Etihad Airways reduces Air Serbia ownership stake
Based on the contract between the Ministry of Economy of the Government of the Republic of Serbia and Air Serbia, the Serbian national airline has been recapitalised, with the state increasing its ownership share in the company from 51% to 82% while Etihad Airways' stake has been reduced from 49% to 18%. The increase in the company's share capital had been undertaken in order to mitigate the effects of the coromavirus pandemic.
Air Serbia's CEO, Duncan Naysmith said, "We are grateful to the Government of the Republic of Serbia for providing support to the national airline to overcome business obstacles caused by the coronavirus pandemic in the most difficult year in the history of passenger air traffic". He added that "in this way, the foundations have been created for further uninterrupted business and that, with fundamental measures to rationalise the company's operations, which are already well underway, Air Serbia will be able to overcome difficulties, strengthen its position as a leader in the region and continue to provide direct and an indirect contribution to the Serbian economy, primarily transport and tourism."
The recapitalisation of the Serbian national airline was undertaken at the request of Air Serbia, in accordance with the decree of the Government of the Republic of Serbia from October 2020, which envisages the measure of recapitalisation of economic entities affected by the pandemic. This regulation is in line with the European Commission's Provisional Legal Framework, which regulates state aid measures to support the economy during the current Covid-19 pandemic, including recapitalisation.
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