aviation industry in serbia

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www.siepa.sr.gov.yu

Aviation Industryin Serbia

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Official NameForm of State

Legal SystemPolitical Structure

AreaPopulation (in million)

Geographic Position

Official LanguageMain ReligionLargest Cities

CurrencyExchange Rate

GDP (2005)GDP per Capita (2005)

Time ZoneInternet Domain

Republic of SerbiaParliamentary Republic

Based on the Serbian Constitution of 1989President, Unicameral Assembly with 250 seats

88,361 sq km7,498South East Europe, central part of Balkan Peninsula; borders Hungary, Bulgaria, Romania, FYRMacedonia, Albania, Bosnia and Herzegovina and Croatia

SerbianChristian OrthodoxBelgrade (capital): 1.5 million; Novi Sad: 300,000; Niš: 250,000

Dinar (CSD)1 EUR = 81.1818 CSD (as of 01.02 2006)

24.105 billion USD3.183 USD

Central European time zone (GMT + 01:00).yu

To Make Your Business Grow

Southeast Europe is the region with thehighest growth in Europe. For companies thatseek to start or expand their businesses in thisregion, Serbia is the place to be – for anumber of reasons. Serbia and Montenegro isthe only country outside of theCommonwealth of Independent States (CIS)that enjoys a free trade agreement with theRussian Federation, offering customs–freeaccess to its market of 150 million people!Furthermore, Serbia is in the middle of theSouth East Europe Free Trade Area thatprovides duty–free access to a potentialmarket of 55 million people. The local Serbianmarket itself is among the largest in the region(7.5 million people). The Serbian economygrew by 7.6% in 2004, and is expected tosustain high growth rates, leading to asignificant increase in purchasing power andexpansion of the domestic market.

To Easily Serve Your EU Customers

By operating in Serbia, a company can enjoyeasy access to the EU market, while benefitingfrom lower production costs. BorderingHungary, Serbia is at the doorstep of the EU.It is also a gateway between South EastEurope, Western and Central Europe, and anintersection of the two most importanttransportation corridors connecting WesternEurope and the Middle East (Pan–Europeancorridors No. 10 and No. 7). By investing inSerbia a business could effectively serve itsEuropean and Middle–eastern customers, thusenhancing its profitability.To Benefit from Exceptional Human Capital atCompetitive CostsEvery year thousands of young graduates leaveuniversities and colleges in Serbia. Highlyeducated people who are receptive to newtechnologies, familiar with IT, and well–versedin foreign languages, represent Serbia’s truecapital.Furthermore, Serbia possesses a skilled andproductive workforce with a wealth ofexperience, both in management andmanufacturing. A tradition of cooperation withforeign companies and decades of opennesstowards Western culture and values have left amark on their skill–set.This exceptional human capital is available atvery competitive prices. Labor costs in Serbiaare among the lowest in the region, and aresignificantly lower than those in the EUmember countries.

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Why Serbia?

GrossSalary

EmployersContributions

Serbia 180 34

Romania 196 64

Czech R. 656 230

Slovakia 657 232

Croatia 785 135

Hungary 832 295

To Boost Your Cost Effectiveness

The tax regime in Serbia is the most favorablein the region. Some of its features include:

• the lowest corporate profit tax rate in Europe, set at 10%,

• tax credits for investing in fixedassets up to 80% of the investedamount,

• a 10–year tax holiday for investmentsover €7.5 million,

• subsidies for new employment,tax exemptions, and a variety ofother incentives.

Source: Statistical Office of the Republic of Serbia

GDP growth rates

2005e 4.6%

2004 7.5%

2003 3.1%

2002 4.0%

2001 5.5%

Source: IDA, Ireland

Source: Gallup International

Source: SIEPA, National IPAs

Corporate profit tax rates, 2004

Serbia 10.0%Hungary 16.0%Bulgaria 19.5%Croatia 20.0%Romania 25.0%Czech R. 28.0%

Familiarity with English language

Serbia 42%Poland 22%Czech R 22%Romania 20%Hungary 25%Bulgaria 28%

Labor costs in October 2004, in Euro

Serbia is one of 15 countries in the world witha history in aviation dating backto the beginning of the 20thcentury. Rootsof thisindustrystart in 1909,with the first glider flight inSerbia, and reached itsheights in the 1980's withthe production of modernjet aircraft, some of whichare, even today, used inflight schools all over theworld.The launch of the aviation industry in Serbiabegan with a surge in the 1920s when as manyas seven companies for the production ofaircraft, engines and related equipment wereestablished. The second wave of growth wasinitiated in the 1930's with the establishment ofnew production companies. All companies inthe industry were profit driven privateenterprises, which established a clear vision forthe development of the industry as a whole.The industry gained recognition very early andbecame a driving force in overall developmentof technology and science in the country. In the beginning, the established companiesproduced both their own aircraft as well aslicensed production of foreign designs. Some ofthe famous domestically produced aircraftwere Little Brandenburg and IK-3 which werethe true foundations for the aviation industrydevelopment in Serbia. Although in the late 1940's some of thecompanies in the industry had changed theirproduction, a great majority continued to work

