Air Industry in Serbia Gains Traction – Important Investments Arrive, Founding of Research and Development Centers, Startups, Tech Parks Possible

Two important investments have arrived to the aviation industry sector in Serbia, which could position the country high when it comes to this field.

Namely, in Nova Pazova, the German company MTU Aero Engines has opened a jet engine parts repair factory, whereas Israel Aerospace Industries (IAI) has opened a facility for the repurposing of passenger planes into cargo ones in Belgrade, the first such facility in eastern Europe.

– It is important to note that the making of decisions on having an investment this big is preceded by detailed and all-encompassing multiyear analyses by the investor. The very fact that Serbia has been selected out of all other potential countries worldwide as the location for investments shows the importance of our comparative advantages, and they are primarily reflected in quality human resources which are capable of meeting the modern demands in the high-tech fields of the aviation industry – professor Dr Aleksandar Simonovic of the Faculty of Mechanical Engineering says for eKapija.

He points out that the newly opened facility for the repair of jet engines in Nova Pazova is of remarkable importance.

– Through joint efforts and investments of the Republic of Serbia and the company MTU Aero Engines, 400 new jobs will be created in the high-tech sector of the aviation industry. With this facility, MTU Aero Engines will raise its current repair capacities by around 25%, but also increase the number of the employees by 4%. The Republic of Serbia and Nova Pazova will get new jobs, where the salaries will be far above the state and local average. On the other hand, in the long term, it is of remarkable importance that this will create a clear professional perspective for a large number of young experts in the aviation industry in Serbia, who would otherwise build their future abroad – says our interviewee.

When it comes to the Israeli investment, when asked why companies are opting for investments in the repurposing of passenger planes, Simonovic says that the new trend is “primarily a response to the direct demands of the market, that is, a reaction of companies to the disturbance caused in air transport by the COVID pandemic”.

– In that respect, air companies, in order to meet the increased cargo transport needs, are forced to choose whether they want to lease or purchase new planes or opt for used passenger planes, where a conversion needs to be done. The nature of things is that companies, in this case, opt for a more readily available, but also more financially favorable solution.

The interviewee of eKapija also says that the potentials of Serbia can be characterized as very encouraging.

– Considering the quality of the expert workforce that is trained within the education system of the Republic of Serbia, the rich tradition of aviation and the accompanying institutions, but also observing the current situation and the existing capacities, our potentials can be characterized as very encouraging. The proof that this is correct are precisely the recent investments and the arrival of companies related to the various segments of the aviation industry – he points out.

He also says that “the development of aviation and air-space technology will continue following the strivings and goals of the further development of the society, technology and science, in both the world and Serbia”.

– Considering the recognized importance of the new investments in aviation and the effort made by the institutions of the Republic of Serbia, it is to be expected for investments to continue in this direction. In the coming period, relying on the experiences of big investors so far, it won’t be a surprise if the nature of investing rises to an even higher level. There is already a big interest in investing in the founding of research and development centers, startups and technology parks related to the aviation industry.

Aleksandra Kekic

MTU Maintenance Serbia d.o.o. Beograd

Mašinski fakultet Beograd

MTU Aero Engines

Israel Aerospace Industries

Faculty of Mechanical Engineering in Belgrade

Aleksandar Simonović

aviation industry

jet engine parts repair plant

facility for repurposing passenger planes into cargo ones

conversion of passenger planes

air space technology