Etihad In ‘Advanced’ Equity Talks With JatAirways

Etihad Airways is in advance discussions with JatAirways about an equity investment in the Serbian national carrier following the signing of an Initial Memorandum of Understanding (IMU) with the Government of Serbia today.

The Abu Dhabi carrier is wasting no time in taking its commercial relationship to the next level, after starting daily flights to Belgrade on Saturday.

James Hogan, president and chief executive of Etihad Airways, said it is exploring the possibility of a “much deeper strategic commercial partnership”.

The initial codeshare agreement will see JatAirways place its JU code on the new Abu Dhabi–Belgrade flights, and will add its code to 21 destinations on the Etihad Airways’ network. In return Etihad Airways will place its EY code on 23 of JatAirways’ European flights.

An investment decision would depend on the successful completion of a comprehensive due diligence process and be subject to all necessary regulatory and respective board approvals.

The two airlines will now intensify discussions about collaborative efforts to further integrate their networks and help JatAirways raise revenues and reduce costs.

“As we have demonstrated with our minority equity investments in other airlines, significant on-going savings can be achieved through joint initiatives,” added Hogan.

These include pilot and crew training, fuel, insurance, and procurement and maintenance agreements for common engine types.