EC clears Air Serbia after investigation

The European Commission (EC) has completed its investigation into Air Serbia’s ownership structure, determining that Etihad Airways’ investment in the Serbian carrier is in line with European Union rules on ownership and effective control of airlines.

The ruling comes just a month after the United States Federal Aviation Administration also found that effective control at Air Serbia lies with the government and not its part-owner Etihad. The EC launched an investigation into Etihad’s investments in European airlines in April 2014 as part of a wider examination into whether foreign ownership of European carriers complies with EU airline licensing rules. While Serbia is not an EU member state, as a candidate country it must adhere to the Union’s pre-accession policies and guidelines.

Following Etihad’s takeover of Jat Airways, the EC requested for Serbia to clarify the airline’s new ownership structure. While a carrier from outside Europe can hold a minority stake in an EU airline or a country aspiring to join the block, it must prove that the effective control is still in the hands of the majority shareholder.