JAT hopes to be sold before open skiee; Air India gives up

Belgrade: Serbia should sell off its flag carrier JAT Airways before an "open skies" agreement with the EU takes effect next year and lowers the price it will command, the airline's chief Nebojsa Starcevic said on Wednesday.
At present, Russia's Aeroflot and Iceland Air seem to be the only potential bidders. Air India has given up on JAT after their preliminary memorandum of understanding expired.
"The whole point is to complete the privatisation before the open skies. If the agreement kicks off, the price of JAT would decline," Starcevic told Reuters in an interview, adding that he thought the agreement signed six months ago would be ratified by summer 2008.
Still reeling from a decade of sanctions, wars and economic isolation during 1990s, when its entire fleet was grounded, JAT believes going private would help it rejuvenate its 20-year old fleet of 16 aircraft, which could cost as much as $500 million.
The government has hired Rothschild as financial adviser to propose the privatisation model and prepare the sale, which the government would like to start in December.
"Many Western companies had been approached. They were not interested. But they are worried that Aeroflot is," he said.
18/10/07 Gordana Filipovic/Reuters India

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