Air India Has No Plans To Buy JAT

[BORG]

Air India has no plans to buy Serbia's state-owned carrier JAT and is yet to decide on a proposal from JAT for a strategic alliance, Civil Aviation Minister Praful Patel told parliament on Tuesday.

The Serbian government plans to privatize JAT, whose assets including its 20-year-old fleet mainly of Boeing 737 planes and real estate are estimated to be worth USD$150 million.

In June, an Air India spokesman said the carrier was considering a strategic alliance with JAT, and could later bid for an equity stake if there was an agreement on the valuation and sharing of profits.

Patel, in a separate written reply to a question in parliament, said Air India's budget carrier, Air India Express, planned to start domestic operations from October in addition to its existing international operations.

"The fares charged by Air India Express would be competitive and comparable to the other low-cost carriers operating on the same routes," he said.

The government recently merged state-run carriers Air India and Indian into a new company, National Aviation Company. The merger is expected to take two years to complete.

(Reuters)

[POPO]

I thought there were plans for Aeroflot to buy JAT Airways. Can someone correct me on this?

[YYZSKP]

I thought there were plans for Aeroflot to buy JAT Airways. Can someone correct me on this?

There are sevral companies interested in buying JAT...Aeroflot has thus far made the most concrete and serious offer, followed by Indian airliner. I think Aeroflot's offer is by far most suitable and promising.