Sunday, August 16, 2015

Montenegro Airlines posts hefty losses

Montenegro Airlines plans for “smart” winter in a bid to cut costs

Montenegro Airlines has recorded a net loss of 6.5 million euros during the first half of the year but says it has taken measures to improve its fiscal performance and reduce its debts. Its net loss for the whole of last year amounted to 9.5 million euros, making it the least profitable national carrier in the former Yugoslavia. The airline’s debt currently stands at 74 million euros, which is down from the 82 million the current management inherited from its predecessors in mid-2013, CEO Daliborka Pejović says. She notes that there is no fear of bankruptcy. The airline has settled its debt to Pristina Airport, to which it suspend flights in 2011 due to unpaid handling and landing fees. Furthermore, the carrier has made an arrangement with its owner, the Montenegrin government, to reprogram its debt to the operator of the country’s two international airports - Podgorica and Tivat - amounting to 6.4 million euros. The debt repayments will start on March 1, 2017 and will be made in instalments over 108 months. Last year it was found that Montenegro Airlines had falsified financial reports and recorded smaller losses for several years leading up to the summer of 2013. Ms Pejović says some sixteen million euros in losses were covered up by the previous management.

Montenegro Airlines’ CEO explains that the company has come up with two measures to “fight the fires” - leasing out its aircraft during the slower winter months and reprogramming its loans for which the government has provided bank guarantees. “It is in our interest to put the aircraft we have to better use during the winter season, when we can lease them at a good price on some other markets”, Ms Pejović says. The carrier currently has six jets in service. “These measures are already in their final stage of implementation and will need the approval of the government and some good business practice”, the CEO notes. She adds that the number of employees has been reduced from 454 to 398 since July 2013 and announced that a further 23 workers will be sacked at the end of the summer season.

Previously, the airline planned to launch flights to Zagreb this winter and was considering introducing services to Skopje as well. However, in light of its financial situation, these are now questionable. Furthermore, the airline’s strategic partnership with Etihad Airways, announced back in February by Ms Pejović for this summer, is looking increasingly unlikely. Montenegro Airlines has seen an upsurge in passenger numbers during the first seven months of the year, with a strong start to August as well. During the January - July period, the Montenegrin carrier welcomed 320.000 passengers on board its aircraft, an increase of 4% compared to 2014.

62 comments:

  1. "The airline’s debt currently stands at 74 million euros"

    Dear god. They have 6 planes and they manage to make such a huge loss. Has anyone gone to jail from the last management for falsifying reports?!!?

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  2. Morala bi cela Vlada onda u zatvor! Haha

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    1. YEP, the fish smells badly from its head, we at Balkans would say!

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  3. They were making average 50k loss daily in the first half of the year. How they think they're not going to bancrupt I don't know...

    They owe 6.5 milions to Tivat and Podgorica. What about other 68 milion? Who do they owe them to?

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    1. @Marko
      How did you calculate the 50k € loss per day?

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    2. 35k I'm sorry.

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    3. They owe to Airports of Montenegro, Jat Airways, SMATSA, Lovćen Insurance Company and the State Health Fund

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  4. Their debt equals 2% of Montenegro GDP and 5.57% of the country's budget for 2015. If it was Air Serbia, it would be 1 billion Eur, Croatia Airlines would be 1.4 billion, Lufthansa 80 billion etc.

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    1. Fantastično... i to sa tolikom flotom?!

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    2. I think you mean if it was Croatia it would be 1 billion € and 1,4 billion € if it was Serbia.

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    3. Croatia's GDP is larger than Serbia's.

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    4. Ever getting tired of trying to show us how smart you are?

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    5. Croatia's GDP is bigger than Serbia's despite Croatia having much smaller population.

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    6. Italy has a higher GDP than Russia with a much smaller population, but does it makes it more important and influential on the international stage, definitely not.

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    7. So is bigger than Lebanon's yet we all know Croatia is totally unimportant country compared to the later one. GDP means not much about actual importance and level of development of a country. You should rather take the GDP to actual debt ration where Croatia would fare much less favourably not only to Serbia but to a wide array of underdeveloped countries.

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    8. Serbian public debt is around 23 bilion while croatian is well above 30 bilion. So please be objective

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  5. OT: Anyone in BEG today to photo shoot QR A330 that's flying today? Will be using gate area C3-C4 today.

    http://www.beg.aero/en/strana/13181/%D0%94%D0%B5%D1%82%D0%B0%D1%99%D0%B8-%D0%BB%D0%B5%D1%82%D0%B0?flightId=319

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    1. Will they be using the actual gate (jet-bridges) or people will be bussed?

