"Air Serbia to contribute USD 211 million to economy"

"Air Serbia to contribute USD 211 million to economy"

The study projects that the airline’s direct expenditure on its day-to-day operations and its strong supply chain economic footprint in Serbia will generate USD 190 million for the national economy this year.

In addition to this, Oxford Economics said that the airline is expected to carry 2.5 million passengers in and out of Serbia in 2015, to and from a range of markets, including countries across Europe and the Middle East.

International visitors to the country are estimated to spend close to half a billion USD this year, accounting to a value-added contribution of USD 373 million to the GDP, supporting a further 22,400 jobs. By 2020, the economic footprint of the airline, related to tourism, is projected to increase to USD 572 million, supporting a total of 28,200 jobs.

Oxford Economics "highlight that the economic impact of an airline go far beyond its operational footprint. The services it offers facilitate a wide range of economic activity in both the local and global economy - from establishing business interactions and facilitating foreign investment to encouraging tourism and trade," the statement said, and added:

"This impact can be measured by the airline’s overarching contribution to air connectivity as a key driver of economic development and growth, facilitating a country’s participation in the global economy. Global data also suggests a correlation between inward foreign direct investment (FDI) and air connectivity."

In 2015, Air Serbia’s contribution to passenger and cargo connectivity is expected to boost Serbian productivity by USD 690 million. This is equivalent to nearly 32,000 jobs and equates to nearly two percent of the national GDP- "As well as being crucial to the growth of the tourism industry, Air Serbia will also be vital for export-oriented business, especially for links with the European Union. This will encourage exports and increase competition in the local economy, benefiting consumers," the company said in the statement quoting the study.

“This study is a clear testament to how Air Serbia, as a commercially-effective and profitable airline, is making a significant impact on Serbia’s economic development, and contributing to other industries as a facilitator for economic activity. The report demonstrates how Air Serbia’s strong performance, since the inception of the airline, creates positive effects not only within our business, but also externally to companies and individuals across the country," Air Serbia CEO Dane Kondic said.

Chairman of the Supervisory Board of Air Serbia Sinisa Mali "reminded that the privatization of Air Serbia in partnership with Etihad is the most successful in our country."

"Through this strategic partnership we demonstrated that, from a lossmaking airline, it is possible to create a profitable company that is no longer a liability to the state budget. Air Serbia now is a driver of Serbia's economic development. The Oxford Economics study shows that there is a direct link between a successful airline, the introduction of new destinations and the level of economic growth, i.e. the development of business in our country. Therefore, it is important that we continue moving in the same direction, to enhance Air Serbia's fleet, to launch new destinations, as in doing so we will also strengthen the Serbian industry and economy," Mali stressed.

Air Serbia was launched as the Serbian national airline in October 2013, and serves more than 40 destinations in Europe, Mediterranean and Middle East directly. The airline also offers long-haul and international destinations in Asia, Australia and Americas through its code-share partners and its equity partner, Etihad Airways that holds a 49 percent share.