in the aviation sector. Since all companies werenationalized, production was planned on awider scale and it gradually shifted towards theproduction of separate

parts andcomponents – allrequired for production

of airplanes.Research and

development in this periodwas aimed at production of

aircraft with jet propulsion. These new goalsrequired improvements in productiontechnology, materials processing and a numberof industries had to raise their own productionstandards in order to meet new goals.Many of those goals were achieved with thedevelopment and production of domestic jets.At the time of their creation, aircraft like J-1Jastreb, J20 Kraguj, J22 Orao, G-2 Galeb andG-4 Super Galeb were praised for performanceon exhibitions throughout Europe and thusensuring an internationally respected name forthe Serbian aviation industry as a whole.These goals elevated quality and technology ofthe domestically produced aircraft to thehighest standards available in the world.Industry was capable to meet those challengesand had adequate support in production,development and research. Unfortunately,since the early 90s the Serbian aviation industrydid not develop any further. Today, aviationindustry in Serbia is eager to once moreestablish itself as important player on the worldaviation map.

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Aviation Tradition in Serbia

Air Museum, Belgrade

Belgrade Air Museum vas founded in 1957with the intent to preserve material evidencessignificant to the emergence and developmentof the Serbian Aviation. Its deep roots and richtradition bounded the Museum founders tothe fulfillment of their goals. Years of work oncollecting and preserving these historicaltreasures made the Museum internationallyrenowned. By the size and value of itscollection the Museum is among ten worldleading institutions of this kind. Its collectionconsists of over 200 aircraft, 130 aircraftengines, radars, rockets, various aircraftequipment, over 20.000 books andtechnical

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Aviation Heritage

documentation and over 200.000 photographs.On the exhibition grounds around the Museumbuilding are over 50 types of original airplanes,hydroplanes, helicopters and gliders, fromvarious European and American countries, butalso domestic ones. International importanceof the exhibition is contributed by famousWorld War II airplanes: Messerschmitt Me-109, Hurricane Mk. II, Spitfire Mk. VII, YAK-3,Ilyushin IL2, Thunderbolt P-47 and the mostinteresting FIAT G 50-BIS, Italian fighter fromthe beginning of the World War II – which isthe only saved specimen in the world.

Domestic aircraft industry isrepresented by: Ivan Saricairplane from 1910, Fizir FN,

Ikarus S 49C, first jet airplanes451M and 451 MM Strsljen

II, as well as airplanesAero-2, Soko 522, UTVA66, Kraguj, Galeb andfighter-bomberprototype Orao J-22.

On the open airexhibition among othermilitary aircraft one canfind: Caravelle SE-210,

Junkers JU-52, Ilyushin IL14,Douglas DC-3, Short Silent Mk. 1

and DHC-2 Beaver.

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In Serbia, educational institutions are capable ofsupporting a whole range of different profilesfor workers in the aviation industry. There areabout 20 different institutions that providedifferent levels of education to various segmentsof the industry. Additionally, the fact that inSerbia about a third of all graduates are fromtechnical faculties – provides a continuoussupply of fresh manpower needed to keep theindustry running. The labor force in Serbia iswell educated, proficient in foreign languages,inventive and with strong management skills.Foreign companies that operate in Serbia regardthe skilled and innovative labor force as one ofthe key advantages Serbia has to offer and theskilled work force of the aviation industry is notan exception. Moreover, many engineers thatgained their education and experience in Serbiaare now world renowned experts.

• Component engineering and manufacturing –companies operating in this field have significantexperience and knowledge in the production ofvarious components for the aviation industry.As Serbia used to produce finished aircraft, itcan be rightfully concluded that the existingcapacities allow for engineering developmentand production of almost any kind of aircraftcomponent or equipment. In particular, Serbiancompanies have a long standing history inproducing the most demanding components,including engines and landing gear which arecrucial for the overall safety of aircraft, itspassengers and cargo.

• Maintenance Repair Operations (MROservices) – Serbian companies providing MROservices have strong core competences inaircraft maintenance. The long standing

tradition of cooperation with leading worldaircraft manufacturers, combined withcompetitive pricing, make Serbia the topdestination for MRO services to all that seekcost efficiency that does not compromisequality. Facilities that are at the disposal ofpotential customers are modern and arebeing constantly upgraded. Serbian companiesthat provide MRO services are closely linkedto R&D institutions and continually improvingspeed and quality of service.

• Consulting – Due to the accumulated vastexperience, engineers of different profiles areat the disposal for consulting services that canadd value to your company when reachingnew heights in performance. Consultingcompanies in this field are strongly motivated,with extensive knowledge of the industry andrelevant contacts which ultimately make thedifference.

