Airbus and Jat – round 2

Soon in Jat's fleet?

The European aircraft manufacturer Airbus has accepted another round of talks with the Serbian government after last week’s negotiations in Belgrade. The government wants to settle the agreement the national carrier Jat Airways, the Serbian Government and Airbus signed in 1998. The damaging order for 8 Airbus A319s will now be discussed under “new principles”, according to Airbus. The Serbian government has vowed that it will fund Jat’s new fleet. The funding will be provided through Serbian exports, according to the government. The government will reset talks with Airbus regarding the A319 order although the order is still in force. The Serbian government will head the negotiations with the line of argument that the order from 1998 is “damaging to Serbia and that it must be adjusted to the new economic and international circumstances”. Due to the fact that Jat has Airbus aircraft on order it will hold talks with the European manufacturer first however says it will talk to other manufacturers as well regarding its 2010 fleet renewal. Airbus last week accepted the terms of the Serbian government. It will not allow Jat to cancel the multi million Euro 1998 order however it will allow for it to be adapted. The government has said if an agreement with Airbus is not found it will turn to its traditional partner Boeing.

Jat has sent a delegation to the Paris Air Show where it is hunting down regional jets. All manufacturers are in play especially Bombardier, Embarer and the Russian Sukhoi which secured an order from Malev yesterday. You can read about last week’s meeting between the Serbian government and Airbus here. There, you can also find more about the 1998 order. Jat should receive up to 4 aircraft in 2010 as part of its fleet renewal. The airline currently operates 10 Boeing B737-300 aircraft (although one is leased to Air Ivorie), 5 ATR72s, 1 Boeing B737-400 and 1 Boeing B737-200, a gift from Aviogenex for the decades of debt owed to Jat. Jat has struggled this year with a fleet shortage. The airline’s dominance at Belgrade Airport has, as a result, declined dramatically. From a 75% share in 2003 to 42% today. The airline’s services to Montenegro have strugled the most due to the reduced capacity. Jat has handed over most of its passengers to competitor Montenegro Airlines on lines to Tivat and Podgorica. Jat is operating 3 daily flights to Montenegro from Belgrade this summer compared to 7 daily flights by Montenegro Airlines.