Etihad wins 5-year Air Serbia contract

Etihad wins 5-year Air Serbia contract
Updated 04 August 2013

Etihad wins 5-year Air Serbia contract

Etihad wins 5-year Air Serbia contract

Etihad Airways has unveiled plans to acquire 49 percent of JatAirways. The Abu Dhabi-based carrier has also been awarded a five-year management contract for the Serbian national airline.
These are two of the key components of a wide-ranging strategic partnership agreement, signed by Etihad Airways and the government of Serbia, which includes a fleet of new aircraft and a new integrated network of international destinations enabling greater access for business and leisure travelers to Serbia.
The historic agreement follows the launch of Etihad Airways flights between Abu Dhabi and Belgrade in June.
The new move will significantly enhance trade and investment relations between the UAE and Serbia as well as boosting the tourism sector in both countries.
Economic ties between the two countries, valued at 23.3 million euros in 2012, three times greater than in 2011, continue to expand with a number of key government agreements signed in recent months, which will see investments in agriculture, defense, technology, and tourism.
The partnership agreement was announced by James Hogan, president and CEO of Etihad Airways and Aleksandar Vucic, deputy prime minister of Serbia, at a media conference in Belgrade.
Within the agreement Etihad Airways will make available a $40 million loan facility, which will be converted into equity on Jan. 1, 2014, subject to regulatory approval.
This will be matched by an equal funding injection by the government of Serbia.
Hogan said: “We are delighted to welcome Air Serbia to our equity alliance and look forward to working constructively with them and their stakeholders to build a sustainable, competitive, and profitable airline.”
Aleksandar Vucic, deputy prime minister of Serbia, said: “Etihad Airways’ reputation, financial strength and stability will be of significant benefit to Air Serbia and we are delighted to launch this strategic partnership.