First-Class Labor

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Faculty of Mechanical Engineering,Belgrade University

Aeronautical Institute is a science and researchsection of the Aeronautical Department ofBelgrade Faculty of Mechanical Engineering. Allscientific, research, development and designwork of the Chair for Aeronautical Engineeringestablished in 1932, and AeronauticalDepartment established in 1937 is donethrough this institute. With the beginning ofacademic year 1937/38 regular teachingcourses began at the Aeronautical Group.Since then more than 2000 students

graduated, more than 200 received theirmaster degree and more than 100 receivedtheir doctoral degree.Aeronautical Institute deals with the area ofaeronautics as well as with the other branchesthat use methods and results developed inaeronautics. In Aeronautical Institute there aremore than 30 employees involved in scientificand research studies. Most of them havedoctorial degrees and work as professors,associate professors or assistants at the Facultyof Mechanical Engineering University ofBelgrade.Aeronautical Institute is involved in thefollowing areas: aerodynamics, flightmechanics, flying vehicle design, flying vehiclesystems equipment and avionics, computerdesign and flying vehicle logistics.Aeronautical Institute possesses moderncomputer systems resources for calculation,analysis and design (SimLab). It also hassubsonic, supersonic and ballistic wind tunnels,laboratory for structure testing and test plantsfor rocket and small turbojet engines. AlsoAeronautical Institute is specialized in the areaof composite materials.

Education at its best

Prototype: CHP-1Designed by Professor Zlatko Petrovic

Faculty of Mechanical Engineering, Belgrade University

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Equipment manufacturing

Serbia offers a wide variety of opportunities forinvestments in the field of aviation industry. Manycompanies in this sector are in the process ofrestructuring and privatization. This is a majoropportunity for businesses seeking to establishtheir presence in the region and to gain access toall the competitive advantages that Serbianaviation industry offers. Capabilities of theindustry have been proven many times withsuccessful licensing of production of aircraft, itscomponents and engines. Some of the bestexamples are the licensed production of "RollsRoyce Viper" and "Turbomeca Astazou III B"engines. In addition to this, hydraulic elementsfor landing gear for Boeing aircraft were alsoproduced in Serbia for servicing purposes. Theseexamples are a clear indication that equipmentmanufacturing in Serbia is definitely at the levelcapable of satisfying the demands of modernaviation industry. Naturally, the hard times theSerbian economy had endured in the 1990's haveaffected the aviation industry as well, thusinvestments in this field would predominantly beinvestments in machinery. Whereas, the existingqualified labor could easily optimally utilize thenew equipment.Equipment manufacturing in Serbia goes beyondthe parts aforementioned. Companies producingmeasurement instruments, gyroscopes, parachutesand other aviation-related equipment are alsopresent in Serbia. The tradition Serbian companieshave in their production fortifies the goodreferences Serbian aviation industry has worldwide.An additional opportunity in the domain of MROservices is Serbia's proximity to the fastest

growing aviation markets. Apart from

competitive labor costs and component

manufacturing prices, Serbia's geographic location

allows faster and cheaper transport of produced

and/or serviced components.

Aviation and air cargo transport

It is quite obvious that Serbia's strategic

geographic location allows it to successfully

service the entire region, Europe and the Middle

East by air or even road transport. As aviation

hubs vitally rely on all the support locally available

through adequate MROs, significant investments

have been committed to development of a new

transport terminal at Belgrade "Nikola Tesla"

Airport. Located right at the doorstep of many

European capitals, Belgrade is a natural choice

for companies servicing the eastern parts of the

European Union. With the shift of production

and manufacturing from west to east, the

importance of fast and reliable deliveries will

remain one of the key aspects for these

businesses.

Apart from Belgrade Airport, city of Niš is

developing as the second transportation hub of

Serbia. This hub is aimed predominantly at

servicing the southern parts of Eastern Europe

and the Balkans. The city of Niš is located exactly

on Corridor 10, at the point where it diverges

into two routes – one to Skopje FYROM and the

other one to Sofia (Bulgaria). Given the

economic activity and the growth in the region,

the demand for air transport services in this part

of the world will be on the rise.

Investment opportunities

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Public enterprise “Nikola Tesla”

Airport, Belgrade

Because of its geographic position, high quality

of services, expertise, skill and employees

efficiency Belgrade "Nikola Tesla" Airport aims

to become regional leader in air trafficking.

