UAE national airline Etihad Airways said it had received requisite government and regulatory approvals, consent and permissions for its strategic partnership with Air Serbia.

With this approval, Etihad said it had now become a 49 per cent stakeholder in Air Serbia.

Etihad president and CEO James Hogan said that as a result of confirmation of requisite regulatory approvals, the initial loan to Air Serbia of $40 million will now be converted to equity.

On August 1, 2013, the Government of Serbia had signed a strategic, long-term agreement with Etihad Airways, and unveiled a $200 million plan to revitalise Air Serbia.

This investment represents an important partnership with the Serbian government as we work together to build Air Serbia into the leading airline in the region, said Hogan.

Deputy PM Aleksandar Vucic said Air Serbia was the only major airline in the region to have successfully partnered with a leading global airline such as Etihad Airways. "We are proud the national airline of Serbia now stands shoulder-to-shoulder with the best in the world," he stated.

Air Serbia CEO Dane Kondic, pointed out that the national carrier had a strong business plan, and a clear Government mandate, to be a safe, best-in-class and profitable airline.

"We have already achieved a remarkable transformation of the national airline of Serbia and are looking forward to the journey with our new shareholder and strategic partner, Etihad Airways," he added,.-TradeArabia News Service