State yet to issue corona aid to Air Serbia
The Serbian Minister for Construction, Transport and Infrastructure, Zorana Mihajlović, has said the state is yet to issue aid to Air Serbia to cover the losses incurred during the ongoing coronavirus pandemic but noted it would do so after Air Serbia completes talks with its partners. “Even though we have approved it, we still haven’t issued any financial aid to Air Serbia. The carrier is in talks with its partners. Once those are complete, we will, of course, as the state do our part. There is no doubt that we will help, as it is being done around the world. The EU itself is suggesting for governments to help their national carriers”, Ms Mihajlović said, without specifying the amount that would be provided to the airline.
The Serbian government had previously said it would offer wide-ranging support for its national carrier. The Minister for Finance, Siniša Mali, noted it would assist Air Serbia with the repayment of two loans, valued 52.9 million US dollars and 63 million dollars, labelling the airline as being of national interest. The company will see the first of the two loans mature this month. Mr Mali said, “We are negotiating with the creditors. While I can’t reveal the contents of those talks, I can say that we will certainly help Air Serbia. We are working towards resolving this problem together with our partners at Etihad Airways”.
For its part, Air Serbia has said it was developing several business scenarios for the coming years but noted it was difficult to make concrete plans when travel conditions are unknown and constantly changing. The company is undertaking a number of cost saving measures in order to alleviate the effects of the Covid-19 pandemic, including rationalising its fleet and renegotiating aircraft leasing terms. It launched a program entitled “Deliver” back in March, aimed at reducing capital investments and services which are not of vital importance for the company. “This continues to significantly contribute to the company’s liquidity. Furthermore, the company has used the suspension of slot rules in Europe and the United States, as well as its primary markets, to secure the same slots for 2021”, Air Serbia said. The Serbian carrier has secured credit lines from commercial banks up until December 31 and has deferred deposit requests from several airports. Based on its financial report, Air Serbia was the beneficiary of 19.7 million euros in donations last year.
0 Response to "State yet to issue corona aid to Air Serbia"
Post a Comment