Last month, the Government of Serbia upped its ownership stake in its flag carrier by purchasing additional shares. This is the second time for Serbia to do this, leaving Etihad with a dwindling share of ownership in Air Serbia. The Serbian government now owns almost 85% of its flag carrier.
In late September, the Government of Serbia registered a purchase of 1,818,820 Air Serbia shares in the country’s Central Securities Register. The purchase cost it 1.82 billion dinars ($15.2 million), and it is the latest such move by the state. Serbia’s stake in its flag carrier is now worth some $110 million.
The minority partner in Air Serbia, Etihad, now owns 16.42% of the airline. When Air Serbia was launched in 2013, Etihad held 49% of the shares in the airline.
The Serbian state and Air Serbia are tightly linked, and this explains the large amounts of state aid provided for it. As a result of direct cash injections and PSO funding, the airline is aiming to return to profit this year. Its CEO, Jiri Marek, said: “This year we are aiming to be profitable and we will continue to be on that path in the future as well. We want it to stay like that. Air Serbia will continue to be the leading regional carrier in the Balkan region.”
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