Serbia has increased its ownership stake in Air Serbia from 51 to 82 percent, while Etihad Airways’ share has been reduced from 49 to 18 percent
As stated, the increase of the share capital of the Company was undertaken in order to eliminate the disturbances in the economy caused by the pandemic of the infectious disease Covid-19.
Air Serbia CEO Duncan Naismith thanked the Serbian government for supporting the national airline to overcome business obstacles caused by the corona virus pandemic in the most difficult year in the history of passenger air traffic.
He added that in this way the foundations for further uninterrupted business have been created and that, with fundamental measures to rationalize 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 indirect contribution to the Serbian economy, primarily transport and tourism.
The recapitalization of the Serbian national airline was undertaken at the request of Air Serbia, in accordance with the decree of the Government of Serbia from October 2020, which envisages the measure of recapitalization of economic entities affected by the pandemic.
The decree is fully harmonized with the Provisional Legal Framework of the European Commission, which regulates state aid measures to support the economy during the current Covid 19 pandemic, including recapitalization, the airline said in a statement, Tanjug reported.
At the request of the Government of Serbia, the State Aid Control Commission reviewed the proposed measures and confirmed that the measure of increasing the share capital of the Company was harmonized with the positive legal regulations of the Republic of Serbia, which created conditions for recapitalization.
The Minister of Finance, Sinisa Mali, stated for Tanjug that the process of recapitalization of the national airline Air Serbia was completed today, which changed the ownership structure, so that Etihad will be the 18% owner of Air Serbia, and the remaining 82% of the Serbian states.
Mali points out that the money paid for the recapitalization will be used to repair the losses that Air Serbia had during the pandemic, but also to repay certain debts that the company has to the banks.
“In the right way, we have thus stabilized our airline, as well as its balance sheet, strengthened the state’s participation in it and repaid some loans and debts that it made due to the corona,” said Mali.
He adds that in the past two months, the state has worked very carefully, patiently and dedicatedly on the restructuring program and on the process, as he stated, of state aid to the airline, which, Mali reminds, was allowed to European countries by the European Commission.
“The whole EU has allowed it. Germany helped Lufthansa with nine billion euros, France helped Air France with six billion euros, so we also helped our national company and completely stabilized it,” Mali points out.
He points out that Montenegro did not have a way to help its airline Montenegro Airlines, precisely because, he says, they did not adhere to the defined EC rules on state aid.
Not only is Air Serbia entering 2021 without any problems, but, adds Mali, a step further is being considered – how to use the empty space on the lines from Tivat and Podgorica, in order for our company to earn more money and maximize the lines.
He points out that Air Serbia is of national interest and reminded that during the pandemic, that company brought medical equipment, respirators, medicines, but also our citizens from numerous world destinations where they found themselves at that moment.
Mali also emphasized that the plan for restructuring the company was adopted last week, Politika reports.
