Etihad in talks to invest with Jat Airways?
26 / 06 / 2013
ETIHAD Airways, the national airline of the United Arab Emirates, is in advanced discussions about taking part-ownership of Jat Airways, the Serbian national carrier.
An Initial Memorandum of Understanding (IMU) between Etihad and the Serbian government has been signed in Belgrade.
Details of the planned equity investment were unveiled by James Hogan, president and chief executive of Etihad Airways, and Velibor Vukasinovic, JatAirways’ chief executive.
An investment decision depends on the successful completion of a comprehensive due diligence process and is subject to all necessary regulatory and board approvals.
The two airlines will intensify discussions about collaborative efforts to further integrate their networks and help Jat Airways achieve efficiencies, build revenue, and reduce costs, Hogan states.
“As we have demonstrated with our minority equity investments in other airlines, significant on-going savings can be achieved through joint initiatives. These include pilot and crew training, fuel, insurance, and procurement and maintenance agreements for common engine types.”
The announcement follows the launch of Etihad Airways’ daily flights between Abu Dhabi and Belgrade last month.
Apparently, there has already been strong support for the new service from the business and leisure sectors, particularly in Australia, China and the UAE, and load factors continue to grow.
“Etihad Airways’ Abu Dhabi hub is ideally placed to link Serbian communities from all corners of the globe including those in Australia and the Middle East,” Hogan points out.