Air Serbia requests 82% cut in Etihad Partners loan

Air Serbia Airbus aircraft at Belgrade Airport


Air Serbia has requested an 82% reduction in the repayment of its multi million dollar debt to Etihad Airways Partners I BV and Etihad Airways Partners II BV, after launching talks with the special purpose vehicles set up by Etihad Airways in 2015. The carrier previously informed the funding vehicles that due to the financial strain caused by the coronavirus Covid-19 pandemic it may not be able to meet its obligations and payments. “Based on the recent market and economic projections for the future, the borrower [Air Serbia] has assessed what it believes will be its likely revenue in the short and medium term leading up to the repayment date. Based on such forecast, the borrower has indicated that the loan would need to be reduced by 82% in order for the borrower to 1) continue to operate until the repayment date, and 2) generate and accumulate the necessary cash to make such payment once trading activities recommence”, EA Partners said in a statement. The 82% reduction refers to each of the two loans individually. It should be noted that Air Serbia's part-owner Etihad Airways does not run the Etihad Airways Partners funding vehicles nor does it play part in its decision making process.

Five years ago, Etihad embarked on an international roadshow in Abu Dhabi, Dubai and London by creating the funding vehicles. The group successfully raised 700 million US dollars, which was split across the seven Etihad Partners entities, including Air Serbia. The funding vehicle comprises largely of local and international investment funds. In September 2015, Air Serbia concluded a loan for 52.9 million US dollars from EAP I BV which matures next month with an annual interest rate of 6.96%. Furthermore, it finalised a loan for 63 million dollars with EAP II BV on May 20, 2016, which matures in June of next year. Air Serbia made its most recent interest payment in March.

The Serbian carrier has indicated that it is prepared to provide the Etihad Partners investors with details on how it concluded it would need to reduce the debt by 82%, together with its projections and financial models. “As of date hereof, the issuer [EA Partners] does not have any further information in relation to the borrower’s proposal. The issuer will provide further updates to the holders of the notes upon receiving further information in due course”, EA Partners concluded. Air Serbia recently outlined it was undertaking a number of cost saving measures in order to alleviate the effects of the Covid-19 pandemic. The airline has rationalised its fleet, renegotiated leasing terms for its aircraft, secured slots for 2021, deferred the payment of air navigation taxes for next year, as well as reduced airport fees and capital investments, among other measures.

Comments

  1. Anonymous09:02

    They are practically admitting they are bankrupt.

    ReplyDelete
    Replies
    1. Anonymous09:06

      No, they are admitting that paying back these loans would bankrupt them. Don't forget that JU refunded all tickets which were requested meaning their cash reserves have gone considerably down. Even loads now are light meaning cash incomes are still low. There is a reason why airlines like LH got 9 billion Euros because they themselves couldn't pay their bills.

      Delete
    2. Anonymous09:08

      Exactly opposite, ask what you can (it turbulent times), not to be bankrupt..

      Delete
    3. Anonymous09:08

      They are actually using the chance given by current situation to try to minimize obligations. Smart.

      Delete
    4. Anonymous09:09

      I can confirm they are way better in tickets refunding than Lufthansa is!

      And LH got something like 9 billion EUR from German Government

      Delete
    5. Anonymous09:11

      Social media would disagree. People are complaining they are not getting their refunds.

      Delete
    6. Anonymous09:12

      I am not saying they are good.

      I am saying they are way better than market leader as LH is! Now you can see and conclude how Lufthansa is doing terrible job with tickets refunding.

      Delete
    7. Nemjee09:15

      My LCA tickets were refunded in about a week after I submitted the request. So obviously it works for many.

      Mind you, a lot of European airlines have not refunded tickets. Even those who have already received millions in aid.

      Delete
    8. Nemjee09:16

      FYI

      https://www.wsj.com/articles/airlines-are-withholding-billions-in-refundsthats-billions-with-a-b-11597238005

      Delete
    9. Anonymous09:19

      For the tickets I purchased on airserbia.com I got refund within 1 week.

