Parliament votes on Jat

Serbian Parliament poised to approve Jat’s loan

The Serbian Parliament will, at 11.00 CET vote on a range of laws and bills, one of which is the approval of Jat Airways’ 51.5 million Euro loan, to be used for “rejuvenation” purposes and the lease of 2 Airbus A319s. The loan is set to be approved as the governing majority sticks together when it comes to passing laws and bills. Jat requested the loan back in March 2010 from 2 banks but it took the Government 7 months until it gave its backing and guarantees for the credit.

The parliamentary approval is the final obstacle for the launch of an international tender for the lease of the two Airbus jets. The Tender Commission will then choose the best offer. Tender procedures were scheduled to begin on November 3 but were delayed because the parliament hadn’t approved the loan yet. The aircraft are expected to be in the fleet by the end of January 2011. However, Jat faces a new dilemma as rumours spread that its CEO, Srdjan Radovanović, will be deposed from his post soon, after a series of gaffes.

UPDATED

The loan has been approved