Etihad Airways to acquire 49% of JatAirways of Serbia

Etihad Airways, the national airline of the United Arab Emirates (UAE) has unveiled plans to acquire 49% of JatAirways. The Abu Dhabi-based carrier has also been awarded a five year management contract for the Serbian national airline. These are two of the key components of a wide-ranging strategic partnership agreement, signed by Etihad Airways and the Government of Serbia, which includes a fleet of new aircraft, and a new integrated network of international destinations enabling greater access for business and leisure travellers to Serbia. Within the agreement Etihad Airways will make available a US$40m loan facility which will be converted into equity on January 1st, 2014, subject to regulatory approval. This will be matched by an equal funding injection by the Government of Serbia. Etihad Airways and the Government of Serbia will also each provide further funding through shareholder loans and other funding mechanisms of up to US$60m to meet working capital requirements and support network development for the newly created Air Serbia.