Etihad’s takeover process of Jat progresses
Etihad Airways will submit its offer for a minority takeover of Jat Airways by the end of this week. The offer will be submitted to the Serbian government. It will outline the amount of shares the national carrier of the United Arab Emirates is willing to purchase and at what cost. The acting CEO of Jat Airways, Velibor Vukašinović, is in Abu Dhabi this week where he will meet up with key people from Etihad Airways. The timeframes set out for the takeover, as outlined in late April, are being upheld. The screening process was scheduled to be completed by mid May while an offer is expected to be sent, as initially planned, by the end of this month.
Etihad completed its screening process of Jat’s business last week. The airline’s team of experts scrutinised Jat’s sales, destination network and overall business operations. The team also payed attention to Jat’s most recent 2012/13 winter season. Etihad is currently in the process of opening its office in the Serbian capital.
Etihad Airways CEO, James Hogan will visit Belgrade in June where he will hold talks over the proposed takeover deal. As part of the takeover, Etihad is expected take complete control over Jat’s management, naming its own CEO, head of finance and operations. Etihad will also partially finance the 1998 order made by Yugoslav Airlines for eight Airbus A319s, which have never been delivered. The national carrier of the United Arab Emirates would provide the pre delivery payment, allowing the aircraft to begin arriving in Belgrade. Etihad and Jat are also set to integrate frequent flyer programs, airport lounges and handling at airports both airlines operate to. Furthermore, Etihad will codeshare on 23 Jat Airways destinations from Belgrade while Jat would place its flight numbers onto seventeen Etihad destinations as part of the deal.