      For the tickets purchased through agencies I had to wait much longer

      Delete
    10. Anonymous09:20

      I would say that Serbs who are complaining most know nothing. I had ticket in AirSerbia and in Brussels Airlines.
      It took me "long waiting time" for AS agent to reply of 20 minutes and 10 minutes to go through options and to receive vauchers on my mail. I saw so many complaints how this is unbelievable long waiting time, how they are stealing money etc.
      In the same time, I took me "only" 3 calls to BA to get flight rescheduled ( refund was not even option). For each of the calls I had to wait between 1 and 2 hours ( ONE and TWO, yes) to get agent pick up and 3 times like that to get date changed only. I haven't seen too many Belgians complaining about this as they show understanding for the exceptional situation we are all in.

      Delete
    11. Anonymous09:32

      I got my three refunds from Air Serbia within 2 weeks. For two tickets bought directly from AirSerbia I got refund on my credit card, while for ticket bought through agency I got voucher.

      Delete
    12. Anonymous09:39

      @09:20 I agree with you as I have the same situation with TK in trying to get my refund since March. Just a side note to say that the Corona thing is now used more as a major excuse by many to drag their feet, do little and have a justification for terrible customer service (as it used to be great in the past).

      Delete
    13. Anonymous09:46

      I am waiting for my fully flexible/red tariff ticket refund since 19 May (date of first request). It only took 5 emails and 2 phone calls for them to get a new promise on Tuesday that it will be done in 40-45 days!

      Delete
    14. Anonymous09:51

      I had a total of 11 tickets spread across August - October. I received vouchers for all of these (+10% added to each voucher value) within 3 days of submitting my request. Please stop spreading hate. Air Serbia has been one of the most efficient airlines when it comes to coronavirus related ticket refunds. On the other hand, other major airlines like South African Airways, which is a member of Star Alliance, have ben giving me countless problems.

      Delete
    15. Anonymous09:53

      ^ so if someone didn't get a refund in months that's "spreading hate"?

      Delete
    16. Anonymous09:57

      No. I'm saying that this generalisation of inefficiency are actually individual issues and not the standard.

      Delete
    17. Anonymous10:00

      No but it should not be presented as a fact because obviously refunds at JU are done efficiently and professionally.

      Delete
    18. Anonymous10:06

      And where is a connection between 115 million loan and refunding tickets?

      Delete
    19. Anonymous10:22

      Simple cash flow, try to read any business 101 book.

      Delete
    20. Anonymous11:10

      Didn't have a problem with LH refunding the money for my daughter and myself. Everything was done in 5 days for our flight from YYZ to DBV.

      Delete
    21. Anonymous11:54

      You must be the exception

      https://de.trustpilot.com/review/www.lufthansa.com

      Delete
    22. Anonymous12:30

      Suprisingly Lufthansa refunded all my tickets after a short call within two weeks. The same occurred to my friends as well, so it seems this has not been a lucky exemption ...

      Delete
    23. Anonymous16:23

      It has not occured to me. Waiting for more than 5 weeks already.

      And there are so many cases where LH did not refund the money that they all established facebook group called RECHARGE.

      So, yes , you were lucky exemption.

      Delete
    24. Anonymous16:23

      They would not be able to pay that loan even if there was no corona.

      Delete
    25. I am still waiting for my LH refunds. They are "being processed" for the past two months. But they will come.

      Delete
  2. Anonymous09:04

    Will they agree?

    ReplyDelete
    Replies
    1. Anonymous09:05

      Of course they will agree, almost every business out there has reprogrammed their loans.

      Delete
    2. Anonymous09:06

      I don't see how this is reprogramming. When you reprogram debt both parties are better off.

      Delete
    3. Anonymous09:08

      Not necessarily, in many cases debt is reprogrammed with lower interest rates because the financial institution would rather earn less than lose everything once the other side goes bankrupt.

      Delete
    4. Anonymous09:10

      You think the loaning party is better off by writing off 82% of the entire loan???

