Etihad Airways to Acquire 49% of JatAirways, Rebrand as Air Serbia
Etihad Airways announced that it will acquire 49% of JatAirways, the national flag carrier of Serbia, which will be renamed and rebranded as Air Serbia. The airline is scheduled to begin service to Abu Dhabi in October of this year with four flights a week from Belgrade.
Etihad Airways was awarded a five-year management contract for the newly-renamed Serbian airline. In addition, Etihad and the government of Serbia will each make a $40 million loan facility available to the airline, which will be converted into equity on January 1 of the coming year.
Each airline will also provide additional funding through shareholder loans and other funding mechanisms of up to $60 million. This money is intended to be used to meet working capital requirements and also to support network development for the airline.
New destinations will also be added to Air Serbia’s current network through codesharing with Etihad Airways and Air Berlin, including Abu Dhabi, Banja Luka, Beirut, Bucharest, Budapest, Cairo, Kiev, Ljubljana, Prague, Sofia, Varna, and Warsaw.
The airline will operate flights using Airbus A319 aircraft. The planes will be outfitted in Air Serbia livery
(Photo: Accura Media Group)