Aeroflot May Buy Serbian Airline
Aeroflot, which is competing for a share in the Italian national airline Alitalia, is now interested in another European airline, Jat Airways of Serbia. Analysts say that the unprofitable state airline with an aging fleet may be a backup option for the Russian carrier. Another possibility is that Aeroflot intends to make Belgrade a major transit center.
News of the potential deal was first revealed by Serbian Infrastructure Minister Velimir Ilic to Vecernji Novosti newspaper. Jat sources confirm that negotiations are underway.

Jat Airways (formerly Yugoslav Aerotransport) was founded in 1927. It carried 1.2 million passengers in 2006 (17-percent growth). Its financial results from 2006 have not been published yet. In 2005, its sales volume was $187.5 million and losses about $60 million. Its fleet consists of ten Boeing 737-300, two Boeing 737-400 and four ATR 72-200. The airline is expected to cost to less $100 million.

Aeroflot is declining to comment on its plans for Jat.

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