      Delete
    5. Anonymous09:11

      Like I wrote to you below, it's not clear from the text what they are asking. From point one and two it seems like they are asking for a grace period during which the loan payments will be reduced by 82%.

      ps chill with the exclamation marks.

      Delete
    6. Anonymous09:13

      Apparently they have already rejected this and are asking for the full sum.

      Delete
    7. Anonymous09:13

      Could you please provide link for that piece of news?

      Delete
    8. Anonymous09:14

      http://rs.n1info.com/Biznis/a629468/N1-dosla-do-dokumenata-Er-Srbija-trazi-otpis-veceg-dela-dugovanja-Etihad-odbio.html

      Delete
    9. Anonymous09:17

      Thank you.

      However I believe this is very important part of the news

      Autentičnost ovog dokumenta i navode koji stoje u njemu, pokušali smo da proverimo u kompaniji Etihad Ervejz, ali do emitovanja ovog priloga, odgovor nije stigao.

      Delete
    10. Anonymous09:19

      Well they can claim anything they want but if they didn't include any pictures then why should we believe them? Just because they are N1 which is anyway biased against anything related to the Serbian government?

      Delete
    11. Anonymous09:20

      Etihad Airways has little to do with this.

      "It should be noted that Air Serbia's part-owner Etihad Airways does not run the Etihad Airways Partners funding vehicles nor does it play part in its decision making process."

      And good luck getting a statement from anyone at Etihad about anything. Most at the airline don't even know they own part of Air Serbia.

      Delete
    12. Anonymous09:24

      @9.19 you would find a way to defend them either way.

      I don't know who in their right mind would allow someone to reduce their loan by 82% and then go as far as delaying the remaining 18%

      Delete
    13. Anonymous09:31

      N1 can't be named as a reliable source. I mean, they have anti-government agenda, so they are practically against everything that has government behind (I DIDN'T say that Pink and RTS are reliable either, they're not)

      Delete
    14. Anonymous09:32

      If they wrote the fund had accepted this proposal you would say they are extremely reliable.

      Delete
    15. Anonymous09:36

      But they didn't write that, they never write anything positive about JU.

      Delete
    16. Anonymous09:36

      LOL kids

      Delete
    17. Anonymous12:21

      Yeah, as much I dislike the ruling party, N1 is most absolutely not an independent and unbiased source. They have their own agenda and they are super into bashing mid-sized and enterprise-sized government-owned businesses. And it's not hard to deduct why they are so keen on that - N1 is owned by a huge investment fund; it's very likely they are trying to lower sale value of these companies so their and partner investment funds can get them at cheaper prices if/when they are privatized. Regardless, not much difference between N1 and Srpski telegraf et al. regarding aviation in Serbia.

      Delete
  3. Anonymous09:04

    No surprise there, almost all airlines have used this opportunity to get a better deal from banks and creditors. Unfortunately for JU, it's network and income was severely restricted by covid crisis. It's a true shame because their financial performance was improving over the years. Let's hope all these charters help them out a bit overcome all this. Seven charters tomorrow, not bad.

    ReplyDelete
  4. Anonymous09:04

    Ouch

    ReplyDelete
  5. Anonymous09:07

    I think this is a wise move forward, restructure the loan and repay it over a longer period of time. Many airlines in Europe got loans from government to service their debt, so more debt to pay off existing debt. Not a good formula.

    ReplyDelete
    Replies
    1. Anonymous09:08

      This is not about delaying payment it's about reducing the loan by over 80%!

      Delete
    2. Anonymous09:10

      Actually it's not clear from the text because if you read point 1 and 2 it seems like it's a delay in the repayment process.

      Delete
    3. Anonymous09:11

      Good move by JU

      Delete
    4. Anonymous09:12

      @9.10. It is crystal clear. They want to cut 82% from the loan value and pay the remaining 18% later.

      Delete
    5. Anonymous09:15

      "wise move forward" ..LOL

      Delete
    6. Anonymous09:19

      Makes sense, they should get it.

      Delete
    7. Anonymous10:10

      Promise for 18% is better then zero.

