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Wed 21 Aug 2013 04:58 PM

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Etihad said to eye stake in Croatia Airlines

Deal would come just weeks after buying 49 percent of Serbia JAT Airways

Etihad said to eye stake in Croatia Airlines
Etihad Airways

Abu Dhabi’s Etihad Airways is reportedly looking to buy a stake in Croatia Airlines, just weeks after it sealed a deal to acquire 49 percent of JAT Airways in neighbouring Serbia.

Croat newspaper Jutarnji List claimed that before October 15 the country’s government will tender for the sale of the airline, in which it owns 90 percent, with a new investor potentially being announced in February next year.

The newspaper, citing unidentified sources, said that Garuda Indonesia and China Southern Airlines were among other possible investors. It reported that Transport Minister Sinisa Hajdas Doncic and Croatia Airlines Sinisa Petrovic were due to fly out to Indonesia next week in order to drum up interest in a deal.

Jutarnji List did not specify how much of its shareholding in Croatia Airlines the government was looking to offload, but European Commission rules specify that non-EU entities can only own up to 49 percent of the company.

Earlier this month Etihad secured 49 percent of Belgrade-based JAT Airways in a deal worth $200m that will also see the airline rebranded as Air Serbia.

Air Serbia is Etihad’s sixth equity partner, it also owns 29.21 percent of Germany’s airberlin, 40 percent of Air Seychelles, 10.5 percent of Virgin Australia, 2.99 percent of Irish carrier Aer Lingus and 24 percent of India’s Jet Airways.

The investment by Etihad is part of wider investment in the European country by the UAE. Earlier this year, the Gulf state made the largest investment in Serbia in more than 30 years, potentially helping to lift the Balkans state out of a deep recession.

Earlier in month it was also reported that Etihad was in “advanced talks” with Poland’s treasury for a potential equity investment in the country’s LOT Polish Airlines.  Etihad neither confirmed nor denied any negotiations.

An Etihad spokesperson told Arabian Business that the carrier “is
not in talks with Croatia Airlines”.

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