Serbia’s Flag Carrier JAT Airways Mulls Asset Disposals To Pare Losses – Media

JAT is considering several options, which include halving its staff to between 700 and 800 and shedding some of its fixed assets, Blic (www.blic.rs) reported, not naming its source. 

Some 300 staffers have already volunteered to leave the company.

JAT Airways is likely to cut its loss to between 20 million and 25 million euro ($29.2 million-$36.5 million) under a worst-case scenario in 2009 after finishing last year 29 million euro in the red, JAT Director General Srdjan Radovanovic told local news provider EMportal (www.emportal.rs) in an interview last week.

The sale of assets is the only logical step as some of the carrier’s offices have become redundant after JAT began issuing electronic tickets, Blic said, adding that the carrier will have to clear the disposal plans with the government and the State Property Office.

The carrier may also ask the government to provide guarantees to local commercial banks and they, in turn, will loan money to JAT to renew its fleet, Blic added.

In April, local media reported that the average age of JAT’s 16 passenger jets is 20 years.

JAT is currently holding talks with Airbus to reach an agreement on a $23.5 million (16.1 million euro) advance payment on eight aircrafts made in 1998, Blic reported in a separate article on Tuesday.

Among JAT’s most valuable assets are a business centre and a 800 square metre commercial property in Belgrade as well as a traffic control and technical centre and a pilot training centre, Blic said.

JAT also has properties in London, Milan, Amsterdam, Ljubljana and Athens.

The carrier boarded 540,900 passengers in the first seven months of 2009, down 19% year-on-year, data of the Association of European Airlines showed.

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 government in Belgrade has said JAT will remain state-owned until it can attract a financially sound bid.

($=0.6853 euro)