Jat Airways hands in strategy

Jat hoping for larger passenger queues

Jat Airways’ CEO Srđan Radovanović yesterday, a day before the deadline expires, handed in the airline’s short, medium and long term business strategy. Radovanović has said that he can not comment on all of the contents of the report until it is read by the government, after which it will be made public. He did however uncover some of the plans the airline has for future development. In order for the carrier to operate with a profit it must carry some 1.5 million passengers annually. “Our current fleet can accommodate this capacity but only if all 16 of our aircraft are operational”, Radovanović said. Currently 3 of Jat’s Boeing B737-300s are being used for spare parts and are, as a result, grounded. “Together with the Serbian government we hope to have all 16 of our aircraft in the sky next year”, Radovanović added. He also said that last year the airline carried 1.3 million passengers while this year the number is expected to fall to 1.1 million. The airline is expected to report losses of 20 to 25 million Euros by the end of the year.

The strategy outlines that a reorganisation inside the airline must occur and that greater financial discipline must be practised. The strategy outlines that one of the major sectors which must be modified is scheduling, that is the time at which aircraft depart. The report states that the time of departures must be modified according to the needs of the majority of the passengers. The strategy also outlines that the service on board and the flight experience must be improved. Another big plan for the airline is greater involvement in the region with more flights to cities in the former Yugoslavia. Jat is also planning to join an alliance and is considering either Lufthansa’s Star Alliance or Air France-KLM’s Skyteam.

Radovanović states that his goal is to create a modern airline based on modern management principles. “We exist for our passengers, country and the people and as a result we have a responsibility towards the government and the citizens of Serbia, our passengers and business partners”, Radovanović said.