The Serbian government has rejected a complaint lodged against Air Serbia by Adria Airways over what the Slovenian carrier alleges are unfair state aid practices. The Serbian Prime Minister, Ana Brnabić, said on Tuesday, "Serbia fully respects the [European Union] Stabilisation and Association Agreement which forbids state aid. If someone wants to question that, they can, but I am certain Serbia will win". Last November, Ms Brnabić noted, “The government of Serbia will maintain its strong support for Air Serbia. This support will be in line with European Union regulations, as it has been so far, however, no one can prevent us or limit our support for Air Serbia”.
Adria Airways filed a complaint against Air Serbia with relevant European institutions over what it sees as illegal state aid provided by the Serbian government to its national carrier. “Adria Airways is concerned over the aid the Republic of Serbia has illegally granted to Air Serbia and believes such behaviour to be unlawful as it goes against free market principles”, the Slovenian carrier’s legal representative in Serbia, Dragan Gajin, said last month. Adria expressed its concerns to the Serbian Commission for Control of State Aid but received no reply, prompting it to take the matter further with European institutions. However, Mr Gajin has come under fire himself since he acted as a legal advisor to the conclusion of the transaction agreement between the Serbian government and Etihad Airways over the latter's takeover of Jat Airways. As a result, the lawyer could potentially be in a conflict of interest.
Adria Airways has refused to comment publically on its concerns over Air Serbia other than to confirm it has taken action within the EU. The European Commission itself has told EX-YU Aviation News it is not authorised to deal with such matters since it does not have direct enforcement possibilities in candidate countries. The Commission said it stands ready to provide any support or guidance to the Serbian state aid authority in the implementation of state aid control. According to the European Union, a company which receives government support gains an advantage over its competitors. Therefore, the EU generally prohibits state aid unless it is justified by reasons of general economic development. There are exceptions to the rules as aid worth less than 200.000 euros over three years is exempt.
Air Serbia has been listed as one of several companies which will receive subsidies from the state budget this year, however, the country's Finance Minister, Siniša Mali, noted this is in relation to debt accumulated by the airline's predecessor Jat Airways. "We did not have 380 million dollars to pay off Jat's debt straight away. Instead, we will be making payments over a ten-year period. We process the loan as debt repayments either through Air Serbia or directly. However, none of the money goes into Air Serbia itself", Mr Mali, who previously headed the company's Supervisory Board, said.


Comments
Adria reminds me of the Ottoman Empire in the 19th century. A decaying system with a misled sense of importance.
http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:805128-Slovenacka-avio-kompanija-tuzi-Srbiju-za-ono-sto-trazi
"The European Commission itself has told EX-YU Aviation News it is not authorised to deal with such matters since it does not have direct enforcement possibilities in candidate countries."
Does it mean Adria's claim is totally useless? Did Adria know that EC is not authorised in this case?
From the other side it is true that they could stop it, but Air Serbia is not enough good reason to do it. At the same time they would have to do it with Montenegro, because of YM.
But nobody can threaten them that they won't become EU members as they already know it.
That's hilarious. In that case, nothing can prevent Air Serbia to become one of the biggest airlines in Europe. You benefit all the advantages of the system but avoid all disadvantages/restrictions. Kudos!
I suppose you believe these are all good signs?
Including this one
https://www.exyuaviation.com/2017/04/adria-reaches-pilot-deal-to-prevent.html
Hehe, do you have problem with that?
And before you reply let me remind you that it is correct that EU state members are not allowed financially to support their air carriers, but from the other side they are receiving incomparably more money from EU funds than EU candidates countries, so therefore generally speaking Serbia is here not in the better position.
however, 2 ways which JU directly gets the money are problematic:
1. direct subsidies shown in the annual report
2. "hidden" subsidies that are given to JU, that are used to lower the OPEX and thus not shown in official figures, but only mentioned in the notes of the report
i do not know a way in which these two are in line with EU rules
new way of support, Niš PSO, is also not legally problematic
Which is not surprising, given the mess they've been in for a very long time now.
also vučić would take this very personally, since this is his showcase project
if they however pressure you on this that means that vučić - eu relation went sour
Air Serbia exist, it makes profit and is expanding its network.
