Monday, November 12, 2012

Montenegro Airlines covers up millions in debt

Mounting debt and conflict of interest rocks Montenegro Airlines

The Montenegro State Audit Institution has found that Montenegro Airlines has covered up millions of euros worth of debt by withholding parts of its losses from its financial report. The Montenegrin national carrier struck off debt owed to Airports of Montenegro, Jat Airways, the Serbia and Montenegro Air Traffic Services Agency, Lovćen Insurance Company and the Health Fund. The State Audit Institution concluded that a total of 2.085.000 euros worth of debt has been covered up. “Montenegro Airlines owes Jat Airways 41.000 euros. Its books do not include 112.000 euros owed to the Health Fund, while debt owed to Airports of Montenegro has been reduced by 464.000 euros in its financial report”, a publication by the State Audit Institution reads. Furthermore, the airline misrepresented debt owed to the Serbia and Montenegro Air Traffic Services Agency by 464.000 euros.

It has been found that, contrary to state law, the CEO of Montenegro Airlines, Zoran Djurišić, is also serving on the Board of Directors at the company. Djurišić singlehandedly decided to order an Embraer jet worth 26.5 million euros without consulting others, the scathing report notes. Earlier this year, EX-YU aviation news reported on the large scale conflict of interest and mismanagement at Montenegro Airlines, to which Mr. Djurišić responded that he does not care what a “rotten portal” writes about him.

In its findings, the Montenegro State Audit Institution concluded that the carrier has not signed a collective agreement with the worker’s union, owes half a million euros in unpaid wages to its employees for the year 2011 and owes a further 250.000 euros in taxes. In June, the Montenegrin government agreed to pump up to 36 million euros into its national carrier in order for it to carry out a restructuring program. It also ordered Podgorica and Tivat airports to write off millions in debt owed by Montenegro Airlines. The carrier, which keeps most of its business operations a closely guarded secret, was forced to suspend flights to Priština and Skopje due to unpaid fees last year. You can view Montenegro Airlines’ reaction to the report here.

35 comments:

  1. Change management completely and sell Fokkers asap!

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  2. I wonder who will die first, Montenegro Airlines or Adria.

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    1. Jat, in March! Because to make "new" Jat is just a way of manipulating bankruptcy, but it is bankruptcy in fact.

      On same patter Montenegro can:
      1. Open new company for example Montenegro Air
      2. Put slots, just Embraers, 50% of workers, offices etc. to that new company
      3. Sent Fokker to SKP and SJJ (same as Jat "plan" to do with 737-300)
      4. Leave debts to "old" Montenegro Airlines.

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    2. Jat won't really go bankrupt in that sense because the airline will be restarted. However if YM or JP go bust I seriously doubt they will be re-started.

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    3. YM and JP will never go bust.
      They are prestige toys..

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  3. Only on the balkans ..... Sell Sale tenders with a corrupted financial report and then say i dont care what a rotten portal or anyone else for that matter thinks....
    I seriously dont understand how politicians and politically elected directors, ceos etc give no shit for anything except them selfs wont ever understand the greed behind these people for there own back pocket, do they understand eventually there will be nothing left and they have to deal with what they have left.... Sorry may have gone overboard and offtopic but its just such a daily occurance not only for balkan aviation but all industries where people dont give 2 fucks...

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  4. We still have no numbers for the last month.
    Sometimes BEG delivers them in the first days of the folowing month but also often too late as now.
    That stinks about manipulation.
    I am convinced now they are faking their statistics.
    I really advise everyone to stay away from shares of Belgrade airport.
    I wonder how long it will take this time to invent their numbers for October.
    Their goal is double digit growth but it is actually not.

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    Replies
    1. It's a public holiday in Serbia so you are not going to get numbers today. You also don't have numbers for ZAG, LJU, PRN, SKP, TGD either. If they are going to manipulate their numbers they would make up the number on the first day of the month.

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    2. I think they are not faking it, if you have been following Serbian aviation closely then you would have known that Jat has been reporting exceptional growth this year. Also, numerous airlines have been reporting passenger growth to Belgrade. This year, especially during summer, A321s were very common.
      On top of everything flydubai will go almost double daily to Belgrade in winter.

      I doubt that all this doesn't ensure spectacular growth.

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  5. Thats why i love this blog and my old balkan roots.. things like this can only happen there :)

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    Replies
    1. well, I guess corruption and abject incompetence can be endearing if you're looking from afar

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    2. Well try googling Enron, Worldcom, Parmalat and you will educate yourself before posting trash.. The problem is that you're probably reading only about Balkan:-)))

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    3. I used the balkans as I can't understand wit so much nationalism and patriotism on the balkans wit general people these polies are no better then the rockefellars and rothschilds of the world. I can assure you when it comes to international political and corporate corruption I'd give you a lecture so good that you would expect to receive a masters in world corruption... Ps I'm not flying today I got all day if you want to continue wit my trash posts??

