Government reinforces Air Serbia as turbulence rocks Balkan carriers

Serbia’s government has reinforced its position in flag-carrier Air Serbia, as the air transport system of the former Yugoslavia continues to suffer with the collapse of Montenegro Airlines. Air Serbia emerged in 2013 as the former Jat Airways – a successor to Yugoslav operator JAT – underwent a revamp through investment from Abu Dhabi’s Etihad Airways. As a result Air Serbia operated as a joint venture with the Serbian government owning 51% of the airline and Etihad holding the balance. But the government has opted to recapitalise the airline, increasing its share to 82% and consequently reducing Etihad’s to 18%. Air Serbia says the investment is intended to “eliminate disturbances” resulting from the effects of the pandemic. Etihad had invested in the airline at a time when it was acquiring interests in several operators, although this strategy has proven controversial after the collapse of Air Berlin and Jet Airways, and the descent of Alitalia into another administrative process. Air Serbia chief Duncan Naysmith says the government’s intervention creates the “foundations” for “uninterrupted business” and a platform to continue measures to “rationalise” the airline’s operations.<br/>