Pari Daily/Business Media Group
June 4, 2007

Aeroflot to set up Balkan air carrier

by Iliana Toncheva
Russia's Aeroflot and Serbia's JAT have signed a memorandum of agreement, it emerged after the closing of the International Transport Forum in Sochi. The memorandum clearly indicates Aeroflot's intentions to privatise JAT and transform it at a later stage into a trans-national Balkan airline. Aeroflot plans to acquire 75% in JAT, according to unofficial information.
American companies have also expressed interest in acquiring JAT. Russia's Sheremetyevo airport plans to take part part in the procedure for the privatisation of the Belgrade airport, Mikhail Vasilenko, general director of the Russian airport, announced recently.
Bulgarian air carriers will take a heavy blow, if Aeroflot succeeds in establishing a Balkan airline. Bulgaria's Hemus Air currently operates flights to nearly all Balkan capitals and plans to expand its presence to other cities in the region as well. Hemus Air's shareholders also privatised Bulgaria's flag carrier Bulgaria Air in 2006.