Bid for Serbia's airline fails

BELGRADE — Serbia has failed to sell its controlling share in troubled carrier JAT Airways to international bidders, the state's privatization agency said Friday, forcing the government to bail out the debt-laden company.

No bid was made for the airline — one of the world's oldest and now burdened with about 250 million euros ($320 million) in debt.

The bids were open until last week.

The agency said a separate tender to sell a 70 percent stake in aviation maintenance JAT Tehnika, a different firm from JAT Airways, has also failed.

In July, the government offered a 51 percent stake in JAT Airways for the starting price of 51 million euros ($65 million). Aeroflot, Icelandair and Air Berlin were among the airlines that were said to have expressed an interest in buying the controlling share.

But since it became clear that no foreign company would make the offer, Serbia's government has said it will try to bail out its ailing flag carrier.

It promised to cover a part of JAT's debt toward fuel suppliers, Serbia's air traffic control and JAT's home base at the Belgrade Nikola Tesla international airport.

The government also ordered JAT management to curb costs and list all real estate property that is not in direct connection with the company's flight program.

The airline, founded in 1927, has nine Boeing 737-300s and three French-built ATR-72-200 turboprops in its inventory.

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