Etihad Co-partnership With Air Serbia Sealed

Etihad on Tuesday announced that an initial loan of $40 million that it gave to Air Serbia has now been transformed into shares, with the consent of the Serbian government.

"This investment is a basis for our partnership with the Serbian government and the joint efforts that we will invest to make Air Serbia regional leader in the area of air transport," James Hogan, director of Etihad, said in a press announcement.

Aleksandar Vucic, Serbia's Deputy Prime Minister, on Tuesday welcomes the fact that the strategic partnership between Eithad and Air Serbia was complete.

The agreement between Serbia and Etihad Airways was signed on August 1. The deal foresaw each side investing $40 million into the joint company, with an additional shareholders' loan each of $60 million.

The contract between the two sides has yet to be presented to public.

However, earlier this month, BIRN exclusively published details of the draft agreement, showing how Serbia and Etihad Airways planned to turn Serbia’s loss-making carrier into a sustainable, competitive airline.

Etihad owns shares in several other airliners, including Jet Airways, Air Lingus, Air Berlin, Virgin Australia and Air Seychelles.