner for the creation of a successor national carrier to Jat Airways will end. Not a single company has answered the tender call. On Monday, a delegation from Azerbaijan visited Jat Airways’ head office in Belgrade to get acquainted with the airline’s business. According to media reports, the Azeri Government is interested in taking over a part of Jat, rather than setting up a new airline, but would in return request shares in several other companies in Serbia and ownership over a future port construction project on the Danube. In the end, the Azeris did not purchase the 10.000 Euro tender documentation.

An unnamed source from the national carrier told the press, “No one has even purchased the tender documentation. We heard that the Azeris were interested but to be honest I doubt anything will come of it”. Economists and analysts blame the government for yet another failure to privatise Jat. They argue that it is illogical for a tender to seek for an owner of a nonexistent future national airline. Furthermore, it has been said that the eight party governing coalition has different views on what to do with Jat.

Over the past few months, it has been reported that the government is considering several scenarios for the airline following the tender failure which includes hiring a new professional CEO and providing state guarantees for a loan to purchase four new jets in January 2012. Another possibility is for the government to extend the tender as it lacks a definite strategy for the carrier. Nevertheless, the State Secretary for Aviation firmly denies that there is no interest in the loss making state airline. Meanwhile, the Privatisation Agency has once again delayed the auction of Jat Catering, which was originally scheduled to take place in early September and then moved to last Friday. Since there is absolutely no interest, the auction has now been rescheduled for November 11.


  1. Recycle...again. There may not be news to report every day, so it's better to skip the day sometimes.

  2. No interest even to buy documentation of Jat tender shows:

    1. what management did from company that had reputation, big fleet, free slots, planes and buildings (which all republics of Yugoslavia paid for and Serbia gets it for free)

    2. That fleet is so old and company has no potential at all.

    3. Even new company without old fleet, but with expensive slots can not attract any investors even from Azerbaijan.

    4. That there is low interest in Serbian air traffic.

  3. I just want to give thumbs up to this site for allowing all of the comments to be shown right away. Maybe you would like to reconsider your politics about comments, I am tired of people here behaving like 12 year olds living in past century.

  4. As someone already said: nothing will happen till the elections come. JU will continue to slowly but steadily fall apart...

    We'll see...

  5. Guys, you don't need to be so negative.
    Why couldn't JAT become profitable in a few years? If they lease some newer a/c (and the ones that they have are not so horrible), fire all politicaly appointed people, don't steal so much, they could be really good.

    Does anyone has information on which of the JAT's routes are profitable? I feel like ton of promo campaigns this year have brought up LF significantly - majority of the flights I've been on were full or almost full...

  6. JU, OU and JP should merge in a private company for Balkan market under Staralliance group!

  7. ^Don’t think that will be happening anytime soon. Croatian PM just a few days ago in her campaign said how she will never allow the Yugosphere to return.

  8. There is no interest in Star Alliance for JU.

    Unfortunately there is no interest in any alliance for JU.

    Why, on earth, would JP and OU merge with JU. Same market, and to merge with company which is in much worst position than OU and JU.


    There is no interest in Star Alliance for JU.

    Unfortunately there is no interest in any alliance for JU.

    Why, on earth, would JP and OU merge with JU. Same market, and to merge with company which is in much worst position than OU and JP.

  10. as long there is soo many hurdles when doing business in the ex YU, mainly airline biz, no one is interested to invest money. investors wanna earn money and not loose nerves with bureaucratic munsters.

    I will re-write it again. How much longer the people in charge in the Balkans intend to waste time? Actually those in charge don t waste time, every day the situation is unchanged their pockets get filled.... that s the problem....

    maybe u need a french revolution??

    Optimista: of course the ex YU market with the great coast, the potential of economical growth AND diaspora traffic is interesting and has potential but not under such circumstances. Look at Adria, 75% market share at LJU and still doing losses....they even did loose on charters....imagine, how can an airline loose on charters where all the responsability is transferred to the travel agents who pay and sell these charters

  11. @Optimista

    The reason that we are so negative is that, although we agree with your idea to "fire all politicaly appointed people, don't steal so much" there is little will to make that happen.

    The ex-yu citizens have become indifferent because as much as they pushed for change nothing happened. The nepotism that is prevalent in government and businesses seems so entrenched that it is nearly impossible to change (at least until all companies are run into the ground and worthless).

    I think also we look at Jat with nostalgic eyes and fail to realize that bigger airlines have failed and dropped from existence (e.g., Pan Am). It is sad, but unless there are major changes, it is inevitable. Perhaps just the name can be sold without any baggage (management, equipment, employees)? Then possibly an investor can create an airline worthy of the name.

