JAT Airways in troubles, ground partly its fleet

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Atlantis
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Joined: 12 Apr 2005, 00:00

JAT Airways in troubles, ground partly its fleet

Post by Atlantis » 18 Sep 2008, 21:12

The next European airline in big problems is JAT Airways. With the next coming winter season they are forced to ground 1/3 of its fleet. According to insiders, there is no money or less money to pay fuel for their daily flights, bankrupty is near.

In meantime, Air Baltic is taking over some flights of JAT after they pulled out of some routes. Maybe an opportunity for SN to do the same.

loginas
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Joined: 09 Jan 2006, 00:00
Location: Kaunas, Lithuania

Re: JAT Airways in troubles, ground partly its fleet

Post by loginas » 19 Sep 2008, 07:36

Atlantis wrote: In meantime, Air Baltic is taking over some flights of JAT after they pulled out of some routes.
Can you elaborate? What services and when will Airbaltic start. There are no news about this over here. But they are somewhat reducing they services from VIlnius this winter, so they would have spare capacity for expansion.

FLYAIR10
Posts: 476
Joined: 08 Sep 2008, 22:05

Re: JAT Airways in troubles, ground partly its fleet

Post by FLYAIR10 » 19 Sep 2008, 23:46

The Jat website offers the following statement on 19Sept:
With reference to articles published in a daily newspaper stating that Jat Airways (JAT) is on the verge of bankruptcy, JAT has the honor to advise its esteemed passengers and business partners alike that the situation in the national airline is stable and that there are no signs of bankruptcy. The texts indicate that there were some cost cutting measures being implemented in the same manner as in the airline industry worldwide, as a consequence of a dramatic increase of fuel prices.

In the next two months, Jat Airways will implement significant and comprehensive cost cutting measures in order to be competitive in the years to come in the environment with high fuel prices. Jat Airways is significantly reducing a number of representative offices abroad, as well as the number of expat employees. The Management has decided to reduce its salaries by 5-15%. Jat Airways is also reducing the current car pool in use. As regards to the service being provided to its passengers, Jat will slightly reduce the catering being offered on board the aircraft. The Management has also decided to reduce the number of aircraft to be operated for its scheduled services during the Winter 2008/2009 IATA Scheduling Period. The aircraft not operated by JAT will be leased out in Africa and this business arrangement will secure a continuous and significant cash flow.

The airline's Commercial Department is intensively negotiating with 10 airlines in the region as well as in Europe in order to secure joint ventures on a number of scheduled services. By doing this, Jat Airways will reduce its costs and will improve its competitive position.

Despite difficulties which are currently prevailing in the airline industry worldwide and in view of the Jat Airways cost reduction measures, our airline is finalizing its Summer 2009 schedules where a 15% increase in charter traffic is being envisaged, over and above the 20% record increase in charter traffic in 2008.

Jat Airways takes this opportunity to remind its esteemed passengers and business partners that in the year 2008 best results since 1990 were recorded, with an increase of 9,5 % in the number of passengers carried and a significantly improved seat load factor compared to last year.

The airline's Management has decided not to increase the fares in the next three months as a token of appreciation to its passengers. It is estimated that the company shall have carried 1,500,000 passengers till the end of 2008.
It seems everything is "under control" with JAT... Greetz.

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