Jat being sold bit by bitJat Airways’ catering division, divided into a separate company from the Serbian national carrier in 2005, will go on sale on September 9. The Serbian Government, the company’s owner, is offering 70% of the catering company, which will be auctioned off in Belgrade. In order to participate in the September auction, those interested must pay 783.000 Euros. The asking price for Jat Catering amounts to 6.6 million Euros while the new owner will be obliged to invest at least 274.000 Euros into the company.
Jat Catering, based at Belgrade’s Nikola Tesla Airport, was separated from Jat Airways under the direct orders of the government several years ago. Many criticised the move as it decreased the value of the national airline itself, although the government stressed it would be easier to sell Jat without its additional businesses such as Catering, Tehnika (technical division) and hotels.
Despite being separated from Jat, the two companies have strong ties and Jat Catring depends entirely on the national carrier. The CEO of Jat Catering is named by Jat Airways and its only customer is Jat. The catering division employs 147 people, owns a catering production facility stretching over 7.519 square metres and had a loss of 890.000 Euros in 2010.