Air Serbia to restructure
Air Serbia will restructure its business for a second time in six years in order to produce savings and enable the government to provide state aid to cover losses incurred during the coronavirus pandemic. The Serbian Finance Minister, Siniša Mali, said a plan for the restructuring program will be adopted by the end of the year. “The airline has been working on a restructuring program for months, similar to the likes of Air Baltic and other European carriers. The government can not help the airline with a single penny until the restructuring program is adopted, which is in line with European Union regulation on state aid. The Serbian carrier was profitable up until the start of the Covid-19 pandemic, so the government will only cover the losses resulting from the crisis”.
Mr Mali said that once the restructuring program is adopted, it will be reviewed by the Serbian Commission for State Aid Control, after which it will be sent for approval to the European Commission. Although Serbia is not a member of the European Union, as a candidate state it must adhere to European Union regulation in order to progress in its negotiations to join the block. “Once we send it to the European Commission for approval it will be clear to everyone exactly how much money will be given and for what. I think it is clear that we will support our national carrier”, Mr Mali noted.
Restructuring entails reorganising the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organised for its present needs. Air Serbia previously drafted a restructuring program in 2016, which saw the company transform from a full fare into a hybrid carrier. It included the termination of unprofitable routes, reorganising parts of the business to produce savings and increasing other revenue streams. The program was approved by the State Aid Commission in 2018. “Every country has provided support for their national airline. So, there is no difference between what the Serbian government plans to do and what other European countries have done so far. We will not allow for the national carrier to fail. Air Serbia is restructuring, the number of employees is being reduced, wages have been slashed and unprofitable routes terminated”, Mr Mali said.
0 Response to "Air Serbia to restructure"
Post a Comment