Serbia Takes Full Control of Air Serbia as Etihad Exits

In a pivotal development, Serbia is set to acquire the remaining stake in its national carrier, Air Serbia (JU, Belgrade), currently held by Etihad Airways (EY, Abu Dhabi International). Finance Minister Sinisa Mali announced the move during a news conference, emphasizing the country’s commitment to taking full ownership of the airline and steering its strategic direction.

“From a company that was in bankruptcy, we turned it into a leader that now flies on four continents, in a large number of countries, and we have become an example of how, through a successful airline, you can further contribute to the economic development of your country,” Mali declared. The transaction is expected to be finalized on November 13, marking a significant shift in the airline’s ownership structure.

While specific details about the acquisition were not disclosed, Mali characterized it as a “business decision” on Etihad’s part. The Serbian government, now holding the reins, envisions further development for Air Serbia, including the procurement of large aircraft and the exploration of new destinations to strengthen the airline’s global footprint.

Etihad Airways, which initially acquired a 49% stake in the struggling Jat Airways in 2013, later rebranding it as Air Serbia, will exit its co-ownership by selling its remaining 18% share. By the end of 2020, the Serbian state had already increased its stake from 51% to 82%, paving the way for greater control over the airline’s operations.

This move signifies a strategic shift for Air Serbia, freeing it from external ownership and positioning it for enhanced growth and operational autonomy. The exit of Etihad Airways comes after Air Serbia successfully settled significant loans, demonstrating financial resilience amidst challenging times.

While Serbia’s ruling Progressive Party hails Air Serbia as a success story of partial privatization, questions linger about undisclosed contracts between Serbia and Etihad. As the state takes full control, the focus turns to the airline’s future trajectory, with potential expansions and a renewed commitment to economic contributions on the horizon. Etihad Airways and Air Serbia have yet to provide comments on the development. Stay tuned for further updates as Serbia’s flagship carrier charts its course in the evolving aviation landscape.