ETIHAD TO SECURE FUTURE OF SERBIAN AIRLINE

Etihad Airways has unveiled plans to acquire 49% 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 travellers to Serbia. The historic agreement follows the launch of Etihad Airways flights between Abu Dhabi and Belgrade in June and will significantly enhance trade and investment relations between the United Arab Emirates and Serbia, as well as boosting the tourism sector in both countries. Within the agreement Etihad will make available a US$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. James Hogan, Etihad Airways’ president and chief executive officer, commented, “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. In addition to creating scale, our renowned business model provides a unique common platform to drive synergies and cost savings, which will be of considerable benefit to Air Serbia as the new airline evolves.”The rebranding and renaming of JatAirways to Air Serbia is a significant moment in the history of the Serbian carrier, which is more than 80 years old. Tail fins on Air Serbia aircraft will feature the Serbian coat of arms and the country’s state colours on both sides. The new livery was designed by a team in Serbia and the UAE and provides a new look and feel for the national airline. The aim was to make a break with past practice, but not with Serbian heritage and also offer an unmistakeable national identity. Among other planned developments will be an enhanced flight network, codesharing with Etihad Airways and airberlin, adding to Air Serbia’s current network of 33 cities another 12 destinations in Africa, Europe and the Middle East. The new destinations are Abu Dhabi (complementing Etihad Airways’ daily service), as well as Banja Luka, Beirut, Bucharest, Budapest, Cairo, Kiev, Ljubljana, Prague, Sofia, Varna and Warsaw. (http://www.etihad.com)