Jat Airways is to rebrand as Air Serbia following the purchase of a 49 per cent stake by Etihad.
The Serbian government has unveiled a strategic partnership with Etihad which includes a five-year management contract for the Abu Dhabi-based carrier to run Air Serbia.
Both the government and Etihad are injecting $40 million to secure the future of the Serbian carrier with both parties also promising to provide $60 million in further funding for Air Serbia.
Under the deal, Air Serbia will also launch flights from Belgrade to Abu Dhabi from October.
Etihad CEO James Hogan (pictured) said: “We are delighted to welcome Air Serbia to our equity alliance and look forward to working constructively with them and their stakeholders to build a sustainable, competitive, and profitable airline.
“We will have tough decisions to make but the financial investment by Etihad Airways and the government of Serbia, together with the positive impact of our joint management expertise and experience, will help ensure this airline, with its proud history, now has an even brighter future.”
Etihad already has shareholdings in five other airlines: Air Berlin (29.21 per cent), Air Seychelles (40 per cent), Virgin Australia (10.5 per cent), Aer Lingus (2.99 per cent) and Jet Airways (24 per cent).