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JAT ReviewLet viseMiles & More

Half year after the introduction of plan for recovery of Jat Airways

IMPLEMENTATION OF REFORM MEASURES IS GIVING RESULTS

Implementation of reform measures envisaged by the Plan for Further Operation of Jat Airways, which was presented to the Serbian Government half year ago, is giving actual results. Apart from rigorous savings measures, introduction of financial discipline and reorganization of the Company, overhaul of four air plane engines abroad and other five in Jat Tehnika will allow airworthiness of more planes. Also, passengers can expect free health insurance for European Union Countries, while a procedure for introducing free taxi ride continues and the tender for catering service onboard has been opened.

"The achieved result despite all obstacles show that we have moved forward and that we are decisive in our wish to upgrade the operation of the Company and meet the demands, needs and expectations of our passengers in best possible way" said Srdjan Radovanović, Jat Airways Director General, adding that with the help of Serbian Government, there is ongoing implementation of other measures such as sale of Head Office building, reduction in number of representative offices abroad, as well as singling out Pilot Academy in Vršac and its inclusion in the Republic of Serbia education system. The Serbian Government has provided necessary guaranties for the credit that will be used for the development of the company.

Draft of Measures for Further Operation of Jat Airways, based on increasing the number of passengers, decreasing the losses and reconstruction of the company, was presented to the Serbian Government in September last year and, afterwards, to the public. Compared to the same period last year, in first two months of this year, number of passengers rose 3.2 percent, regardless of the fact that only half of the fleet was in operation. Social program for voluntary leaving of employees, together with other measures, brought a decrease in number of employees from more than 1800 to about 1200 in just one year. By singling out General Aviation, Serbian flag carrier has made an important move toward solving the question of Jat Airways properties which for years have not been creating profit. This move is consistent with one of the Plan's measures – singling out secondary organizational units which do not belong to the Company’s core business (transport of passengers and freight).

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