For this purpose, during the year 2005,

Airport has performed the reconstruction of

Terminal 2 and takeoff-landing runway. This

rebuilding was conducted in accordance with

all international standards and intent to

improve the service quality making it equal to

other international airports. Within the

reconstruction of takeoff-landing runway a

Category 3b was placed for landing and takeoff

of airplanes at all weather conditions, including

fog. The nomination for best regional airport in

year 2006, by the well recognized English

Institute for Transport Management, best

Airports

represents the position and business quality ofBelgrade "Nikola Tesla" Airport today. This year, Belgrade "Nikola Tesla" Airport andseven successful domestic construction firmshave signed agreements of business andtechnical cooperation with the aim of strongerapproach to both domestic and foreign markets.Belgrade "Nikola Tesla" Airport and Turkishcompany "TEKNOTES Technological PlantsInc" have been awarded the internationaltender for building and management of airportterminal in Bodrum, Turkey. This is yetanother confirmation of know-how, expertiseand skill, the main criteria for entering theinternational market.The business strategy of Belgrade "NikolaTesla" Airport is the creation of unique systemof domestic airports, that would unified enterinternational market. Through this strategicplan Belgrade "Nikola Tesla" Airport wants tocreate a network of airports in Serbia locatedin cities of Belgrade, Nis, Uzice, Sjenica andsome other smaller airports around thecountry.According to the IMF report, listing theenterprise financial report, the airport receivedpositive reviews proving once again that it is aprofitable company and the only publicenterprise in Serbia to have completed thereconstruction process.

The future plans for the airport includereconstructions and creation of airportcomplex. Long-term vision for Belgrade"Nikola Tesla" Airport is the creation ofairport-city that would consist of a headbuilding, the actual airport, undergroundparking, hotel and business center.Considering that the developed infrastructureis the base for successful business, Belgrade"Nikola Tesla" Airport is working on a strategicplan of developing security systems, newenergy resources, exploiting sources of naturalgas and forming an independent supply ofelectric power.

Nis Airport

With the recent reconstruction of the Nisairport it is now equipped and operative as aninternational airport again, with all thenecessary services, GSE, facilities andinfrastructure. The Airport is currentlyexpecting the third reconstruction phase,which is going to lead to improvement ofnavigation aids (ILS CAT I).The Nis Airport is planned to become thesecond airport in Serbia for handling aircrafttypes of A, B and C category, for all types ofaircraft operative in the Europe and Euro-Mediterranean air traffic. The location of theairport is very suitable. A very large populationis living in the area of south and southeastSerbia, the area of industrial and economycenters: Kraljevo, Krusevac, Jagodina, Zajecar,Pirot, Vranje, Leskovac, Prokuplje and Nis.There are about 2.000.000 citizens living inthis area, about 20% of the total population ofSerbia.The passenger potential of the region:workmen and immigrants, estimated numberin: Europe: Germany ~ 845.000, Austria ~300.000, Switzerland ~ 190.000, France ~80.000; Overseas countries: USA ~ 650.000,Canada ~ 400.000, business trips, andtourists.

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Founded in 1916, the company was operatingas an aircraft repair facility in Novi Sad. Later itwas moved to the city of Kraljevo, where itssuccessful operation turned Kraljevo into atrue aviation centre of the time. Theinfrastructure around it was specially built tomeet the requirements of the factory and atthat time further investments established thecompany as a European leader in technology atthat time. Parallel to this facility, an additionalairplane engine repair center was built nearBelgrade named Technical Repair Institute

"Moma Stanojlovi?". The two companieshad united in 1976 to create common

production facilities calledAeronautical Plant "Moma

Stanojlovi?". The Institute is nowlocated 20 km from Belgrade

on area of 66 hectares, ofwhich 40.000m2 are

production halls.Even today, with

its services andtechnology,

this company remains unique in the wholeregion. AP "Moma Stanojlovi?" is certified forMRO of 13 different types of aircraft, 14 typesof piston engines, 11 types of air-air, air-earthand earth-air missiles, tens of special purposevehicles and accessories, as well as, a wholeline of aircraft equipment including electronic,oxygen supply systems, communicationequipment, instruments and many other parts.Apart from overhaul, company produces spareparts that can be used in MRO, providing along list of complete services for its clients.The company is proud of its services and partsproduced for helicopters Mi-8 and Gazelle, forwhich they make main and tail rotor bladesmade of composite materials, as well asproduction of radar antennas from compositematerials using its own technology. Also, itprovides services in machining, heat treatment,electro-chemical treatment, engine testing andvarious diagnostic services. Within thecompany is a certified laboratory for testingand servicing of measurement equipment andinstruments.At present, AP "Moma Stanojlovi?" employsalmost 1.000 workers out of which 20% haveuniversity degrees. Company has significantexperience in servicing both domestic andforeign clients, especially companies in South

and East Europe, Africa, Asia andSouth America.

Aeronautical PlantMoma Stanojlovic

Succ

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ries

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In the last 60 years, among many otheractivities, MTI has been responsible fordesigning and developing aircraft. Over time ithas become the most renowned and wellequipped institution in this part of Europe. Withits present research and developmentcapacities, MTI is capable of developing aircraftfor both civilian and military purposes.Among the services it provides, most interestingfor potential clients are research anddevelopment services like:

• theoretical aerodynamics, • experimental aerodynamics with air-tunnel

testing, • engineering and design of aircraft structure, • stress and strength analysis of flight vehicle

and other structures, • various experimental static and dynamic

testing of construction, • aircraft propulsion, • landing gear testing and design,• hydro, fuel systems and controls,• design and production of wind tunnel models,• avionics architecture design for combat and

training aircraft,• upgrade and modernization of defense

systems, and• development and implementation of aircraft's

armament.