      Delete
  6. Anonymous09:12

    Air Serbia are obviously in deep financial trouble. Although the Serbian government will keep them safe.

    ReplyDelete
    Replies
    1. Anonymous09:15

      Which airline isn't?

      There is no doubt JU will survive this with or without help of GoS. With this move in current situation they just try to gain some extra benefits.

      Delete
    2. Anonymous09:16

      You think that they can survive this without aid... LOL!

      Delete
    3. Anonymous09:18

      Nobody can.

      Ask LH

      Delete
    4. Anonymous09:21

      you just claimed JU can

      Delete
    5. Anonymous09:24

      No, that is what you wanted to see.

      They are in deep financial problem the same like LH, AF, OS, OU... And I just said that despite your wishes one way or another JU will survive this.

      Delete
    6. Anonymous09:26

      I wanted to see this? You wrote it!

      "JU will survive this with or without help of GoS"

      Delete
    7. Anonymous09:26

      Sure. And you can be sure they will!

      Delete
    8. Anonymous09:28

      Make up your mind then. You obviously have no idea what you're rambling on about.

      Delete
    9. Anonymous09:35

      The difference between the likes of LH, AF OS and JU being that they the first were profitable businesses before Corona, and JU never was.

      Delete
    10. Anonymous10:02

      AF has struggled for years and in many ways they used KL profits to cover their losses. Same with OS, they haven't published financial reports on their website since 2013. They also brag about having EBIT profit but are complete silent on their results after interest and taxes. How interesting, no?

      Delete
    11. Anonymous10:12

      OS three times broke, SN two times, Swiss two times, what are you talking?

      Delete
  7. Anonymous09:22

    it's amazing how many fans this airline has. People defend it for absolutely everything they do.

    ReplyDelete
    Replies
    1. Anonymous09:37

      Because there are many who attack them no matter what.

      Delete
    2. Anonymous09:40

      Exactly opposite, it's amazing how many people would like they go bankrupt...
      They had many mismatch in the past and not everything they do is good enough but even if they find way to do smth smart people will use opportunity to express their irony and slight over them.
      It is enough to see number of comments for article, and if it has many, you know for sure in the title stands "Air Serbia" and everything is horrible, terrible, etc...
      Many guys proved they are "experts" only when talking about ASL, they live for those days.

      Delete
    3. Anonymous09:41

      I know! Right? Comparing it with LH and OS. Lol.
      They basically support it even though it cancels flights, lost luggage complaints increasing but yes, let's defend it. Unbelievable.

      Delete
    4. Anonymous09:49

      If your only job is to more or less write comments and defend everything related to Serbian government - of course this company gets loads of fans.

      Delete
    5. Anonymous09:56

      Anon 09:22
      In the past it was much more "cheerleaders" here, nowdays "haters" are dominant...so do not even think to say that anything related to ASL is not excellent , but just good...
      Every bad situation with other companies is quite understandable and so what, but same with ASL is unforgivable ...Let's shut it down before new morning.

      Delete
    6. Anonymous10:09

      Haters are dominant? You never saw JU comment section?

      Delete
    7. Anonymous10:29

      Anon 10:09
      Lol....read more carefully every day, and you will conclude by yourself

      Delete
    8. Anonymous10:37

      Give me a definition of "hate" comment.

      Delete
    9. Anonymous10:56

      No matter how hard to some is to admit, but AirSerbia is good company and has good service. They also built their brand well and positioned as company you like. That is the reason for so many fans here, I would say.
      What is the reason for hate, I don't know. Even if someone had some bad experience, I still see no reason to hate.

      Delete
    10. Anonymous11:01

      I never hated Air Serbia and never will, but Im often here called to be hater because I dont consider them as a successful company.

      Delete
    11. Anonymous11:28

      How long did it take for EK, LO, BT, LH, A3...to become successful companies? Why is everyone expecting JU to do it overnight? It took Wizz over a decade to start reporting their financial reports.

