September 17 (SeeNews) - Serbia’s troubled flag carrier JAT Airways needs to increase the number of passengers it transports to 1.50 million a year from current 1.36 million as part of a new cost-cutting plan which the company's new management has proposed to the government, JAT said on Thursday.
The company plans to increase the cost effectiveness of its operations by improving its traffic organisaiton through adapting flight schedules to the needs of passengers and to the flight schedules of other airlines, the state-owned company said in a statement.
JAT plans to improve the quality of its services and introduce new services in an effort to make travel easier, it said in the proposal presented to the government on Wednesday. The air carrier also plans to beef up its presence in Southeastern Europe and cut expenditures by disposing of secondary units.
JAT, operating a fleet of 16 aircraft, is the region's laggard with an occupancy rate of 60%.
The company also plans to halve its staff to between 700 and 800 and shed some of its fixed assets. Some 300 staffers have already volunteered to leave the company.
JAT Airways is likely to cut its loss to between 20 million ($29.5 million) and 25 million euro under a worst-case scenario in 2009 after finishing last year with 29 million euro in the red, JAT Director General Srdjan Radovanovic told local news provider EMportal (www.emportal.rs) in an interview last week.
A tender for the sale of 51% of JAT Airways at a call price of 51 million euro failed last year as no bidders turned up. The government in Belgrade has said JAT will remain state-owned until it can attract a financially sound bid.
($=0.6784 euro)