Its by far the best airline among EXYU airlines.
Have a good day.
Otherwise Croatia Airlines would be a history by now
https://www.exyuaviation.com/2012/11/aid-for-croatia-airlines-ahead-of-eu.html
How come OU did not have to pay the money back?
EU allows state aid like it says in the article above - "justified by reasons of general economic development". But you can't give it to the same company for the next 10 years.
Official records at AJPES (www.ajpes.si/register transakcijskih računov) from today show us that JP doesn't have enough financial means to cover her outstanding liabilities that are due and also claimed by creditors.
It is not published which creditor claimed payment and thus "blocked" the accounts.
Few days ago it was only one business account "blocked", today there are all five (opened at different banks).
Also the newspaper FINANCE just published two articles on the topic.
https://www.finance.si/8950456/Nordica-zahteva-osem-milijonov-ki-so-jih-posodili-Adrii-Airways
https://www.finance.si/8950199/Rezervacije-na-TRR-Adrie-Airways-prevoznik-je-reven-kot-cerkvena-mis
They have 3 blocked accounts today due to unpaid obligations (it takes a court order to do it).
In EVERY normal European country, CAA would have revoked the AOC effective immediately to protect safety of passengers.
How can they pay maintenance or spare parts with blocked bank accounts? Pay the salaries (15th is coming)?
Not in the Balkans though...
Bye bye happiness, hello loneliness
I think I'm-a gonna cry-y
Bye bye love, bye bye sweet caress, hello emptiness
I feel like I could di-ie
Bye bye my love goodby-eye
There goes my baby with-a someone new
She sure looks happy, I sure am blue
She was my baby till he stepped in
Goodbye to romance that might have been
Bye bye love
Bye bye happiness, hello loneliness
I think I'm-a gonna cry-y
Bye bye love, bye bye sweet caress, hello emptiness
I feel like I could di-ie
Bye bye my love goodby-eye
I'm-a through with romance, I'm a-through with love
I'm through with a'countin' the stars above
And here's the reason that I'm so free
My lovin' baby is through with me
Bye bye love
Bye bye happiness, hello loneliness
I think I'm-a gonna cry-y
Bye bye love, bye bye sweet caress, hello emptiness
I feel like I could di-ie
Bye bye my love goodby-eye
Bye bye my love goodby-eye
Bye bye my love goodby-eye
Bye bye my love goodby-eye
Bye bye my love goodby-eye
To criticise using arguments is good and welcomed.
To hate is unhealthy.
Air Serbia expanding network - true
Air Serbia the best of all ex-yu - partly true ;the biggest, yes, not bad as Jat before , yes, but the best no, they are all more or less the same, within the same quality group - average
And Air Serbia making profit, for this one I can only say LOL LOL LOL. And if LOL to this makes me "hater", let be it so :)
Find me a politician in Serbia that will firmly commit to unconditionally shut down Air Serbia as soon as they take over. There is 0, ZERO, chances anyone will ever do that. Just look around! Previous government and Miskovic wanted to make Air Serbia their showcase project. Once someone else is in charge, they will put couple of their people in charge (partokratija), make a few minor changes, cut a route and open another one, and that's it! Anyone thinking Air Serbia is his project forgets that airline has been going on for 92 years.
He's a professional who sells his services to those who'll pay for them, like any one of us. He's not soulless because of that.
If that lawer has been exposed to any trade secret documents regarding EY/JU he would be in a clear conflict of interest position. What was he thinking??? Better get a face tat and apply at some Mexican drug cartel.
Now to those Adria haters - we dont need to care any of their comments because they are the same ones that cry Adria is 10 euros expensive than Air Serbia on my travel.