MTI has had significant results and roles in theproduction of domestic aircraft in the past. Thosetypes are G-2 Galeb, J-21 Jastreb, J-20 Kraguj, J-22Orao and G-4 Super Galeb. At the time of theirdevelopment and production all aircraft wereconsidered remarkable by numerous expertsworldwide. All aircraft, which were exported to anumber of countries, are in operation with MTIstill providing expert consultations in repair andservicing of the aircraft.

Presently, MTI is working on the developmentof new primary and basic training aircraft Lastaas well as the modernization of G-4, used as amilitary training and combat aircraft. In additionto these projects the company is developingreconnaissance UAV and laser guided bomb(LGB). The guidance and control section of thisLGB can be utilized, with some modifications,to other types of bombs.MTI's testing equipment and wind tunnels areone-of-a-kind in the region. There are five windtunnels, with speed range from 0.05 to 4 Machin which a whole range of testing can beperformed. Facilities also include twoexperimental halls for dynamic and static testingwhich are monitored by modern digitalequipment. The company's computer center isequipped with fully licensed Unigraphics NX, I-Deas, Nastran and a set of software solutionsthat were designed in-house by MTI experts forresearch and development purposes.

Military Technical Institute

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This company, founded in January 2005, is theyoungest member of Serbia's aviation industry.Companies like "JV Turbine Support" are theclearest example of the business orientedapproach to aviation industry that is embeddedin highly skilled labor. The company specializesin aviation/aero engine consulting services anddue to the established affiliations with all majorSerbian companies in the field, it can offerone-stop-shop services for companies seekingaviation industry solutions. It is a majorspecialist in aero engines, their maintenanceand repairs.

Its expansive approach to business has madethe company a leader in initiatives to makeSerbian aviation industry even morecompetitive and to present it to the world. Inaddition, having signed consulting and agentagreements with major US and European aeroengine companies, it brings world businessstandards in Serbia. Recycling of super alloysand creating a paperless business environmentis the way jvts.aero will contribute keeping thenatural resources in Serbia.

JV Turbine Support

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The Flight Test Center (FTC) is a R&Dinstitution of the Air Force and Air DefenseCommand established for aircraft, airborneequipment and weapons development andverification tests purposes.The Flight Test Center was established inBelgrade in 1945. It continues tradition ofFlight Test Group, which was formed onDecember 1933 by the decree of theYugoslav King Alexander Karadjordjevic. The FTC is qualified for carrying out thefollowing tests on ground and in the air:

• Airplane and Helicopter Flight Testing,• Aircraft Performance,• Flying Qualities of Piloted Aircraft,• Weapon Systems Integration,• Aircraft Noise Measuring,• Avionics Airborne Testing,• Parachute Testing,• Ground Testing, and• Test Pilot School.

The following types of aircraft and equipmentare tested at FTC:• 203 types of aircraft: 94 prototypes of

aircraft of indigenous design and production,• 102 types of parachutes (personnel, cargo

and braking parachutes),• 91 types of weapons both guided and

unguided of various origin,as well as a largenumber of fire

control systems, and• 19 types of targets (guided, programmed

and towed).

Current areas of research focus and some pastresearch projects are listed below.

• Galeb G-4M, Aircraft – Modifications,• Aircraft noise measuring – ICAO Annex 16,• Parachutes airborne testing,• Helicopter Mi – 8, modifications –

replacement of main rotor, and • Weapons Systems Integration.

Technical support of tests includes:

• PCM/FM Telemetry System consisting ofairborne data collection system and groundtelemetry station,

• The Theodolite Systems, • The Computer centre,• Metrology laboratory with a number of

different types of sensors , • Electrical laboratory for assembling testing

and preparation measuring equipment, and• Video and film processing laboratory.

Flight Test Centre

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With MRO experience dating back to 1927,company has tradition that only a few others inthe world have. JAT Tehnika was among firstcompanies to receive FAA for Boeing fleet in1969 and at the time only 4 other companies inEurope had this certificate. JAT Tehnika wasalongside Lufthansa, Air France, Swissair andSabena to receive this certification. Thiscooperation with Boeing went on, to make JATTehnika first trained and certified MRO formaintenance of B737-300 and CFM56-3 enginesin Europe. As a result, in the mentioned field,JAT Tehnika engineers have 20.000 years ofcumulative hands-on experience. However, Boeing was not the only partner ofJAT Tehnika. In 2002 company celebrated 65years of working together with Pratt &Whitney and over 3.000.000 jet engine flighthours accumulated on JT3D-3B and JT8D-9/9Aengines. Similar achievement were reachedwith CFM International, with 275.000 engineflight hours of successful cooperation.Apart from servicing engines, JAT Tehnika isalso performing A/C Overhaul for DC-9, B727and B737 Classics aircraft. This in particularrepresents an opportunity for companiesseeking quality and reliable overhaul servicethat is located in Europe and due to itsgeographic location, Serbia has a naturaladvantage for servicing not only Europe butalso Middle East and North Africa.JAT Tehnika's thrive for excellence has led theway in the past seven decades and itscommitment to quality is still truly unique.Company is constantly upgrading itsequipment and the latest addition to themachine park was a state-of-the-art balancing

