Jat Airways presented the consolidation plan to the Serbian Government

Direct News Source

18-Sep-2009 Jat Airways presented to the Serbian Government the Draft of Measures for further operation that will allow Jat Airways to regain its position as the regional leader in air transport.

The Draft represents a consolidation plan of the Company and defines the ways and measures for accomplishing this strategic goal. The Draft of Measures is based on the most important parameters regarding Jat Airways operation during the previous period and the analysis of the situation at global and local markets. It defines basic business guidelines, sets precise measures in order to increase revenues and decreases losses, and deals with the issue of rejuvenation of the fleet, finds the way of attracting new passengers, improving the structure of the employees and other measures oriented to service upgrading.

The Draft stipulates that in order to accomplish the positive operation it is necessary for Jat Airways to carry at least 1.5 million passengers per year and concludes that this is manageable with the current fleet of 16 aircraft, providing that all of them are airworthy. Jat Airways sets out three ways of acquiring more passengers – better organization of traffic by adjusting the flight schedule to the needs of its passengers and its consolidation with the timetable of other companies, upgrade the quality of service on all levels and introduce additional services which will make flying easier for the passengers.

Intensive marketing at regional markets is planned, as well as joining one of the air carrier alliances. Singling out some organizational units which do not belong to the Company's core business, reorganization, establishing own maintenance operations, more rigorous financial discipline which will be enabled by the introduction of the state-of-the-art ERP software are some of the measures suggested as a possible way of decreasing the losses. "Having in mind that the situation is difficult, so are the suggested measures. However, they are necessary and imply complete reorganization of the Company.

In the following year, with the support of the state, our goal is to make all aircraft airworthy and carry the number of passengers which would allow operation with profit", says Srðan Radovanoviæ, Jat Airways Director General. "We are here for the passengers, the state and the citizens, and we have responsibility to all Serbian citizens and to the Serbian Government as well as to our passengers and business partners. Our wish for the future is to create a modern company based on the modern management approach that successfully takes part in the market and creates profit", explained Radovanoviæ.