Government approves guarantee for investment in Air Serbia

The Serbian government has made a decision to confirm the Development Fund's guarantee enabling the joint investment of Jat Airways and Etihad Airways in the new flag carrier called Air Serbia, the government told Tanjug news agency on Thursday.

Namely, Jat got the green light to issue a guarantee through the Development Fund so Etihad from the United Arab Emirates could invest in the Air Serbia company, Head of the government's Media Relations Office Milivoje Mihajlovic confirmed.

The Serbian government made this decision at its session on Wednesday (16 October 2013).

As it was announced earlier, Etihad will extend a credit line of USD 40 million to Air Serbia to serve as the principal capital of the new company as of January 1st.

Cooperation between Jat and Etihad Airways and the establishment of the new flag carrier Air Serbia are not in breach of the European Common Aviation Area (ECAA)agreement, the Civil Aviation Directorate of Serbia announced Wednesday.