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Serbian Government considering splitting JAT Airways

9-Apr-2010 12:07 PM

Serbian Government stated it is preparing to split JAT Airways into profitable and loss-making components, under efforts to attract a strategic investor to the company (Reuters, 08-Apr-2010). Under draft plans, a new company, JAT Air, would reportedly continue to operate profitable routes, while JAT Airways would remain and take over the firm's debts and obligations. JAT Airways reported a loss of EUR16.5 million for 2009 and plans to borrow EUR51.5 million for restructuring and fleet renewal. The carrier is currently attempting to attract Turkish Airlines for a partnership agreement. JAT Tehnika, the carrier’s MRO unit, was hived-off in 2005 and is also seeking a strategic partner.