machine from American Hoffman. In additionto qualified and highly experienced labor,adequate equipment, JAT Tehnika is the mostappropriate partner for companies seeking toreduce costs. JAT Tehnika, the oldest and probably the mostreputable MRO in Eastern Europe, as ofOctober 2005 has become official EASA RepairCentre. With German LBA certifying that JATTehnika fully complies with all EASA 145, thecompany is on its way to once again become aleading MRO in the region and wider.

JAT Tehnika

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“PPT-Namenska” is a joint stock company, apart of the holding company ”Hydraulic andPneumatic Industry – Prva Petoletka (PPT)”from the town Trstenik.The company was founded in 1949 for theproduction of landing gears and otherhydraulic and pneumatic devices and systemsfor aircraft. Core activities of the company are: research,development, design, production, testing, sale,and maintenance of the hydraulic andpneumatic devices and systems for the militaryand civil market needs.Main products of the aircraft programme are:

• landing gears, hydraulic and electro-hydraulicservo-actuators for primary and secondaryflight controls, hydraulic and fuel pumps,hydraulic motors, cylinders, electro-hydraulicservo-distributors, distributors of all types,valves, hydraulic accumulators, pressure andflow regulators, filters and other devices forhydraulic and pneumatic installations;

• ground equipment for maintenance andoverhaul of aircraft (power packs,lifters…);

PPT-Namenska has over 400 productionmachines, including:

• machine tools (lathes, milling machines,grinders, hones, electro-erosionmachines…);

• machines for almost all kind of heattreatment (annealing, tempering,quenching, case hardening, nitriding,boronising...);

• lots of types of surface treatment(chromium plating, nickel plating, zincplating, phosphating,

anodising treatments for aluminium alloys)PPT-Namenska has testing and controlequipment for produced devices and systemsin their development as well as massproduction phase, all in accordance with MILstandards:

• test benches for functional testing ofhydraulic, pneumatic and fuel devices andsystems;

• landing gears test benches (balance, impact,fatigue, durability);

• laboratory for brakes, tyres and wheelstesting;

• test benches for impact, vibration andacceleration testing;

• meteorology laboratory for pressure andlength control of measuring equipment.

Thanks to the outstanding level of quality ofproducts, PPT-Namenska has had cooperationwith several world leading companies from

aviation industry.The best example is that PPT-Namenskareceived the certificate from BOEINGcompany for the production of tier 1parts and devices for civil airplanes, inaccordance with BOEING demands andstandards.Significant cooperation was alsodeveloped with the following companies:

• Boeing, Moog – USA;• Aviostar, Motostroitelj, IL – Russia;• Miessier – Spain;• Lucas – France.

Skilled labour and exelent technologicalequipment makes PPT-Namenska areliable partner for production of aircraft

equipment.

PPT-Namenska

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Since its founding in 1948 till today, 21.maj,

known as DMB, has always covered aircraft

program as it main occupation.

Turbo Engine and Transmission Factory

(FTMT), as a part of DMB company, is the

oldest factory that maintained a good

cooperation with all known companies in

aeronautical field, especially within Europe.

During the last 50 years FTMT has achieved a

very high technological level throughout

license production of components for S-55

Westland Sikorsky helicopter, Czechoslovakian

Walter piston engine, overhaul and testing GE

J-33, 7-35 and J-47 turbojet engines,

transmission components for Gazzele SA-342

helicopter, production of cold parts of Astazou

XIM engine, license production of cold partsof Rolls-Royce Viper 632 engine, cooperation with Boeing,Snecma, and Russian companies.Other, very important part of productionwithin DMB-FTMT is production oftransmission generally intended for agriculturalmachinery, tractors, civil engineering machine,car and electro industry, cross-countryvehicles, cranes and tool machines.The production capacities, good technologyand expert staff enabled manufacturing of themost complex parts of aircraft engines. DMB-FTMT has all standard machinery needed forproduction including CNC lathes, CNC millingmachines, CNC grinding machines, machinesfor teeth cutting, and others.Also, DMB-FTMT has research anddevelopment labs, good quality controlincluding Quality Management6 System whichfulfils requirements of the internationalstandards ISO 9002. Today, DMB-FTMT has over 200 employees.Nearly 10% of the workforce is composed ofengineers and management staff, and the greatmajority of production workers are highlyskilled technicians.