      Delete
    12. Anonymous11:48

      A3 is a private owned successful company which made money all these years except the economical crisis ones.

      Air Baltic got 100 million lats (130€) in 2011. for covering losses, next year they cut losses from 121 to 27 million. In 2015. they got more 130 million from private investor for fleet modernisation so they ordered 50 A220s. Last year they lost 7 million without any state aid.

      So whats JU waiting? Cost of national carrier in Serbia to now is 500 million euros. Still company has no new orders, it needs to pay 115 million loan... Simply JU is not doing so good as BT or A3 .

      Delete
    13. +1000 anonymous 11:48. Especially for A3, they were successful since day 1!!

      Delete
    14. JATBEGMEL14:59

      @ 11,48

      We already discussed the 500 million EUR figure, the other day as a matter of fact, and that that number is incorrect, regarding Air Serbia.

      You also have to take into consideration that the government has pushed for projects such as JFK which has affected the finances of the airline. Just removing the investment into launching and maintaining JFK the past few years would give a different picture of their finances. This wasnt the case in either A3 or BT.

      Even still, something has come from the investment into the company. 13 younger aircraft have entered the fleet, rebranding, expansion in destinations and frequencies, new website, 2 mobile apps, onboard wifi, dedicated business class lounge at BEG, migration to Sabre booking system, new base in INI, flights launched from KVO, amongst others.

      Delete
    15. Anonymous16:21

      500 million is the cost of having a national carrier in Serbia. Maybe that is not Air Serbias aid but it is a cost of making Air Serbia.

      People are saying how JFK route become profitabile so how it then effecting their finances? Or what is the real financial result of JFK route?

      Everything is nice what you said, but just compare what A3 done with 0 euros from goverment or BT with 130 millions from private investor.

      Delete
    16. Anonymous19:44

      True. If JFK was easy to sustain, then why did most Eastern European carriers pull out?
      During socialism, almost all opersted flights there. Still remember MA, VV and LZ with their 767, OK and RO their A310, OA with their A340.
      It is an expensive route with lots of competition but I guess it gives JU a lot of prestige, which is understandable.

      Delete
    17. Nemjee06:10

      It all boils down to whether you see JU as a national, strategic asset or not. If you do then you will understand the role it plays in macroeconomic terms and how it helps maintain Serbia's economy competitive. If JU was to be shut down, how many routes out of BEG would disappear and how would we bring them back? Through subsidies given to airlines like FR or W6? JU has the ATR thanks to which many regional routes can be profitably and efficiently operated. Would that be the case with Wizz Air's high density A321?
      The real question we should be asking ourselves is whether JU is on the right track or not? If you say no because they are losing money then you also have to explain why you think their improving finances are not good enough reason to keep investing in them.

      After all, civil aviation is an expensive business where profit margins are rather thin. It's unrealistic to expect JU to be as competitive as A3 or BT when JU has so many hurdles placed in front of it starting with the government's constant meddling in its affairs.

      Delete
    18. Anonymous19:26

      Improving finances means when you make less losses of more profit , not opposite. And JU is doing opposite when you consider they are making less and less profit every year. From about 15 million in 2017., to 12 million in 2018. and 9 million last year while aid is still about 20 million every year. So this is not good reason at all to invest.

      And is it helping to Serbian economy when you invest 500 million in national carrier just to exist? Is that helping to economy or opposite?

      JU should just try to become profitabile and thats it. They are trying it for 7 years and still I dont see when they will become an independent carrier from the state. It is possible and it can be done.

      Delete
    19. Nemjee08:47

      First of all, that 500 million was explained many times, that is why the number is wrong. I guess it doesn't really matter to you because you obviously have an agenda.
      Furthermore, what matters is that subsidies are going down. I think last year they reached a new record low of €19.7 million. If we remove JFK flights then the loss itself comes close to €10 million which is pretty much ok given the circumstances.

      From all that I read in your post(s) I can only assume you don't work in the private sector as business consolidation and revenue growth seem to be foreign concepts to you.

      Delete
    20. Anonymous09:56

      Expain then what is the cost of having the national carrier in Serbia?

