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Aeroflot Won’t Fly the Serbian Skies
A tender for the purchase of the Serbian airline JAT Airways was announced yesterday. Aeroflot was expected to be the main contender for the airline but, kerosene prices being what they are, the prospect of saving the airline, which has an aging fleet and $385 million in debt, is no longer of interest to it. The Serbian government is selling 51 percent of the airline, with the possibility of subsequently raising that share to 70 percent. The Rothschild investment bank is serving as consultant in the deal. It assessed the controlling share in the airline at no less than ˆ51 million ($80 million).
Applications are being accepted through September 26 and competitive offers through October 24. Qualifications for participation are that the bidder be a certified air carrier with passenger flow of not less than 1.3 million in2007 and net asset value of at least ˆ200 million. JAT (formerly Jugoslavenski Aerotransport) carried 580,000 passengers in the first half of the year. It has a fleet of 17 Boeing 737-300, 737-400 and ATR 72 models.
JAT is the third European airline that Aeroflot has considered buying recently. It participated in two unsuccessful tenders for the Italian Alitalia (which has still not found a buyer). It bowed out of the competition for 42.75 percent of Austrian Airlines earlier this week. Observers say that declining to participate in the JAT tender was the right move for the Russian airline, noting that the Serbian airline is commercially unpromising and would stretch Aeroflot’s resources while it is itself expanding.
www.kommersant.com
All the Article in Russian as of Aug. 01, 2008
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