State denies fresh Air Serbia subsidies
The Serbian government has rejected claims it is providing the country's national carrier with subsidies after the airline's 2018 financial report revealed it received 20.9 million euros "from premiums, subsidies, grants and donations". The Serbian Prime Minister, Ana Brnabić, noted, "The Government of the Republic of Serbia did not give a single dinar, euro, dollar or any other currency to subsidise Air Serbia. What you see as income from premiums is to pay off the debt accumulated by Jat, which we have taken upon ourselves. Their [Air Serbia's] financial reports will display these payments until 2023 because this is debt owed by Jat".
Earlier this summer, Adria Airways filed a complaint against Air Serbia with relevant European institutions over what it sees as illegal state aid provided by the Serbian government to its national carrier. The Serbian Finance Minister, Siniša Mali, noted that Jat's debt amounts to 380 million dollars, which was taken over by the state in 2003 and will take a decade to pay off. "We did not have 380 million dollars to pay off Jat's debt straight away. Instead, we will be making payments over a ten-year period. We process the loan as debt repayments either through Air Serbia or directly. However, none of the money goes into Air Serbia itself", Mr Mali, who previously headed the company's Supervisory Board, said.
Air Serbia has noted it will continue to rationalise its business this year. "In 2019, Air Serbia will continue with internal consolidation, improving its business and undertaking commercial initiatives so passengers are offered greater choice (both before and after their flight), with the main focus being on technology and offering the best digital experience". It added, "Air Serbia is constantly evaluating its fleet and destination network, with a strong desire to continue linking Serbia with the rest of the world in the coming period. In addition, we plan to improve our information system, such as enterprise resource planning (ERP), with the aim to support and improve our business".
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