Etihad Airways announced that they are close to coming to an agreement over an equity investment with JAT Airways.

Deputy Prime Minister Aleksandar Vucic mentioned that Serbia is hoping for a successful deal between JAT and Etihad. He added that there was a possibility that JAT airways would be renamed as Air Serbia.

Vucic commented, "We will be ... proud of Air Serbia, which will be more successful and better than JAT Airways."

Etihad and JAT signed a preliminary agreement last month pertaining to a possible equity investment.

Serbia aims to offload its loss making state firms which includes JAt Airways, the Zelezara Smederevo

steel mill and Galenika Pharmaceuticals to keep up with the 2013 deficit in their budget.

Etihad Airways is the official flag carrier of the United Arab Emirates (UAE). Established in 2003, the Etihad headquarters are based in Abu Dhabi. Etihad operates more than 1300 flights per week and caters to 86 cargo and passenger destinations in the Asia, Europe, the Middle East, Africa and the Americas.