State to support Air Serbia as Etihad continues divestments
The Serbian government has said it will continue to provide support for its national carrier as minority stakeholder Etihad Airways continues re-sizing itself into a mid-sized airline after disposing of its stake in Air Seychelles. Etihad currently holds an 18% share in the Serbian carrier, making it the last remaining investment in its portfolio. The Abu Dhabi airline said it sold its 40% stake in Air Seychelles back to the Seychelles government. Although Etihad’s management contract at Air Seychelles has been terminated, the CEO and CFO appointed by the Emirati national airline will remain in their posts respectively until June 30, to assist with the transition.
The Serbian Prime Minister, Ana Brnabić, said, “I am proud of all the support the government of the Republic of Serbia has provided to Air Serbia. All of it. If there is a need, I will fully support any additional assistance required, in line with the European Union’s state aid rules. We pay careful attention not to be in violation of these rules as the penalties are extensive. However, anything else that is necessary for our national carrier will be provided by the government. Air Serbia saved us. Without it our citizens would be unable to return from abroad when everyone closed their boarders and cancelled flights. Without Air Serbia we would be unable to get vaccines as quickly as we have”.
Linus Benjamin Bauer, Managing Director of Bauer Aviation Advisory, a consulting firm exclusively working for the aviation industry, believes Etihad will dispose of its minority stake in Air Serbia in the coming period. “Selling its last stake in Air Serbia would be very much in alignment with Etihad's new strategy to become a boutique airline with a focus on premium in the post pandemic era”, Mr Bauer said. In mid-March, following talks with the de-facto ruler of Abu Dhabi, Mohammed bin Zayed Al Nahyan, Serbian President Aleksandar Vučić said the two discussed Air Serbia’s and Etihad’s partnership among other things, noting that “there will be more meetings concerning that matter”.
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