      Ok you only understand finances and I do not, because I dont see improving results when you got 1.3 million less aid while you make 6 million less profits. Very successful airline....

      Delete
    21. Anonymous10:01

      Just to add

      Is 115 million € loan also part of "improving results" or it is "national interest"?

      Delete
    22. Anonymous10:49

      Both

      Delete
  8. even if there was no COVID this would happen. i wrote like a 2y ago that debts will be a problem and that government will have to take over and make sizable payment on account of some "helping tourism in serbia" grounds

    anyone who thinks JU is generating money is:
    a) 5y old
    b) doesn't know a thing about aviation
    c) voting for mr vučić

    ReplyDelete
    Replies
    1. Anonymous10:03

      Truth be told you wrote many things in the past most of which were completely wrong.

      Delete
    2. No one ever said that JU is generating money in its own right. But the case can be made that they're a net contributor to the Serbian economy.

      Delete
    3. Anonymous10:10

      Im always trying to explain this to the people, but they always call me a hater.

      Delete
    4. Anonymous10:14

      My questions is, if there wasnt corona, would JU be able to pay its loans or the state would be respponsible again?

      Delete
    5. Anonymous11:27

      Why are people behaving as of the state is some poor creature that is abused by JU? Many problems with JU are exactly because of the state starting with JFK. If they lost €11 million to JFK but got €19 million in aid from the state then it means JU itself lost around €8 million which is a great result.

      Delete
    6. Anonymous06:14

      @ Petar Čelik

      You definitely classify under b) and every single post you write confirms this. Quite often you literally chisel in stone that you have no clue about aviation but are very good in identifying the voters of "Mr. Vučić".

      Stick to daily politics where you belong.

      Delete
  9. Anonymous10:01

    Another way to reduce costs is forget about primary airports and focus on secondary and even tertiary ones. Concentrate more on charters.

    MXP to BGY
    OSL to TRF
    TXL to SXF
    BCN to GRO or REU
    BRU to CRL
    German villages: FKB, HHN, FMM, LEJ
    Charters to HBE, HRG, SSH, DAR, CMN, AGA.
    JFK sell slots and move to LGA.
    Add 2nd aircraft in INI and add more routes.
    Base 1 ATR in KVO and do the same with INI.

    Make the water paid and offer premium economy in JFK just like AF.

    Offer small bag and 10kg fares just like W6 and FR.
    Offer scratch cards on board.
    Offer paid kosher, hindu meals
    Offer paid headsets just like UX.

    Upgrade mobile app and allow people to book. Extra revenue from application.

    ReplyDelete
    Replies
    1. Anonymous10:39

      Air Serbia is a legacy airline and it has no any sence to move from legacy to the LCC airports. They should take more regional jets in the fleet and try to make airline independent from the state aid.

      Delete
    2. Anonymous11:21

      Haha yeah because flying to primary airports is the reason why they are losing money.
      Even LCCs have eventually launched flights from main airports. There is a reason why an airport is considered as primary while others are not.

      Delete
  10. Anonymous11:24

    Resumptions of flights to MNE will be fantastic for JU because it will further boost their revenue making this Corona crisis easier. Flights are not cheap while flights are short and expenses low.

    ReplyDelete
    Replies
    1. Anonymous12:33

      Who will go to MNE last week in August?

      Delete
  11. Like all other airlines, JU will need some government money. However, Etihad will have to contribute as well, given that it is part-owner. It can either contribute directly to the company with liquid assets (like cash) or in other ways (aircraft - which it has in surplus).

    The interest rate is much too high for this loan and should be reduced by at least 4%, which would bring $4.5 million in interest savings annually.

    Otherwise, bankruptcy is not as dramatic as it used to be, given that JU does not have as many assets as it had in the past. Re-establishing a new airline might be cheaper than paying off a loan with an unreasonable interest rate. The average age of the fleet is 21 years old.

    The lenders would have a lot more to lose ($100+ million) if JU goes bankrupt than if the Serbian government were to re-start from scratch a 100%-owned national airline spending $100+ million).

