Adds Etihad's assertion, background on earnings DUBAI, Dec
Adds Etihad’s assertion, background on earnings
DUBAI, Dec 31 (Reuters) – Abu Dhabi-based Etihad Airways’ stake in Air Serbia has been reduce to 18% from 49% after the Serbian authorities recapitalised the airline, Air Serbia mentioned on its web site.
The state has elevated its stake in Air Serbia to 82% from 51%, a step the airline mentioned was undertaken to assist it via the COVID-19 pandemic.
“The recapitalisation of the Serbian nationwide airline was undertaken on the request of Air Serbia,” the assertion mentioned.
Etihad Airways, which purchased a 49% stake in Serbia’s loss-making JAT Airways – later renamed Air Serbia – in 2013, confirmed in an electronic mail its stake had been diluted to 18%
“We’re happy the Serbian authorities has reinvested in the way forward for the airline,” an Etihad spokesperson mentioned.
“Etihad continues to work carefully with Air Serbia, whereas we reply to the continued impression of the COVID-19 disaster on our personal enterprise.”
Etihad Airways’ core working loss deepened to $758 million within the first half of the yr as passenger site visitors fell by almost 60% as a result of pandemic.
Aviation has been one of many industries worst hit by the COVID-19 disaster, forcing airways to put off workers and search authorities bailouts. Etihad has slashed jobs and salaries.
Etihad as soon as sought to compete head-to-head with main Gulf hub carriers Emirates and Qatar Airways, however its technique, together with taking minority stakes in different airways, didn’t bear fruit. It made losses within the final 4 years previous to 2020.
(Reporting by Saeed Azhar; Enhancing by Jason Neely and Jan Harvey)
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