DMB-FTMT

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Precise Casting Plant – LPO Ada was founded in1978. The facility is in the industrial zone of Adacity, and has a building area of over 6.000 squaremeters. From the year 2003, LPO is 91% subsidiary ofBet Shemesh Engines Ltd. from Israel. LPO is an expert in equiax castings of blades andvanes for the aerospace – jet engines. It has avery wide experience in production of thecastings for commercial and military engines. As part of the production its casting plant has thefollowing operations:

Waxing

• Cluster assembly and• Wax pattern injection

Dipping

• The coating of wax clusters using ceramicslurry is a critical operation within theproduction process and is a vital factor in thequality of castings, particularly the surfacestructure of castings. Therefore a stringentprocess control is maintained on all significantparameters such as temperature and humidityof the air in the environment, viscosity andcomposition of the slurry, and grades ofstucco.

Casting

• Air melting, 20 kilos and• Vacuum melting, 25 kilos.

Quality Inspection

• FPI Inspection, and• X-Ray Inspection.

Dimensional inspection, visual inspection,calibration

• Dimensional Inspection• Calibration room

Laboratories

• Alloy verification – XRF• Metallurgical laboratory – Microscope• Creep testing machine

LPO maintains high quality level of turbine airfoilfor the aerospace industry. The assurance ofquality is proven by the following certificates:

• ISO 9001 : 2000 and• AS 9100 REVISION B

LPO – ADA Precise Casting Plant

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UTVA Aircraft Industry, one of the firstYugoslav gliders and aircraft manufacturers,was established in 1937 in Belgrade. In 1940the company was moved to Pancevo, about 20kilometers from Belgrade. In 1987 UTVA hasbeen finally moved to newly built facilities onPancevo airport, at the rim of the town. Majorshareholder of the company is The SerbianGovernment.Today, UTVA is the only aircraft manufacturerin Serbia.From 1937 until 1958, UTVA Aircraft Industrywas producing 9 types of gliders that were alsolicensed. Then, from 1948 until 1993, 13 typesof basic training/utility/agricultural pistonaircrafts, again, based on their original designswere manufactured and licensed. Finally, major

assemblies for attack/reconnaissance jetORAO J/IJ-22 and advanced jet trainer G4,again based on their original design weremanufactured from 1972 until 1991.UTVA performed G-4M aircraft upgrade, from1997 to 1999, with the most complex aircraftweaponry system designed, built andintegrated in Yugoslavia, and majormodifications in all aircraft systems.In the field of MRO, UTVA was performingoverhaul on G-4 from 1993 to 2000 and stillperforms major structural repairs on damagedaircrafts and carries-out modifications onORAO, G-4, and UTVA 75 aircrafts.Also, UTVA produces special maintenancetools, like CFM 56-3 shop maintenancebenches and inspection tools.Very important segment of UTVA experienceis international cooperation inaircraft/aerospace programs since 1988, whichmainly consists of manufacturing of metallicstructural parts, subassemblies and assemblies,as well as array of manufacturing tools. List ofUTVA customers includes Boeing, IAI Bedek,IAI Civil Aviation Group, SABCA, SONACA,Tupolev, Ilushin, Norman, and Lovaux.Today UTVA provides following manufacturingcapability from blueprint: aerospace machinedand sheet metal parts, all kind of aircraft toolsand jigs, aircraft cabin transparencies, aircraftsubassemblies and assemblies, together withassembling and factory testing of whole smallaircraft.Also, UTVA provides following engineeringservices: design of manufacturing tools and jigs,design of assembling technologies, CADdesign, and CNC programming.

UTVA Aircraft Industry

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The company was founded in 1947, and itfollows the tradition of Knebl-Ditrih factorywhich produced its first parachute in 1934.Over time Kluz Parachutes had cooperationwith world famous parachutes producers suchas: Irvin, Brueggemann, Pionir and Parachutes-De-France. Its material suppliers were: Para-Gira, Autofluga, Harisa and Fordjekrafta. Products of Kluz Parachutes were sold innumerous countries including: Germany, Italy,Indonesia, India, Egypt, Brazil, Argentina and allthe countries of the former Eastern Block. Companies production program:

• Parachutes: air-strike, training, sport, rescue,drogue (for USSR and Yugoslavian aircraft),cargo, special, pyrotechnical, paragliding,parasailing and others;

• Parachutes and army equipment: flight suits,uniforms, backpacks, connecting systems,mountaineering equipment, cargo platforms,

suspension elements, various types of cargolocks, hunting and camping equipment;

• Baloons: without baskets and burners;• Protection equipment: body armor, vehicles

and helicopter protectors.

Apart form producing its original designparachutes, Kluz Parachutes producesparachutes according to client's design such asBrueggemann – for NATO troops, amountingto 35 years of cooperation, and tailor madeparachutes based on the client's sample. The factory has technological potential toproduce from 100 to 200 parachutes monthlydepending on the size and purpose. Bodyarmor production capacities are from 2.500 to3.000 peaces.The company was privatized in the beginningof 2006 as the only company out of the wholeKluz holding. Company has 110 employees and2.600 m2 of working facilities.

