Aeroflot offers to buy JAT Airways

29 May, 2007:

Serbian national airline JAT Airways has a potential suitor. Reports said that Russian airline Aeroflot has made a concrete offer to acquire JAT Airways.

According to Serbian Infrastructure Minister Velimir Ilic JAT has received an interesting proposal and it comes from a Russian company, Ilic said in an interview with a Belgian daily.

While making the offer, Aeroflot has said it would keep all JAT's employees, settle the debts of the company, buy new aircraft so that JAT will reemerge and operate as one of the major companies in Southeast Europe.

Aeroflot is not the only company who is scouting for the Serbian national airline. A number of other interested buyers have made offers and the Serbian government will decide if Aeroflot can be a full owner or hold only a portion of JAT's stock.

Speaking to a newspaper, Ilic admitted that privatization would be the best solution for JAT since the company itself cannot afford new planes. He said that the government should decide on the terms of JAT's privatization by the end of June.