Intrigue, disagreements surround JAT privatisation

The privatisation of Serbia's JAT Airlines has been subject of domestic and international curiosity for months. The airline, the national carrier of Serbia, is 100% owned by the government. A privatisation tender is expected to be called by the end of the year.
The government, however, is split over the sale. Deputy Prime Minister Bozidar Djelic has come forward and said part of the airline should remain in the hands of the state. But other ministers want the government to be rid of the company altogether, and the sooner the better.
A consortium -- led by US bank Rothschild -- was appointed last month as privatisation adviser. The group is under a 1m-euro contract to counsel the government on the best way to conduct the sale.
Official interest in the airline has been expressed thus far by Russia's Aeroflot, while Air India is interested Southeast European Times in establishing a joint venture company with the Belgrade headquarters. However, the possibility of the Russians entering the Balkan market has raised eyebrows at the European Commission, which is worried about giving a company from outside the EU an entry point into the bloc.
Under the Open Skies Agreement, all European airlines will receive equal treatment in signatory states, starting next year. Serbia has signed the agreement, but has yet to ratify it. If Aeroflot were to buy JAT, and Serbia were to ratify the accord, the Russian company could freely fly across Europe and be protected on home territory.
04/10/07 Southeast European Times, US

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Categories: Air India - International Oct 2007, Foreign Oct 2007, NACL Oct 2007, New Oct 2007