Turkish Airlines may take major stake in Serbian carrier

Turkish Airlines may take a majority stake in Serbia's indebted JAT Airways, reported Reuters.


"We, as Serbia, gave a free hand to Turkish Airlines to buy as much of a stake as it wants," Serbian Minister Sulejman Ugljanin told reporters on the sidelines of a meeting of the Turkish-Serbian Business Council in Istanbul, adding it could be a majority.


Ugljanin said an inventory was currently being conducted at JAT on what could be sold to Turkish Airlines.


A delegation headed by Turkish airlines chairman Hamdi Topcu will visit Serbia and a decision will be reached on this issue, he added.


"We need a strategic partner to take what's good in the (JAT) company and start making profits," a Serbian government official, who asked not to be named, told Reuters in Belgrade.
"This is good news," he said.


In January, Ugljanin told Reuters that the deal with the Turkish Airlines may be reached in March.


In 2008, Turkish Airlines took a 49 percent stake in BH Airlines in Serbia's neighbour Bosnia.


The potential partnership between JAT and the Turkish flag carrier was discussed last July between Turkish Prime Minister Tayyip Erdogan and Serbian counterpart Mirko Cvetkovic.


Last year, JAT Airways announced a US$21.97 million loss for 2009 and borrowed $71.69 million from the government to renew its ageing fleet and prepare for a potential partnership with Turkish Airlines.


To cut losses, JAT in 2010 sold its headquarters building in Belgrade to state landline operator Telekom Srbije for $14.32 million. JAT operates a fleet of 15 aircraft: Boeing 737-300s, Boeing 737-400s and ATR 72-200s.
(Source:http://www.cargonewsasia.com)