Thursday, July 22, 2010

Montenegro Airlines privatisation

New privatisation model for Montenegro Airlines
Talk of Montenegro Airlines’ privatisation is once again on the agenda after several months. The Government of Montenegro has decided to change its privatisation strategy for the national carrier. It will offer 30% of the airline’s shares with the possibility of the buyer increasing their ownership to 51% after two years. Although Israel’s El-Al was one of the most interested buyers, along with the European Bank for Reconstruction and Development, it is believed that the small number of shares offered was a strong deterrent for both companies. Furthermore, El-Al was requesting ownership over “Airports of Montenegro”, the Government run operator of Podgorica and Tivat airports. The Montenegrin privatisation agency states that other companies are also interested in purchasing Montenegro Airlines, including companies from Russia and Germany, the “MINA” news agency reports.

Meanwhile, Podgorica Airport was closed for traffic yesterday from 10.00 due to engine problems on an Ilyushin cargo aircraft. It has been reported that parts of the engine scattered across the runway upon landing. The airport was reopened for traffic at 12.30.


  1. Let s just hope we don t see any russian money in Montenegro Airlines.....
    I don t like them stepping into the ex Yu market, not politically, not with investments, not at all

    ex Yu should head it s sensors towards Western Europe, the US and Asia

  2. @JU520 BEGLAX
    You obviously have no idea about financial situations of the region do you? What is wrong with a Russia investor?

  3. 1.
    "Furthermore, El-A was requesting ownership..." should read "Furthermore, El-Al was..."

    Clearly, El-Al is after a monopoly position whereby they control all (international) airports of a country and own the majority of shares in the only national airline. Who would want to do that? So, although Montenegrin authorities get accused a lot by a certain section of the regional population as corrupt crooks, I must say that this proves them otherwise. Montenegrin passengers and visitors to Montenegro would stand to loose big time if this were to take place. So, I think one can easily conclude that the statement "the small number of shares offered was a strong deterrent for both companies" holds no water.

    @ JU520 BEGLAX

    I'm afraid you're right. There is nothing wrong with, say, your average Russian investor, however, Russian businesses already own a great deal of major companies and prime real estate in Montenegro and that leaves the country too exposed to events in Russia. It's simply not good to have all your eggs in one basket. Unless you're desperate, I'd rather wait for the right kind of buyer to approach me.

  4. @Air Koryo

    Russia has and always had strategical interests for the ex Yu Region. When I see what their contribution for the past 70 years in Europe was, I say only: keep where u are and make sure you clean your own house before start heading your sensors towards other corners.

    My advice to the region is:

    Focus on the EU, North-America, Turkey and emerging worlds powers and markets such as Asia (Japan), China and Brasil.

    Democratic spirit and free live comes from the Western part of the world and definitely not Russia.
    And ex Yugoslavia still has to learn a lot about a democratic and free society..

    My view might be hard, for some too hard, but i m sick and tired of the situation the ex Yu Republics are today. And instead of taking their fortune into own hands and develop and look ahead, they keep dreaming, waiting and hoping for others to clean their own turds..
    Russia money might be easy but mostly not clean and not for the long run..
    You want to live good for long, you need to think and plan in the long-term

  5. @JU520 BEGLAX
    You must be joking me, if Russia is not democratic you are insane! Also do you wish to learn "Democratic spirit and free live" I think you mean free life but have it your way from quote "Turkey, Asia, China and Brasil. hahahaha Democracy doesn't eixst their my friend.

    Go get yourself some basic political skills!

  6. If Milo and company get a good comission;-)


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