Sarkozy to seal Airbus deal

Nicolas Sarkozy to sign off on Jat Airbus order

After Jat Airways and Airbus signed a memorandum of understanding in London last week in order resolve Jat’s controversial order for eight Airbus A319 aircraft from May 26, 1998, it is expected that the issue between the two companies will be settled by the end of the year. A firm deal between Jat and Airbus is set to be agreed upon in the following months before the President of France, Nicolas Sarkozy, visits Serbia at the end of the year, the “Večernji novosti” newspaper reports. The agreement between Airbus and Jat will be finalised so the presidents of France and Serbia can sign the purchasing agreement in Belgrade, the newspaper writes.

It is believed that the new aircraft will be immediately transferred to Jat’s successor, which the Government of Serbia will set up. Earlier this month, the Government said it had delayed the process because of insufficient finances. However, media reports say that the Government has extracted 350 million Dinars from the Belgrade Bypass project budget and this money will be diverted to pay a company which will serve as a privatisation/restructuring advisor for Jat. Therefore, the process of setting up Jat’s successor might speed up yet again.