Etihad Airways and Serbia's Government signed (17-Jun-2013) an initial MoU to discuss an equity investment in Jat Airways. The airlines will discuss further integration of their networks and collaboration to improve Jat Airways' efficiencies, revenue and cost reduction measures. The proposed investment would depend on the successful completion of a comprehensive due diligence process and be subject to regulatory and board approvals. The airlines commenced codeshare operations on 15-Jun-2013 and Etihad Airways commenced daily Abu Dhabi-Belgrade service on the same date. The airlines plan to expand their codeshare network to include Etihad Airways' services from Abu Dhabi to Bangkok, Beijing, Brisbane, Chengdu, Chicago, Colombo, Ho Chi Minh City, Islamabad, Johannesburg, Karachi, Kuala Lumpur, Kuwait, Lahore, New York, Melbourne, Seychelles, Shanghai, Singapore, Sydney, Toronto, and Washington and Jat Airways' services from Belgrade to Amsterdam, Athens, Berlin, Brussels, Copenhagen, Düsseldorf, Rome, Frankfurt, Gothenburg, Istanbul, Larnaca, London Heathrow, Milan, Moscow, Podgorica, Sarajevo, Skopje, Stockholm, Stuttgart, Thessaloniki, Tivat, Vienna and Zurich, subject to government and regulatory approval. Etihad Airways president and CEO James Hogan said, "These are early days but we are excited about the future and look forward to exploring the possibility of a much deeper strategic commercial partnership with Jat Airways. As we have demonstrated with our minority equity investments in other airlines, significant on-going savings can be achieved through joint initiatives. These include pilot and crew training, fuel, insurance, and procurement and maintenance agreements for common engine types...As the partnership between Etihad Airways and Jat Airways deepens, and new codeshare destinations are added, we will see greater numbers of travellers being fed across the two networks. This will increase further with the codeshare between Etihad Airways’ equity partner, airberlin and Jat Airways, which will link Belgrade, via Berlin, to Chicago." [more - original PR]
Etihad Airways and Serbia's Government to discuss equity investment in Jat Airways
You may also be interested in the following articles...
Emirates has multiple reasons for cutting back on US capacity
As the most conspicuous and largest, Emirates Airline often takes on its shoulders the increasingly difficult task of defending Gulf aviation. Emirates often single handedly represents the Gulf and "Middle East Big 3", in much the same way as Dubai carries regional geopolitics.
Just as there are significant differences between the Big 3 US airlines who have strenuously opposed the Gulf carriers in the US market, so Emirates is fundamentally different from its peers: it is longer established, has a larger home market and has had a more commercial mandate from the beginning.
Yet Emirates must compete in a market where many others would like a piece of that market. Just as Dubai Inc modelled itself in many ways on Singapore Inc, there are many who would follow the same trail. This does not lead to steady market conditions.
Certainly the policies of US President Trump have hurt aviation and tourism. But Emirates' announcement of a 19% reduction in services to the United States is less about US policies and more about the nature of the market forces that started before Trump was even a serious Presidential contender.
Lufthansa and Etihad: equity tie up could further align mutual strategy, but marriage unlikely
Greater cooperation between Lufthansa and Etihad reflects their local and global challenges growing in quantity and complexity. Contact between the two has led to speculation that the partnership could radically expand to include an equity tie up, with rumoured merger talks.
Their initial Dec-2016 codeshare announcement was, in practical terms, small but showed the possibility, as they stated, to expand cooperation. However, it would be a leap to go from their handful of codeshares to a 17-Jan-2017 article from Italian daily newspaper Il Messaggero that Etihad could invest in Lufthansa on the way to a possible merger between the two. A subsequent denial in a Reuters story that "A financial stake is out of the question at the moment", does little to dispel the rumour. Were it not for the last three words of that statement the rumour would lack credibility.
There is certainly logic for a deeper partnership - and the two have danced this waltz before. Equity involvement from airlines can cement partnerships, add to board influence and partially allow one side to gain financially from any matter it feels it is compromising away. Nevertheless, there are obstacles to a full blown merger, and even to Etihad's taking a 30% to 40% stake. A marriage between the new bedfellows does not seem an immediate prospect. Nonetheless the logic is there for a move; and the mere fact of a potential move is sufficient to rock the equilibrium.