Greece's Marfin Investment Group Eyes Serbia's Troubled Flag Carrier JAT Airways - Media

The company’s aim is to fold together JAT Airways and troubled Greek Olympic Airlines, which MIG bought from the Greek government for 177 million euro ($265 million) earlier this year, Blic (www.blic.rs) quoted unnamed Serbian government sources as saying over the weekend.

After acquiring Olympic Airlines, it was only a matter of time before MIG decided to expand, the sources said. MIG already bought 50% of Swiss-based Ambulance International Rent-a-Jet for 15 million euro earlier this year, Blic said.

MIG is present in Serbia through Serbia's Marfin Bank AD Beograd. A consortium comprising MIG and Serbian firm Verano Motors owns the country’s largest local department store chain Robna Kuca Beograd.

Serbia is seeking a strategic partner or some other turnaround option for loss-making JAT Airways, Infrastructure Minister Milutin Mrkonjic said last month. A tender for the sale of 51% of JAT Airways at a call price of 51 million euro failed last year as no bidders turned up. The Serbian government has said JAT will remain state-owned until the company can attract a financially sound bid.

JAT Airways, which aims to turn to profit in 2011, posted an 18.7% annual drop in the number of passengers it carried through September to 744,300, the Association of European Airlines (AEA) said earlier this month.

($=0.6678 euro)