Jat’s development strategy adopted
with changes

The development strategy which outlines Jat’s expansion within the next 4 years and strategies on how to decrease costs has been adopted by the Government of Serbia although there have been some changes to the original plan. The government has given the green light for various Jat offices to be sold around the world including some of its main offices in Belgrade. Although the Serbian Prime Minister was initially against this he made a compromise causing anger amongst Jat’s management and workers who are against the major sell off. The government hopes that Belgrade Nikola Tesla Airport will buy up Jat’s property and will allow Jat to continue operating in them as it has done so far. However the sell off will not provide the finances for the creation of a payment plan for the 800 workers that will lose their jobs in the company as well as the purchase of new aircraft.

By November 15 the Serbian national carrier will have to provide a list of all properties that are not essential for the airline. The properties will be sold by December 15, 2008. The government has ordered Belgrade Airport, the Serbian Petroleum Industry and Serbian Air Control write off any debt that Jat owes to them.

Officials have warned that if the development strategy is not implemented soon Jat will be seriously hurt by a handful of airlines that will begin services to Belgrade in summer 2009, including 2 low cost airlines. More news about these airlines and plans will be published on the blog within the few days.

NOTE: Soon a careful analysis of unserved destinations that could be profitable and successful from major airports in the EX-YU republics, with statistics and potential passenger flow numbers included will be published on the blog starting with Zagreb Airport this week.