Friday, December 02, 2011

Baltic Aviation System Opts Out From Tender for JAT Airways

Dec. 2 (Bloomberg) -- Baltic Aviation Systems, the only potential bidder for JAT Airways, withdrew from a tender for Serbia’s state-owned flag carrier.

Baltic Aviation Systems gave no reason for its withdrawal and the Serbian government is now working on a proposal on what to do with the unprofitable company, the Infrastructure Ministry said in an e-mailed statement. This was the third attempt to sell the airline that flies to 29 destinations with 14 aircraft whose average age exceeds 15 years.

The government said earlier it would try to restructure the company to create a smaller, leaner carrier with a renewed fleet and free from liabilities worth more than 19 billion dinars ($247.8 million). JAT’s net loss widened to 2.5 billion dinars in 2010 from 1.1 billion dinars in the previous year.

The announcement came a day after Latvia bought out Baltic Aviation System’s minority stake in AirBaltic AS.

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