As of next year, the Serbian government no longer intends to subsidize Air Serbia directly from the federal budget. It is the first time in about nine years that no funds have been set aside for the carrier in the budget.
How much money Air Serbia has been allocated by the government over the years is kept as a big secret in Serbia. It is clear that there were considerable funds, because after Etihad Airways gradually withdrew from the loss-making holdings, the government in Belgrade jumped into the breach. This had the advantage for the airline that fates like those of Jet Airways, Air Berlin, Darwin Airline and Alitalia were spared. The golf carrier is still active as a minority shareholder, but the loans granted have been repaid in the meantime.
Air Serbia is on a list of around 60 companies that the government considers to be of particular importance. Around 2022 million euros were budgeted for this in 80. Furthermore, the carrier receives additional subsidies, which are granted, for example, in the form of route subsidies. The annual report shows that around 20,8 million euros per year flowed to the airline.
However, government officials claim that Air Serbia was not directly subsidized. The funds would be used to clear legacy assets left over from the Jat Airways era. This was committed to when signing the contract with Etihad Airways. For this reason, these debts are to be reported in the annual report by 2023 and have so far also been budgeted for in the state's annual budget.
Air Serbia will definitely not be dropped. The government has announced that it will continue to support the carrier in line with EU regulations. At the same time, however, they added as a side swipe: "No one can prevent us from reducing or ending our support for Air Serbia". It can therefore be assumed that any further grants will simply be budgeted under a different heading and that not much will change de facto.