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Etihad gears up for Air Serbia takeover

Etihad Ariways will take over its 49% stake in Air Serbia on Wednesday, including full ownership over Air Serbia Ground Services and Jat Catering. As a result, Etihad will turn the forty million dollars it has invested into Air Serbia since August into equity. A further 200 million dollars will be invested from January 1, 2014. Etihad has snapped up stakes in seven airlines from Australia to Ireland over the past two years. It is currently assessing whether to invest in Italy’s troubled Alitalia. Etihad’s goal is to quickly boost traffic and cut costs on its own network without buying hundreds of planes and expanding globally, company officials say. The airline’s CEO, James Hogan, admits its investment into Air Serbia was initiated by the Abu Dhabi government but denies the airline was forced into making the purchase, branding it instead as a commercial strategy. “If an opportunity like Seychelles or Serbia appears, and we’re asked to look at it, we look at it. Unless it makes sense commercially, we don’t step into it”, Mr. Hogan says.

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