The Montenegrin Government has run to Montenegro Airlines’ rescue after the airline reported it was in debt and in urgent need of cash. Montenegro’s government said it would guarantee 9.6 million Euros in loans to help its flag carrier to add routes, buy new aircraft and maintain its fleet, Bloomberg reports.
The carrier, whose current fleet includes 5 Fokker F100s and 3 Embraer E195s, plans to spend 4 million Euros to buy another E195 jet, while 1 million Euros will go toward repairing its existing aircraft, the Finance Ministry said. A further 4.6 million Euros will be used to fund additional new routes.
Montenegro Airlines has already made arrangements for a 2 million Euro loan from Hipotekarna Banka in Podgorica and another 2.4 million Euros from NLB Montenegrobanka, a unit of Slovenian Nova Ljubljanska Banka. It used government guarantees, approved yesterday, to take out the loans.
Montenegro Airlines was forced to suspend services to Priština and Skopje due to debt and admitted it had outstanding payments to Vienna and Frankfurt airports. This summer, the airline slashed services to its main service, Belgrade, while one of its aircraft awaits repairs.