Serbia's government plans to set up a new debt-free national airline, according to Finance and Economy Minister Mladjan Dinkic.

"We have plans to form a new airline, which would have no debts, and we also plan to renew our old deal with Airbus for the lease of 12 new planes, for which the state would guarantee EUR 140 M to the new company," Dinkic told Blic daily, as cited by B92 radio.

Serbia's Finance Minister explained that the main partner of the new airline would be Etihad Airways from the United Arab Emirates, which would give guarantees for the money and become a co-owner of Serbian national carrier JAT Airways.

Dinkic also noted that the UAE had also expressed interest in economic partnership with Serbia, most notably in the sphere of food supplies.

He made clear that fast and reliable supplies of food products required a modern logistics system including a port on the Danube in Novi Sad and a cargo terminal at Belgrade Airport.

Dinkic assured that this would allow fast deliveries of fresh fruit and vegetables from Serbia not only to the UAE but also to the European market.

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