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    2. Arrived at 13:31... lots of people pulled over to watch it land... parked at the gate, used airbridges, took off moments ago over Sava.... such a nice bird...

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    3. Here we go, video of the landing... https://vid.me/Wsaj

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    4. Yes Qatar livery on A330 looks very nice. Hopefully this won't be just once in 100 years occasion.

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    5. Дечко ТзарAugust 16, 2015 at 4:24 PM

      Opportunity for BEG to check A332 operations at C gates, turnaround time etc. This will happen daily when Etihad starts sending A332 to BEG and JU starts using EY A332 wet lease to JFK. If that happens on a first day of S16 (27 March 2016), we will have exactly 224 days until then. Let the countdown begin!

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    6. Knowing serbian government it would be a miracle if they started flights until 2017. But considering that Air Serbia is considered Vučkos personal project we can expect flights even before March 2016

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    7. Turnaround time seems to have been good enough, just under one hour, took off on-time. Of course it'd be a different story when it's about 300 pax but this was successful handling and first time they actually didn't send the A330 to B-stands. Will be great to see pics of it attached to it.

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    8. EY nece slati 332 za Beograd, to sam licno ja izmislio i postovao ovde, da bih video reakcije strucnjaka koji su odmah kao znali to... Zao mi je od toga za sada nema nista...

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    9. ...u ovoj priči je bitno da će Air Serbia na početku koristiti Etihad A330-200 za wet lease letove BEG-JFK.

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    10. Strucnjace, ne postoje wet lease letovi, postoje avioni uzeti/dati na (wet/dry/acmi/sub) lease. A da bi avion A330-200 od Etihada bio uzet u Air Serbiju na lease, on treba imati trziste. To trziste trebale bi biti SAD, prvenstveno zbog dijaspore, pa i tranzita, i o tome pricaju Vucko, Zoka i ostala ekipa. E sad, jedini je mali problemcic sto vlasti SAD-a za sada nisu, a verovatno i nece, dati dozvole Air Serbiji ni za code-share na Air Berlinu, a kamoli za samostalne letove, da o slotovima na JFK-u koji se uklapaju u "talase" JU u BEG ne pricamo, pa ces i ti, kao i INN-NS morati da se sa JU A330-200 na JFK zadovoljis u svoljim vlaznim snovima

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    11. Stručnjaci su ovde pisali da Air Serbija neće ni početi da leti, da Airbus avioni neće ni doći, da FAA neće dati Cat I, da Amerika neće potpisati bilateralni sporazum, a sada pišu da DoT neće dati dozvolu. Toliko o stručnjacima. Kad sam napisao da je vaš problem u stavu, admin je promptno cenzurisao takav odgovor. Valjda je sad lakše da se razume poruka: nema vam vajde od mržnje prema Air Serbiji, kompanija raste i prevlađuje prepreke bez obzira na vaše negativnosti. Lakše će vam biti kad promenite stav i prihvatite da će odobrenja i letova biti.

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    12. Pa koliki zaista not expert (ili bot) moras biti da unapred tvrdis da znas odluke drzavnih organa najjace svetske sile. I sta mislis da si dokazao svojim postom? Po meni, sledece : Er Srbija leti, o trosku srpske sirotinje za jeftine pare prevozi strance, i sve to temeljem netransparentnog, u celini ne objavljenog i vrlo sumnjivog ugovora koji strancima pruza efektivnu kontrolu nad kompanijom. Erbas avioni su dosli, stari otprilike kao i Boinzi, hajde neku godinu mladji, a njihov liz se preskupo placa, za razliku od Boinga koji su otisli a bili u sasvim solidnom stanju i u vlasnistvu, dakle bez troskova liza. Cat II ima svega nekoliko zemalja na svetu, pa je tako cat I dobila i Srbija, Bilateralni sporazum ne znaci nista jer ga ima sva sila zemalja koja ima taj sporazum a nema letove za SAD, a cinjenica da ne mozes razlikovati mrznju (btw. uzasno teska rec), od objektivne procene situacije, ili konstruktivne kritike, govori puno vise o tebi nego o meni i pokazuje da zaista imas dobar i odgovarajuci nick

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    13. U pravu si u mnogim stvarima ali ne u svemu. Tvoj komentar mi stilski jako liči na poruke koje acabgd Alex Krstanović piše po internetu. Aco jesi to ti?

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    14. Jok burazeru, nisam Aca, zao mi je, i ne znam sta Aca pise po internetu ali m je drago da ima jos ljudi koji slicno misle kao ja.

