State hints at post-Covid Air Serbia expansion
The Serbian President, Aleksandar Vučić, has hinted at plans to expand the Serbian carrier in certain markets in the region once the coronavirus Covid-19 pandemic eases. Mr Vučić noted, “We will strengthen and further develop Air Serbia which literally saved us at this time. It brought back thousands of our nationals, from places as far away as Cuba and Bali. Imagine what we would have done without our national carrier. They have transported tons of cargo and supplies from China, Russia, the EU and the United States. Since there will be a shortage of money in our region, we will expand such state-owned companies in different places across the region, but I don’t want to reveal more details at this point”. The company has not publicly commented on any of its future plans.
The President has been continuously reiterating Air Serbia’s importance for the country over the past two weeks and has committed to providing financial support for the company, naming it as one of the pillars of Serbia’s economy. The Serbian government has said it will stimulate the economy following the global health crisis through large-scale spending. The International Monetary Fund this week estimated Serbia’s economy would contract by 3% this year but would grow 7.5% in 2021.
Last week, the Serbian Ministry for Construction, Transport and Infrastructure said Air Serbia had registered over forty million euros in direct losses as a result of the coronavirus. It added the airline faces a long road to recovery which would stretch into 2021. The country has previously said it will provide financial support for its national carrier either through recapitalisation or corporate bonds. Air Serbia has scheduled May 1 as a tentative date for its resumption of operations, although this will depend on the country’s ongoing state of emergency and the lifting of its ban on commercial flights. Air Serbia has been operating an average of two daily repatriation services since it was grounded on March 20. It has also transported several thousand tons of aid. At this point, the airline has seven new routes scheduled to launch in May and June.
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