Etihad to buy 49% of Serbian flag carrier

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]


Check Also

Eurozone, EU, Brexit, UK, tourism, travel industry, GBTA, Etihad, Ryanair, finance, analyst

What Brexit means for travel and tourism

Skift highlights comments from industry players

Meridiana, Qatar Airways, buy, purchase, M&A, Latam

Qatar Airways to buy into Italian carrier

Olbia-based Meridiana is Qatar’s latest purchase

Turkish Airlines, coup, terror, Istanbul, recover, Turkey, transit, transfer

Can Turkish Airlines recover after attacks, coup plot?

Few carriers have expanded as rapidly as this one

air berlin, restructuring, cost cuts, cabin crew, pilots, union, deal, agreement, Verdi

airberlin deploys business class on Europe flights

Move is part of loss-making airline’s “strategic realignment”

Alitalia, Italy, Ryanair, bankrupt, government, bid, extend, deadline, cancellations, staff

Alitalia crews to strike this week

Cabin crew and pilots to strike for 24 hours

tuifly, joint venture, Etihad, NIKI, leisure market, charter

TUI approves joint venture with Etihad

Airberlin, NIKI and TUIfly are parts of the plan