  12. Excuse me people ,especially those from Serbia,but the main reason that there are those corrupt politicians in Serbia is that you all have voted for them !

    You voted them because they bear the the name"Democratic" in them,because they promised they will make Serbia to a modern, European,democratic,liberal and
    human rights respecting country.

    A country which wants to join the
    European Union...but most important ..because the will improve economy!

    So you voted them...
    what did you get ? NOTHING !
    The opposite...everything gets worse!

    The only thing you can do then...
    next time vote the others !

    This is normal practice in every modern country...

    Maybe these other parties call themselves "nationalists" ,etc.
    ...but in the end they will do it
    the SAME or EVEN BETTER then the
    so called "democrats" !

    At the end Serbia as in Germany or UK...names are nothing
    ...what counts is Contents !

    If you are whinning about
    politics...but every time then vote for them again....then the
    main problem is obviously YOU !

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  14. DOot...even if you be right,
    all the other countrys in world are not better.Look USA..EU,wherever
    you look ..institutions are
    failing ,
    politicians are corrupt.
    This is a universal problem!
    Unfortunately Szerbia is in this way a total normal country...
    European standards?
    Look EU and its big problems,
    nothing better ,even same misery!
    How I can look down to other
    people if I be not better?

  15. This comment has been removed by a blog administrator.

  16. Main problem in Serbia and other
    countries is that a lot of economy is owned by the state.

    The goal of such a government is
    the private economy !

    Destroy the concurrence- destroy the private economy-ruin the country.

    The same this state economy ruined Yugoslavia the same it now ruins Serbia!

    Of course there is a solution!
    The government should sell ...or if theres no interest...close
    all its companies!
    Only the infrastructure remains state owned...because it is paid by the taxpayers!

    Sell or close JAT! Only BEG airport should remain state owned!

    Let the private economy do it
    without state interfence!
    So does it every prosperous country!

    And dont come with that balkan thing!
    Everywhere the people are the same
    ..if you say the opposite you are
    possibly seeking a scapegoat !

    As more politics involved in business so more corruption!

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  18. You're absolutely right, Anon.

    But, why should the government keep the airport?

    Name 1 successful country where the government owns the airport.

    How is it more efficent for the government to own the airport and all that that entails (hire people, manage them, manage the day-to-day everything) to just charging a tax for its use?

  19. @Doot:

    Most of the major European airports are still directly or indirectly majority state owned (although often being publicly listed) - similar case being e.g. BEG.

  20. Airports are owned by state in
    most cases ,but the airport operators are private businesses who have a contract with the owner which is the state.

    Correct me please if im wrong:
    Skopje airport especially runway is
    government owned.
    TAV has a contract with airport owner...the state... for being operator .

    But they have to build the new terminal ,
    which is as long property of TAV till
    ...all the expenses for building airport are earned back provision !

    After that terminal will become property of the airport who makes a new contract!

    So both win: TAV and airport !
    What do you think?

  21. I didn't know that TAV didn't own the airport, but just has a concession for 20 years. I just looked it up.

    Yes, I agree. I was in Skopje airport a few weeks ago. excellent example of a successful public-private partnership.

    I also didn't know that most airports are owned by the government but managed by private interests. I stand corrected.

  22. offtopic:

    JP4000 LJU ZAG 04:00Z 04:30Z

    Purger: S5-AAT A320 leaves 03OCT LJU for ZAG and remains there. Do you know if only parked in ZAG or transferred to OU?

  23. It is amazing how this blog turned to field for spitting Serbia, Serbian people, Serbian society... led by recognized and proven Serbian hater Doot!

  24. Well yes, if you look at SKP, TIA or PRN these are concession examples, but if you look at companies operating e.g. CDG, FRA or IST these are all publicly listed joint stock companies majority owned by governments.

  25. This comment has been removed by a blog administrator.

  26. @Doot:

    What does your hate for Serbia have to do with Ex-Yu AVIATION news? If you want to provoke, insult, condescend -- great, go to one of the political forums and go wild. But this board is dedicated to AVIATION news -- not hurling invectives about an entire country and an entire nation.

    You state that you hate Serbia. So you don't hesitate to publicly stereotype an entire country or an entire nation? Go to a neo-fascist web site and post your drivel there -- not here.

  27. This comment has been removed by a blog administrator.

  28. Deadline extended to 31 October.

    A lot of malicious reporting occurred past 2 months in the press, plenty of people spreading false news...

  29. Extende - why? To make shame of them one more month?

  30. you went a little overboard in deleting me mr. moderator. Apart from my last remark, I didn't make substantially different points than many in this thread.

    You can't talk about what's wrong with JAT without talking about what's deeply wrong with Serbia as a whole, which is what people are doing in here.


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