The Serbian Prime Minister, Ana Brnabić, has said that Etihad Airways will continue to be Air Serbia's strategic partner and minority shareholder for the foreseeable future. Speaking in parliament during question time, Ms Brnabić responded to inquiries from lawmakers whether the Emirati national carrier is seeking an exit strategy from its Serbian investment. The Prime Minister noted, "Air Serbia is always a topic that we in government like to discuss. Despite everything you can read about Air Serbia and the disinformation that is being spread in the media, the airline's operational results all point to growth". She added, "Etihad is our strategic partner. It is a devoted partner which has not indicated in the slightest that it plans to divest from Serbia and we are very happy about this".
Commenting on Air Serbia's operations, the Prime Minister said, "I cannot outline Etihad's plans but I can say that we are doing our utmost to make Air Serbia even stronger. Compared to 2013, Air Serbia has increased its passenger numbers by 90%, while its fleet size has grown by 23%. The airline's operations are going according to plan, but it faces strong competition on the market. Precisely because it finds itself in a competitive environment and has a professional management, sometimes it has to make some unpopular decisions, because it is not a company led by politicians. So, Air Serbia is very much in good health".
Air Serbia is undertaking a wide-ranging restructuring in an attempt to boost its key performance indicators, as it tries to keep a lid on costs, growing competition, an over-inflated workforce and the winding down of state subsidies. The carrier transitioned into a hybrid full fare - low cost airline earlier this month. The development came after Etihad Airways ordered its Serbian partner to restructure and mirrors similar policies being implemented at both the Emirati carrier and another one of its equity investments - Air Seychelles. Although there have been suggestions Etihad will divest from the Serbian carrier, the Abu Dhabi-based airline is expected to stay put at least until January 1, 2019 when its five-year investment and management agreement expires. Serbia's President, Aleksandar Vučić, recently held talks with the Crown Prince of Abu Dhabi and its de-facto ruler, Mohammed bin Zayed Al Nahyan, during which the two reviewed the expansion and diversification of the partnership, as well as its continuation. A final decision on the partnership will likely rest on the success of the restructuring process taking place.

Comments
These guys are no better .. Alitalia leftovers
I wish JU all the best of course, but would never rely on EY starting 01/01/2019. The government needs to find alternatives and not wait until the end.
no longer mention of fleet renewal and expansion.
JU is spiraling out of control because of Mr Kondic and his team. He ruined the airline.
These guys we have now are selling themselves as top experts when truth is...
Old JU seats were much better.
Iskreno se nadam da će ostati u Air Serbiji jer je to daleko bolje od AS, no sa druge strane imamo problem Etihad grupacije koja je izašla iz drugih kompanija.
Pozdrav iz Zagreba.
How many flights it operated and what was its loadfactor?
Every other airline in Europe has done so already.
i see that she is very much into industry KPIs
nincompoop puppet. also a person who gave her this kind of statistic is to be blamed.
They thought and acted as if the airline is based in SIN or LHR instead of BEG.
The result was milllons of Euros wasted...
Then in 2010 a strategic decision was made to implement Open skies even though it was not yet in force and prices started coming down and airport was again on the rise.
The main problem was unwillingness to hire professional management to restructure a company in 2004-2012 period with a reasonable amount of money.
http://www.exyuaviation.com/2018/02/air-serbia-to-end-ohrid-operations.html
They can operate the less competitive routes to with LCC to make it more attractive. Iberia - Iberia Express is a very good example. Or AF/KL - Transavia.
1) EY delivered a list of things to be done and most of them are completed, so they don't have a valid base for exit.
2) EY has very few financial obligations (no obligations more likely) towards JU, so it doesn't cost them a lot to stay
3)according to current agreement EY can exit any quarter they like
4) it is a political deal, it hardly had ever any economic sense in it
Basically they have two options:
1. Join Star Alliance and shop for a deal similar to Adria (servicing all flights to Germany from Serbia, Montenegro, Banja LUka? Skopje?)
2. Join Sky Team, but with great financial injection from AF/KLM as to survive Eurowings battle which LH would then undertake
Still waiting for a link to news about Air Seychelles extension. :)
In Podgorica Lufthansa has Austrian and Adria. Almost 4 flights per day.
In Star Alliance Air Serbia can benefit just from Tivat and Banja Luka. In all other markets Air Serbia is inferior to present LH partners.
Not sure how they got this calculated. JU has always operated the same aircraft ever since the very beginning. Maybe they meant will grow by 23%, when the A320 neos start arriving from Toulouse.
Deal with LH would need some serious political backing as to secure 150-200 weakly frequencies to Germany from Serbia (and beyond)
Also JAT used to have 6 ATR and 11 B737 - total of 17. Which is most likely how they compare it as they replaced all B737 with A32S + A330 and recently 1 = 20.
So 17 + 23% is 20, true. But as 1 a/c left the fleet the number went down to 19. Makes sense now. They are correct.
http://rs.n1info.com/a375628/Biznis/Brnabic-Etihad-se-ne-povlaci.html
You can have with or without national carrier. Jat was in urgent need of restructuring, but Serbian citizens didnot need a luxury transfer carrier which ended up as a semi LCC. We just needed a decent airline with around 1.5 pessangers providing good connections and member of bigger aliance. There were not only two scenarios, no carrier or this. If there were only two options, then I would opt for no carrier.
Exactly as you said, but that could be subject of bigger political/business plan/negotiations.
to me it looks like they think that already enough is spent on JU and that they look to lower the loss of JU to some more acceptable levels with current business model (by this i mean keep on leasing planes), then to invest further.
To say we have 23% more planes is ridiculous
https://www.danas.rs/ekonomija/er-srbija-odustala-od-kupovine-novih-aviona/
I cannot remember all details of SU offer, but you are right on the point. Huge amount of money spent, company has almost no assets, prospects grim...
@anon 3:55
Behave! There is really no need for such an attitude.
talking about wizz here, right?
prospects grim...
only if you trust Danas and the likes.
There is really no need for such an attitude.
once you drop your attitude and accept reality. ju is world's away from where it was in 2012. airport received record concession fee that could not have been reached in 2012, and most of it is thanks to growth of Air Serbia. Head of Vinci talks about supporting new long haul routes of Air Serbia and millions of new passengers at BEG and you keep ingoring that. there is really no need to hear your opinion unless you start accepting reality.
Behave no2 :)
This is a forum in which people exchange opinions, ideas and impressions. I really do not see why you are mentioning wizz air and what does it have to do with JU? It is a private owned and financed company based in Budapest and listed on London Stock Exchange.
https://i.imgur.com/w5ciBub.png
sure it is, and admin decides comment guidelines. luckily for you and few others, adhering to facts, possesing aviation knowlegde and having balanced approach in discussing issues is not required. everyone is free to take sides, ignore realities and push their interests. just because you are free to do so, does not mean everyone else including myself have to treat your biased anti-ju comments as valuable opinion. when reality and facts are counted in, your opinion is mostly just trolling. no respect.
Trolling - behave no 3 :)
and who are you to mom other people into behaving the way you see fit? use facts and arguments instead.
WOW, this is truly unbelievable!!!
They got rid of the freebies, changed their seats and adapted to the market necesseties.
The next step is to retrofit the entire fleet including YU-ARA which might see a service similar to Air Europa where you have to pay for the microphones used.
If you want luxury, you have to pay. C'est la vie, mon ami.
https://imgur.com/a/lCeNk