Air Serbia's position "remains stable"

Air Serbia has said its position remains stable after two members of the Etihad Airways Partners group, Alitalia and Air Berlin, filed for insolvency over the last two months, while another, Darwin Airline, was sold to new owners. In a statement, an Air Serbia spokesperson said, “The latest developments in Air Berlin do not affect Air Serbia. As said previously, the Government of the Republic of Serbia and Etihad Airways are fully committed to the strategic partnership with Air Serbia. The national flag carrier has started the process of consolidating its business, reducing costs and increasing efficiencies, in response to changing market conditions".

The Serbian carrier acknowledged that the business environment remains difficult. "Despite the serious challenges facing the aviation industry on a global scale, the position of Air Serbia remains stable. Our national airline is the leading carrier in the region with a strong network of flights that serve a total of 42 destinations in Europe, the Mediterranean, the Middle East and North America, with passenger and freight services”, the company noted. Recently, the Etihad Aviation Group's Chairman of the Board, Mohamed Mubarak Fadhel Al Mazro, said, "The Board and executive team have been working since last year to address issues and challenges through a comprehensive strategic review aimed at driving improved performance across the group, which includes a full review of our airline equity partnership strategy". Former Etihad CEO, James Hogan, who has spearheaded the equity investment strategy, which has now unraveled, and is credited for expanding the Emirati carrier at an unprecedented rate, stepped down from his post in June.

Air Serbia recently posted a net profit of 900.000 euros for 2016, which is down 76.9% on the previous year, although the decrease has been put down to the significant investment made in the launch of the carrier's first long haul service to New York. However, according to various Serbian media reports, Air Serbia received some forty million euros from the government last year. Furthermore, the media has suggested that Etihad sold Air Serbia expensive loans, while the government continued to cover debts made by Air Serbia's predecessor Jat Airways. The Serbian carrier has not responded to the claims, noting only that it will focus on strengthening its commercial results, improving the efficiency of its operations and maintaining its focus on cost control and balance sheet discipline in 2017.