Another privatisation failure

Only weeks after the failed privatisation of Serbia’s national carrier Jat Airways, its maintenance company, Jat Tehnika, has also failed to be privatised. The tender for the purchase of documentation for the privatisation of Jat Tehnika began on June 16. Despite the tender documentation being purchased by two Israeli companies – El Al and the Bedek Aviation Group as well as Malev Hungarian Airlines and a fourth company which has remained unnamed, none sent in an offer for the company’s purchase. Offers had to be sent in by October 27, 2008 and this was already an extension on a previous deadline. Jat Tehnika gained its independence from Jat Airways in 2005 after major strikes which paralysed the national carrier. It is 100% owned by the Serbian government. However unlike its old partner, Jat Tehnika is operating with a profit which is expected to reach 45 million Euros by the end of the year. The company’s value had been placed between 100 and 200 million Euros.

Yesterday the Jat Tehnika union responded with an ad in the Serbian national newspaper “Politika” blaming the government for the privatisation’s failure. The Serbian Privatisation Agency will officially announce the privatisations failure within the next few days. Only yesterday did it officially announce that the privatisation of Jat Airways had failed.