Jat gets needed funds

Jat gets 10 million Euros

At their weekly meeting, the Serbian government has finally agreed to provide Jat Airways with 10 million Euros, which would open the door for 800 workers to leave the company voluntarily and would allow Jat to lease 4 newer aircraft. The news comes as the Serbian government agreed to significantly invest in infrastructure and transportation in an attempt to fight against the global financial crisis. The government will now provide workers that wish to leave the company with 300 Euros for every year they spent working in the company. This will mostly attract those that are approaching retirement. This way the company would get rid of unneeded workers however if a total of 800 workers do not leave no one will lose their job in 2009. The Serbian minister for the economy and regional development, Mlađan Dinkić, said that by the end of 2009 the airline would receive government funds in order to lease 4 new aircraft. Meanwhile the government will provide 4.5 million Euros for the current fleet to be repaired (including aircraft that have been grounded). There is also a possibility that a new aircraft could be leased during the summer season. The Serbian Prime Minister said that these measures should allow the airline to operate with a profit in 2009.

Jat Airways found itself in major financial trouble after the privatisation of the airline failed last year. For the past decade various governments in Serbia have been less than interested in Jat and its future. However the current government and the Minister for infrastructure said that the new government, which was elected last year, will take care of Jat and that the carrier should become a regional leader by 2011.