The US aviation regulator has given safety clearance to Serbia, opening the possibility of greater access to the American market for its flag carrier, Air Serbia.
Etihad in August acquired a 49 per cent equity stake in Air Serbia, formerly known as Jat Airways, and shed 333 jobs as it pledged to invest US$40 million in the carrier.
Serbia now has what is described as a category 1 rating in the United States.
Since 2006, Serbia held a category 2 level of non-compliance, which applies to a country that either “lacks laws or regulations” needed to adhere with international standards or indicates that the country’s civil aviation authority is “deficient in one or more areas.”
The category 1 rating means Serbian airlines can fly to the US and codeshare with American carriers.
Air Serbia’s fleet comprises 18 medium and large aircraft, which it operates mainly in Europe.
Analysts say that the airline will be using Etihad’s wide-body jets and this could potentially hurt American carriers.
“Air Serbia will likely have to load a widebody jet or jets from Etihad if it seeks to start flights quickly to the USA,” said Saj Ahmad, the chief analyst at Strategic-Aero Research.
“It’s possible Etihad will start codesharing, too, thus plucking more passengers onto its network - albeit at the expense of US carriers – so you can appreciate why some US airlines were dubious and concerned about Air Serbia being granted access,” Mr Ahmad added.
It comes amid increasing capacity on some international routes from the US, which has forced some carriers in the country to cut fares.
Etihad has attracted renewed attention over it strategy of expansion through equity investments in struggling carriers as it seeks to complete the acquisition of a 49 per cent stake in Italy’s Alitalia.
The deal, which is subject to final regulatory and shareholder approval, has triggered the threat of strike action later this month by pilot and flight attendant unions in the country.
“Etihad is spreading its European wings successfully through airberlin and Air Serbia. The question is whether they can do the same with Alitalia,” said Mr Ahmad.
Selgazzar@thenational.ae