Jat Airways privatisation: Starting price 150 million Euros

The minister of the Serbian economy and regional development Mlađan Dinkić announced today that the tender for submission of offers for the purchase of Serbia’s national airline, Jat Airways, will open around July 15, 2008. The starting price of the Serbian air carrier will be 150 million Euros although reports suggest that Aeroflot, the most serious contender for the purchase would buy Jat for 350 million Euros and invest further millions in fleet rejuvenation, debt pay off and the end to the 12 year Airbus order dispute. Dinkić said the sale will initially cover 51% of the airline's shares. That percentage may be increased to 75% on the outcome of talks with the buyers

Jat assets
Jat Airways has ownership of 16 aircraft. Furthermore it has 30 offices outside of Serbia (including New York, Toronto, Sydney and Beijing) and 10 offices inside Serbia. It also owns the pilot academy in the Serbian town of Vršac and buildings and storage areas at Belgrade’s Nikola Tesla Airport. It is estimated that Jat’s assets in Croatia are worth at least 12.5 million Euros. On the negative side Jat owes the Paris and London investors club 209 million Euros. The airline has 1.811 employees. Until recently it also owned 3 hotels in Belgrade, hotel in Vršac and a hotel in the Serbian mountain town of Kopaonik together with its catering provider Jat Catering although these were made independent a few months ago following the decision on behalf of the Government of Serbia.