Governance
Introduction
CEO letter
Air SERBIA’s Story
Air Serbia in 2025 - year in review
Materiality analysis and stakeholder engagement
Environment
Economic value and connectivity
Social
Appendix
6.6 Operational safety and quality standards
6.8 Memberships and associations Aviation industry associations
Air Serbia operates an integrated Safety Management System (SMS), covering all areas of the company's operations and subject to continuous regulatory compliance and external audit. As the company's highest-priority material topic, flight safety governance, performance and the underlying safety culture are addressed in full in Section 8.5 (Flight safety and security). 6.7 Employment Rulebook, grade-based system Employee remuneration is governed by the Employment Rulebook, which sets out a standardized grade-based salary framework applying consistently across all organizational levels, including the Executive Board. Executive Board roles fall within the salary grade designated by this act on the basis of established internal classification criteria, with fixed compensation aligned to the same structure as other positions. Executive Board members receive no performance-based or variable pay, sign-on bonuses, special severance or clawback arrangements; retirement benefits follow the same rules as for all employees. Executive remuneration is not linked to sustainability or ESG-related targets. Air Serbia has no separate remuneration committee. Global changes to salary levels or pay grades are approved by the company's sole shareholder, the Republic of Serbia; individual salary decisions sit within the approved annual budget, with any adjustments beyond it requiring Executive Management (including HR) approval. Executive Board salaries are also decided per the grade-based system, while the CEO's own remuneration is approved by the Supervisory Board. The company uses no external remuneration consultants, and with a single shareholder - no shareholder voting on remuneration applies.
Tourism and sector associations Air Serbia is a one of the founding member of the Association of the Tourism Industry of Serbia (ATIS), which brings together leading actors across tourism, hospitality, transport, finance, education and healthcare with the aim of strengthening the sector's institutional voice, improving the business environment and contributing to the sustainable development of tourism in Serbia. Through its founding role, Air Serbia extends its contribution to sustainable tourism beyond its own operations, supporting the development of a sector of major importance to the regional economy.
Air Serbia has been a member of the International Air Transport Association (IATA) since 1961, aligning its operations with the association's internationally recognized safety, operational and commercial standards. The company is also a member of the European Regions Airline Association (ERA), which represents more than 55 airlines and over 150 associate members. ERA member airlines provide vital connectivity to European regions, promoting social and territorial cohesion and contributing to the development of tourism, investment and employment
Air Serbia supported the eleventh "The Thread Continues" miniatures exhibition, organized by Etno mreža (the Ethno Network) and featuring motifs from Serbian textile heritage and medieval monasteries, contributing an award for one of the participating authors in the form of a return flight. Etno mreža is an umbrella association of handicraft producers from across Serbia whose mission is to preserve traditional heritage through the training and economic empowerment of women and young people for the market production of handicrafts. Through this support, Air Serbia contributes to the preservation of cultural heritage and to the economic inclusion of local craftspeople.
Sustainability Report 37
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