    ReplyDelete
    Replies
    1. Anonymous17:38

      a short and concise answer LOL to anon 12:38 emotional plea and hope.

      you think Air Serbia dictates the narrative of its debt? that JU will wield its lever of power and force conditions on the financial markets....LOL LOL LOL

      what planet do you live on?

      The opposite is true, the financial lenders will PUMMEL JU and take full ownership, and there goes YU in the hands of a financial group like Adria, good luck.

      Delete
    2. to anon 17:38 [LOL] - this is where the 51% ownership majority has the benefit. It means that the Air Serbia can decide independent of Etihad on whether or not to go bankrupt, unless there is a specific clause in the contract that would require more than 50%, but I'm pretty sure EU rules prohibit such a clause.

      Moreover, the creditors do have any power to take full ownership - they only can go after the debt and money owed. They would get some of their money back through the liquidation process, but I doubt that JU has $100+ million in assets for the full amount.

      Etihad does not own JU, it has less than 50% ownership. It is not the creditor to JU either, as the lenders are a separate company. Take the examples of the other airlines that Etihad had partial ownership in that went bankrupt - there was no "take full ownership" or "PUMMEL"ing.

      Good lesson learned here about foreign ownership; make sure that the State owns more than 50%.

      Delete
  12. Anonymous13:30

    Legitimno je pokusati izvuci sto vise iz nastale krize.Srecno.

    ReplyDelete
  13. Anonymous17:28

    Economics 101 :

    When a borrower admits it can’t repay its creditor its 53+63= 116 million dollar debt, your Bankrupt.

    OMG, I had no idea Air Serbia was SO heavily in debt at 6.9% interest!!!!!!

    Do you actually think Etihad will be merciful? why would they be?

    Disappointed and disaster....

    ReplyDelete
    Replies
    1. Anonymous21:45

      Nisu uzeli pare od Etihada.

      Delete
  14. AirCEO22:53

    Creditor rejected 18% and is asking for a full amount? That's a bad response to Air Serbia's anchoring. With Covid creating a mess in the aviation world creditors have to settle for a lot less. They might be able to negotiate more than 18% but still nowhere near the full amount they are asking for. Air Serbia should hire top business negotiator to get them a solid deal close to efficient frontier.

    ReplyDelete
  15. Anonymous07:18

    Etihad as the owner of 50% of the debt should be much interested in a debt cut ...

    ReplyDelete
  16. Anonymous13:19

    No one forced Air Serbia to borrow such amount at such interest rate. After 55 months out of 60 the life of the transaction Air serbia just realized that it has a problem! think about the local investor's for bit.

    ReplyDelete
    Replies
    1. Anonymous15:44

      Of course nobody forced them to borrow at such rates, but it is easier to funnel more money this way, isn't it?

      JU serves it purpose, just as Telekom Srbija does, the only difference being the fact that TS don't have that many fanboys justifying every move it makes.

      Delete
    2. Anonymous10:45

      But Serbian Railways...Have you forgotten them?

      They made huge loss and not a single hater remembered them despite the contribute to Serbian economy much, much more than Air Serbia

      Delete
  17. Just imagine serbia without JU.... we could be in mercy of lcc...

    ReplyDelete
    Replies
    1. Anonymous10:46

      Such as W6 to London or BVA...Min 300 EUR RT.

      Real LCC

      Delete
  18. They're bankrupt

    ReplyDelete
    Replies
    1. Anonymous10:41

      Let me quote some dear neighbours...

      "JU is in Serbian DNA".

      No matter how pationate you wish it JU is not going belly up as GoS will never allow it.

      Delete
    2. Anonymous06:16

      Does your life finally make sense Michael?

      Delete
  19. Anonymous09:09

    https://www.reuters.com/article/us-etihad-airways-debt-restructuring-exc/exclusive-etihad-bondholders-put-airline-on-notice-with-debt-revamp-sources-idUSKBN22X1CS

    ReplyDelete

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