BELGRADE (Serbia), June 15 (SeeNews) – Serbia's government plans to hike the capital of flag carrier Air Serbia and is ready to increase its stake in the company should equity partner Etihad Airways refuse to take part in the transaction, the country's president Aleksandar Vucic has said.
"We will have talks with the shareholders [of Air Serbia] on Monday. Further moves will be known on Tuesday. We will ask them to give part of the money to cover the losses for the past four months," said in a video file posted on the website of private broadcaster B92 on Saturday.
Serbia considers increasing its stake in the company by subscribing a capital hike of Air Serbia alone if Etihad Airways refuses to inject funding, Vucic said. "We are ready to to provide our part of the funds. If they do not want to do the same, we are ready to recapitalise the company and get a higher stake in the airline as a result."
Earlier this month, Air Serbia notified EA Partners, an entity linked to Etihad Airways, of a potential default on two debt agreements, as a result of the ongoing economic uncertainty created by the coronavirus crisis, and due to the official closure on March 19 of airports in Serbia for inbound and outbound flights. Air Serbia stated its willingness to engage in meaningful discussions to find a mutually acceptable and suitable outcome, the special purpose vehicle noted.
The Abu Dhabi-based airline holds a 49% stake in the capital of Air Serbia, while the remainder is controlled by the Serbian government.