Kluz Parachutes

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Airport Catering is a company primarilyinvolved in providing catering services todomestic and foreign companies. The cateringservices include catering of food, drinks and allother related services that are provided in theaircraft. Apart from the aircraft, cateringservices can be provided on the airport andother venues.Employees of the company are all highlytrained for catering business, making it possibleto deliver 5.000 different meals a day.Company has facilities to produce both cold

and warm meals, confectionery products aswell as special menus such as vegetarian, dietmeals, Hindu, and child menu.In process of food preparation, company isapplying highest safety standards and currentlyis introducing HACCP standards. Company isalso a member of International Travel CateringAssociation (ITCA). As a member of thisassociation, the company is closely monitoringnew achievements in flight catering, applicationof standards and innovations.

Airport Catering

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Institution contacts

Faculty of Mechanical EngineeringBelgrade UniversityKraljice Marije 1611000 BelgradeSerbiaTel: +381 11 3370245Fax: +381 11 [email protected]

Air MuseumBelgrade "Nikola Tesla" Airport11080 Belgrade SerbiaTel: +381 11 2670 992 Fax: +381 11 2670 992 [email protected]

Airport contacts

Belgrade “Nikola Tesla” Airport11180 BelgradeSerbiaTel: +381 11 209 4000Fax: +381 11 209 7061E-mail:[email protected]

Nis AirportVazduhoplovaca 2418000 NisTel: +381 18 580 023Fax: +381 18 583 [email protected]

Industry contacts

AP Moma StanojlovicPuk. Milenka Pavlovica 16011273 BatajnicaSerbia Tel: + 381 11 316 52 73Fax: + 381 11 84 86 [email protected]

UTVA A.I. Jabu?ki put b.b. 26000 Pan?evoSerbia Tel: +381 13 315-383Fax: +381 13 [email protected]

Military Technical Institute11000 BelgradeSerbiaTel: +381 11 2508 674Fax: +381 11 2508 [email protected]

JAT-TehnikaBelgrade "Nikola Tesla" Airport11080 Belgrade Serbia Tel: +381 11 260 14 75Fax: +381 11 267 56 64E-mail: [email protected] www.jat-tech.co.yu

JV Turbine Support11000 BelgradeSerbiaTel: +381 11 311 29 29Fax: +381 11 311 61 [email protected]

LPO ADA29. Novembar b.b.24430 AdaSerbia Tel: +381 24 851 807Fax: +381 24 851 [email protected]

PPT – Namenska Cara Dušana 10137240 TrstenikSerbia Tel:+381 37 711 596Fax:+381 37 713 [email protected] www.ppt.co.yu

Flight Test Centre Puk. Milenka Pavlovica bb11274 BatajnicaSerbia Tel: +381 11 614 756Fax: +381 11 108 [email protected] www.voc.vj

DMB – FTMT Oslobo?enja br.1 11090 Belgrade Serbia Tel: +381 11 356-4447 Fax: +381 11 356-4447 [email protected] www.dmb.co.yu

Kluz PadobraniMite Ruzica 811000 BelgradeSerbiaTel: +381 11 2410 [email protected]

Aerodrom Ketering d.o.o.Belgrade "Nikola Tesla" Airport11180 BelgradeSerbia Tel: +381 11 2286 159Fax: +381 11 2097 530

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Serbia Investment and Export Promotion Agency (SIEPA) is a government agency established in2001 to facilitate and support foreign direct investments and promote Serbian exports.

The list of services that SIEPA provides to foreign investors:

• analyzing Serbia’s business environment and providing critical informationregarding the process of setting–up a company in Serbia,

• preparing sector analyses and studies that give a thorough overview of thestate of particular sectors of the Serbian economy,

• providing help in identification and acquisition of attractive Greenfield andBrownfield sites,

• assistance in obtaining necessary permits and licenses, thus speeding up thecompletion of investment projects,

• helping in finding partners and suppliers among Serbian companies.

Only by effectively networking with public and private sector bodies, SIEPA can best respond tothe needs of foreign investors. In particular, SIEPA works in close cooperation with the followinginstitutions:

• all government ministries and other governmental bodies,• municipal authorities and local self–government,• Building Directorate of Serbia and Agency for Building Land and Construction

of Belgrade,• tax and customs authorities,• statistical bureaus,• chambers of commerce,• National Bank of Serbia,

and all other institutions related to the process of establishment and successful pursuit ofbusiness ventures in Serbia.

cmyk

Vlajkovićeva 3

11000 Belgrade

tel.: +381 11 3398 550

+381 11 3398 653

+381 11 3398 772

fax: +381 11 3398 814 [email protected]

www.siepa.sr.gov.yu

Aviation Industryin Serbia

aviation industry in serbia

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