Sunday, December 4, 2011

Saving Montenegro Airlines

Financial boost for Montenegro Airlines
The Government of Montenegro is coming to the national carrier’s rescue but has decided not to privatise Montenegro Airlines. The government will restructure the airline before any talks of a possible future sale is on the agenda. The airline’s mounting debt owed to its hub airports Podgorica and Tivat will be indirectly written off. In return, the state owned Airports of Montenegro, which runs Podgorica and Tivat airports, will be given a certain amount of shares in the national carrier. Furthermore, the airports have been ordered to slash their taxes and fees but only to Montenegro Airlines. The flag carrier owes 7.5 million Euros in unpaid fees to its hubs.

Montenegro Airlines will be given 400.000 Euros from the state budget on a monthly basis to cover operational costs. The debt Montenegro Airlines owes to the Serbia and Montenegro Air Services Agency will be covered through compensation. The Montenegrin government will offer the Agency ownership over the three star Park Hotel in the town of Bijela on the coast. Earlier in the year the government wrote off a total of 3.2 million Euros of debt and gave state guarantees for a 9.6 million Euro loan.

In February, Montenegro Airlines was forced to suspend flights to Priština and Skopje due to unpaid fess. An attempt to sell a 30% share in the airline last year failed despite interest from other airlines. All interested parties wanted Podgorica and Tivat airports in the sale package. In 2010 Montenegro Airlines recorded a loss of 3.7 million Euros. It is keeping this year’s financial results a closely guarded secret. In 2012 the airline plans to use its recently obtained loan to buy a new aircraft, open new routes and get one of its grounded Fokkers F100 back in the air.


  1. A couple of days ago I flew Zurich-Nis via Podgorica on Montenegro airlines. Both flights were pretty full. It filled me with optimism that Nis has a real chance and that Montenegro airlines was a good start.

    I don't know now, after reading this...

    It's too bad. With good prices, they could direct a lot of traffic through Podgorica through to Europe. I guess that's what they were trying to do with Skopje and Pristina.

  2. From spring 2012 Croatia Airlines will fly to Moscow and Warsaw, and Sofia or Bucharest (I still don’t have confirmation which one of those two). Croatia will lease two Adria Airways A319, and one of those will for sure fly on Croatia Zagreb-Moscow flights.

    Every day Zagreb-Istanbul is still questionable because Croatia can not get confirmation by Turkish authority for those frequencies. That is why TK have to fly to Zagreb just 4 flights per week, because Croatia authority does not want to give them permission for every day flights if Croatia airlines will not get same status.

  3. hey

    I checked and still no CROATIA flights to Moscow and Warsaw...anyone has more info on this?

  4. @ Purger

    Why Croatia Airlines need two additional Airbus? I can understand that they need one more for Moscow, but for Warsaw and Sofia/Bucharest I guess they will use Q400.

  5. It is brand new information. I don't know details.

    But Adria plines were very cheap. I presume that Q400 will ply to WAW, OTP or SOF and A319 will go to some other destination (I hope it will be BRU, PRN, SKP and CPH)

  6. Get SKP back!!It was very nice flying YM to Europe-always cheap, on-time, handsome FAs, nice planes!!


Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of EX-YU Aviation News. Thank you for your cooperation.