Air Serbia’s New Route to New York Reveals Minority Owner Etihad’s Major Ambitions
Photo Credit: Air Serbia recently launched much-hyped service between New York and Belgrade. Air Serbia
Skift Take
Normally, a European airline flying five times a week to New York is no big deal. But this one is different.
As Etihad Airways seriously considered buying a stake in Serbia's national airline about three years ago, the carrier was in rough shape.
Then called JAT Airways, it was controlled by the government, burdened by a small, older fleet incapable of flying longer routes and crippled by debts. But where others saw a bloated national airline, Etihad saw opportunity. It took a 49 percent stake.
As is Etihad's usual approach, it drove a hard bargain. Despite not having a majority interest, it would need to actively manage the airline for five years. It would also fire many employees, and close the carrier's home office. Abu Dhabi-based Etihad also refused to be responsible for JAT's debts.
"When an airline is broken and it's on the edge of vanishing forever, you have to be very hard nosed on how you intend to turn it around," James Hogan, president and CEO of Etihad Aviation Group, said to Skift. "We weren't part of the past. Why should we assume the debts going forward?
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