Serbia seeks investors for airline to replace JAT

Serbia opened the door to
investors for a new airline to replace indebted state-owned JAT
Airways with the launch of a tender on Monday.

Serbia had hoped to sell a majority stake in the
socialist-era giant to Turkish Airlines but no
agreement was reached. A first tender for the sale of a 51
percent stake in JAT, priced at 51 million euros ($73 million),
failed in 2008.

Eligible investors, mainly airlines and financial backers
with investment in airlines of at least 5 percent, must show a
consolidated balance sheet of more than 200 million euros and
the transit of more than 1.5 million passengers in 2010.

The tender expires on Sept. 30, the ministry said on its
website. No ministry official was immediately available to
comment.

Last November, the Serbian government chose consultant
Deloitte as adviser in the JAT sale and gave it a 12-month
deadline to analyse the company’s finances, find a strategic
partner and launch an airline by end-2011.

Last year, JAT Airways announced a 16.5 million euro loss
for 2009 and borrowed 51.5 million from the government to renew
its fleet and prepare for a potential partnership with Turkish
Airlines.

To cut losses, JAT in 2010 sold its headquarters building in
Belgrade to state landline operator Telekom Srbije for 10.3
million euros.

JAT operates a fleet of 15 aircraft.