JAT Airways will be renamed as Air Serbia
Etihad Airways has announced that it will acquire 49% of the Serbian flag carrier JAT Airways, which will be renamed as Air Serbia, the news agency Reuters reports.
Also under the deal signed with the Serbian government, Etihad will provide a $40 million loan facility to the long-struggling airline, due to be converted into equity on 1 January 2014. That amount will be matched by a capital injection of the same size by the Serbian state.
Etihad Airways and Serbia will also give further funding of $60 million each through shareholder loans and other funding mechanisms with the aim of expanding the Air Serbia route network. Finally, Etihad will get a five-year management contract.
[pictured, left to right: Dane Kondic, CEO Air Serbia; James Hogan, president and CEO, Etihad Airways; Aleksandar Vučić, deputy prime minister of Serbia]