Jat and Etihad ink cooperation agreement - Direct flights between Belgrade and Abu Dhabi as of June 15th

Etihad Airways, the third- biggest Gulf airline, added Serbian national carrier JAT Airways as its latest code-share partner and said the accord should prove a first step toward a more comprehensive tieup, Bloomberg has reported.

Abu Dhabi-based Etihad will begin regular daily flights to Belgrade starting June 15 and attach its code to 23 of JAT’s European flights, with the Serbian company doing likewise on 21 Etihad services, the companies said.

- This is just a start of our cooperation - Etihad Chief Executive Officer James Hogan told a news conference in Belgrade today.

- As we move towards June 15, you will hear more about Etihad Airways and the partnership with JAT - he added.

Today’s accord may ultimately lead Etihad to take a 49 percent stake in JAT, adding to its equity stakes in Aer Lingus Group Plc (AERL), Air Berlin Plc (AB1), Virgin Australia Holdings Ltd. (VAH) and Air Seychelles Ltd.

JAT will become Etihad’s 43rd codeshare partner as the Gulf carrier seeks to build a network of allies while avoiding membership of formal groupings Star, SkyTeam and Oneworld.

- We expect this cooperation to bring benefits to our passengers, more convenient connections and better prices, which will be seen in JAT’s balance sheet in the coming months - Jat Airways CEO Ognjenovic said at the same news conference.

The number of passengers will top 1.5 million in 2013, for the first time in two decades, Ognjenovic said.

The Serbian carrier will have access to destinations including China, Southeast Asia, Australia, South Africa and North America, while Etihad will gain access to cities in western and eastern Europe.

- Through this partnership, JAT and Etihad will streamline access to and from Serbia - Hogan said.