Reorganization of Serbian flag carrier continues

GENERAL AVIATION, JAT AIRWAYS ORGANIZATIONAL UNIT, SINGLED OUT

Jat Airways organizational unit General Aviation has been singled out, thus becoming a state-owned enterprise. This represents a continuation of decisive reorganization measures envisaged by Jat Airways Further Operation Plan presented to the Serbian Government. In the future, General Aviation will be under the supervision of the Ministry of Environment and Spatial Planning. The Contract on Transfer of Foundation Rights was signed in Serbian Government between the minister of infrastructure Milutin Mrkonjić and Srdjan Radovanović, Jat Airways Director General.

"As part of the consolidation measures and the overall reorganization of Serbian flag carrier, which are essential in the process of finding strategic partner, it is necessary for Jat Airways to single out some organizational units which do not belong to the Company's core business and which for some time do not create profit and in some cases even make losses" said Srdjan Radovanović, Jat Airways Director General, adding that the Further Operation Plan also envisages singling out some other organizational units which are not in the service of Company's core business, like Aviation Medicine and Flight Academy in Vršac. These units will be included in the health and educational system of the Republic of Serbia. "Constant support of Serbian Government is important for Jat Airways. We are convinced that this support will allow Serbian flag carrier to carry out all planned measures and start positive operation", said Radovanović.

Jat Airways Draft of Measures for further operation, presented to the Serbian Government in September this year, was created based on the most important parameters regarding operation during the previous period and the analysis of the situation at global and local market. It defines basic business guidelines, sets precise measures in order to increase revenues and decrease losses, and deals with the issue of rejuvenation of the fleet, finds the way of attracting new passengers, improving the structure of the employees and other measures oriented to the improvement of business operation. Singling out some organizational units which do not belong to the Company's core business, reorganization, establishing own maintenance operations, more rigorous financial discipline which will be enabled by the introduction of the state-of-the-art ERT software are some of the possible measures suggested in the Draft which would allow decrease of losses.