Has Aeroflot pipped Air India for control of Serbian airline?

Belgrade: Serbian Government officials have said that Russian flag carrier Aeroflot has come up with the best price and consolidated offer for the national airline, JAT Airways. The Serbian government has announced that the airline would be privatized by the end of the year.

According to Government officials, Aeroflot has promised to expand Jat Airways, modernise its fleet and retain the jobs of its 2,000 staff. Jat Airways has confirmed that it held extensive meetings with Aeroflot last week.

Meanwhile, it appears that Air India also made a serious offer for the airline, but it's intention to make Belgrade Nikola Tesla (which is Serbia's and JAT Airways main hub) it's European home proved to be a diversion, as Aeroflot promised to focus more on expanding and growing JAT Airways.

JAT Airways, which turns 80 years old in June, may well be enjoying its last year as a State-run company. It managed to post its best results in the last 16 years in 2006, carrying the second largest number of passengers amongst all the ex-Yugoslav airlines, and also being the only such carrier to post a profit in 2006.

Officials say that 2007 is looking to be even more promising in terms of passengers and profits. The airline's main problem is to deal with an ageing fleet of 10 Boeing 737-300's and 4 ATR72 aircraft.