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FINANCIAL NEWS
Etihad Airways agrees to buy 49% in Serbia’s JAT Airways
02 Aug 2013
(MENAFN) Etihad Airways has agreed to buy a 49 percent stake in Serbia’s loss-making JAT Airways in a groundbreaking deal that would lift the Eastern European carrier from its troubles, Reuters reported.
The carriers said in a joint news conference that Abu Dhabi-based Etihad would provide a USD40 million loan facility to JAT, which would be converted into equity on January 1, 2014.
The amount would be matched by an equal Serbian government capital injection. JAT would also be renamed Air Serbia.
The airline and the Serbian government also would each provide further funding of USD60 million through shareholder loans and other funding mechanisms to meet working capital requirements and expand the Air Serbia route network.
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