Air Serbia (JU, Belgrade Nikola Tesla) has transferred its ground handling unit to the Belgrade Nikola Tesla 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.