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  6. No my friends, allot of big company's in the world are trash 2, but they do there trash business on a smart way and so they end with a profit.

    In the balkans its always the same, corruption all the way and they only change the big boss, a new one comes and continues the corruption and so it goes.

    Balkan mentality is that you can better steel 1000e at once, even if everyone sees it, as long as you have it. A european 'big boss' would steel 250e each month, no one would see it and after 4 months he would have the same 1000e and would get away with it.


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  7. Today SAS(Scandinavian Airlines) got an economical crisispackage from 3 scandinavian goverments. 500 million euros have been invested so they wont face bankcrupcy. Just use JAT as an example need new fleet, Is it not possible to get the goverments help for new fleet? I think the costs of leasing new Airbuses will be to expencive. Possibility for an found from the goverment would be easy way out. Montenegro Airlines has never had an interesting routemap. You can compare them to B&H Airlines. Croatia have done it better but still they have alot to compensive from its economy. Why cant we try the Scandinavian warriant? Corporate= Adria+Croatia+Jat+B&H+Montenegro Airlines....= Balkan Airlines? Wish all of them best luck.

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  8. Better OU goes bancrupt than to form an airline together with the idiots from the south.
    Only my opinion

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  9. This comment has been removed by a blog administrator.

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    1. Whereas you stand for bigotry and primitivism.

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  10. LAX-ZAG starting from next summer.

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    Replies
    1. On Njemacki Konjusari airlines?

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    2. Here we go again..this time LAX, before were JFK and ORD. More details, am rather curious to know more.

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    3. New lines from Zagreb in 2013:
      Dublin, Tokyo, Los Angeles, Bahrain. Chicago and New York remain an option. More flights to be added to intra-European destinations: London, Brussels, Paris, Madrid, Frankfurt, Munich.
      Source: http://www.zagreb-airport.hr/

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    4. Why you use my nickname? And why do you write such stupid nonsense? Is this make your life easier when you write these stupid things?

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    5. Reason is simple.
      Guy is even afraid of LDZA potentials.
      In spite of putting all air traveling pax from Serbia to BEG and making it artificially big that airport still requires major improvements to reach quality of other airports in the region. DBV for example. After many incidents with power outages, sewage, yesterday's crash of local catering company truck to LH aircraft clearly illustrate urgent need for better management.

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    6. I think Purger has a dual (or multiple) identity problem, some of his personalities just interpret what would he like to be real, the diagnosis might be schizophrenia...

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  11. Hello ,
    excuse me for being offtopic but can anybody say how new routes from Skopje are performing?
    Flydubai and Wizz Air ..
    thanks in advance.

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    Replies
    1. I took the flight last week from Eindhoven, both directions was 90-95% full

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  12. I flew last week SKP-BSL-SKP! Both flights were almost full packed - on the SKP-BSL there were 168 Pax (93 percent LF) which is impressive for a third flight. The captain was a Serb and the FA' s were polish and bulgarian. Does somebody know when macedonian crews start flying?

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    Replies
    1. Start of December, once they've been cleared by the Hungarian CAA.

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  13. Purger hahhahaah if zagarb ever gets LAX i will walk naked in downtown zagrab.. hahaha that airport is a dumphole for a32O to park and head to mother germany.

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    1. ZAG has regular services to TLV on B767, DOH on A320/321, BCN, MAD and LIS on A320 and charters to Seoul Incheon on B777, all of which BEG doesn't have.

      Even long time ago, during ex-JAT and ex-Yugoslavia, almost ALL JU long-haul flights were operated NON-STOP to North America from ZAG, not BEG.

      ZAG was served by AirCanada and Malaysian which BEG NEVER saw.

      ZAG is in the country, which unlike Serbia has FAA IASA category 1.

      Furthermore, ZAG has serious plans for future, which include airport development, flag carrier restructuring, and new LC airline startup.

      Becoming full EU member within MONTHS, not years or decades like Serbia, calling it dumphole for A320, is simply primitive nationalistic envy, not based on facts.

      And maybie Purger, or somebody using his name missed the year, but starting 2014, ZAG will definitely have all-year-round long-haul services, both to North America and the Far East.

      Best regards to all non-nationalistic visitors!

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  14. Kamion napravio rupu u avionu Lufthanse na aerodromu Nikola Tesla (Blic 13 Studeni 2012).

    We, citizens of Gospic & Smiljan, believe that our fellow countryman Nikola Tesla deserves better airport to be named by his name.
    New LDZA terminal will be the one.

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  15. Yah yah nikola tesla is comming when zagrab.

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    1. I have written the above comment (10.21 AM) and have to admit that I definitely like your comment, since I am also fed up with "progress" of this specific project.
      Anyhow, NT will definitely come to LDZA, sooner or later, probably just in time when BEG turns out to be normal civilized airport.

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  16. This comment has been removed by a blog administrator.

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