Air Serbia (JU, Belgrade) has transferred its ground handling unit to the Belgrade airport operator as of November 1, the Sloga Aerodrom Nikola Tesla labour union has said.

According to a statement, Air Serbia Ground Services (ASGS), a unit of some 340 employees, was transferred by the carrier in order to improve its profitability. Both companies are state-owned, but while the government holds 83.1% of shares in the airport, it only owns 51% of shares of the airline with the remainder held by Etihad Aviation Group.

Etihad Airways has previously suggested a number of cost-cutting measures to Air Serbia, Politika magazine reported. The airline is reportedly looking to dispose of its catering unit and might introduce buy-on-board meals (BOB) in the near future.