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    15. Kompjuter uporedio tekstove i kaže da jesi.

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    16. Hahhahahahaha onda sam jedan od retkih koji mogu da zajebu kompjuter. I bas bih voleo da upoznam tog Acu koji je toliko isti ja

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  6. With such debt for their size they make Cyprus Airways, Olympic Airways, Air Berlin and state owned Alitalia look good!

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  7. OT: Flew from SPU to BEG last Friday with OU. My girl flew same route but with JU. Both planes +90%. Full of ex-yu people...
    JU should consider SPU in winter 2-3pw and take some pax ZAG...
    Also, flew BEG-CDG this morning, excellent service, A320 almost full...

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    1. Fantastic. I hope they fly in winter. Especially easter time.

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  8. possible wet lease 2 e190/5 to asl during winter. besides moderate downsizing operations during winter season asl desperately need new machines. if they retire all 4 b733 + 3 atr 72-200 and with unknown future of the minimum 2 of their 8 a319 it is obvious we will see new planes in asl very soon.

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    1. Nobody was talking about ATR -200 retirement? Strategy is to decrease number of operations and increase number of passingers by improving sales and LF

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    2. da ali njihov zivotni vek je pri samom kraju

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  9. Previse je kompanija u regionu krecu da pucaju neke vec sad kao sto sam rekao prosle godine to je prava steta i zao mi je YM sto ima slabu mapu destinacija.
    INN-NS

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    1. ADR je u najtezoj poziciji, a i pred ASL je tezak period, mozda i presudan za uspeh celog projekta.

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    2. Mozda ti da im pomognes kao menadzer kad se skolujes?

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    3. treba to jos puno skole..

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  10. BEG today:

    https://scontent-vie1-1.xx.fbcdn.net/hphotos-xtf1/t31.0-8/11845124_10207066054070275_4037086638119707016_o.jpg

    I believe the picture was taken by Slobodan Vucetic.

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    1. Personally, I am happy Etihad got a new livery, their old one was so ghetto, especially when pictured next to such beautiful liveries.

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    2. I really liked the old livery. Quite unique :)

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    3. Fun photo, EY holding for departure while QR heavy is almost above RWY 12 piano keys. Rush hour lineup at BEG with EY, SU and JU. Dozen more planes in a queue and it will be like JFK on busy afternoon!

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    4. By the way, QR arrived with 113 passengers and departed with 100+.

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    5. Odlicna fotka, svaka cast.

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  11. What YM needs is just a single but efficient prop machine, a 70 seater would do the job - to be used year round. They underserve the region and should offer double daily flights to other ex yu capitals on selected working days as to attract business travel customers for higher yields - all just with a single efficient prop, e.g. like this:
    1+4) TGDZAGTGD 6:10-7:15 7:50-8:55 TGDSKPTGD 9:30-10:10 10:45-11:25 and TGDZAGTGD 16:10-17:15 17:50-18:55 TGDSKPTGD 19:30-20:10 20:45-21:25
    2+5) TGDLJUTGD 6:00-7:15 7:50-9:05 TGDPRNTGD 9:40-10:15 10:50-11:25 and TGDLJUTGD 16:00-17:15 17:50-19:05 TGDPRNTGD 19:40-20:15 20:50-21:25
    6) TGDZAGTGD 6:10-7:15 7:50-8:55 TGDSKPTGD 9:30-10:10 10:45-11:25
    7) TGDLJUTGD 16:00-17:15 17:50-19:05 TGDPRNTGD 19:40-20:15 20:50-21:25
    In between on Saturday late morning till Sunday afternoon, on Wednesdays and even in early afternoons on 1,2,4,5 days they can use that bird to replace some flights to FCO, BEG, VIE operated by the 110-seaters or even add frequencies on those short haul routes. According to the LFs a 70-seater would mostly be sufficient to accommodate all pax. Additionally, an ATR72-6 or Q8-400NG are much more efficient than their F100 and E190/95 and do not need more than 5-10mins extra per flight leg. One must fear flying half empty 110-seaters for 9 out of 12 months a year will make them become bankrupt at some point.

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    1. realno bankrot je prva opcija jer ovaj dug je nemoguce kompenzovati. eventualno nova kompanija moze razmisljati o floti, destinacijama, redu letenja itd

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  12. I agree, regional turboprop is needed. But I doubt they can could get away with a single one. They need two at least.

    I have been saying this as well for ASL. They have to upgrade their regional fleet in order to maintain their competitiveness. Fleet of new ATR72-600 or Q400s to replace all of current ATRs. Q400 would work quite well on medium routes that could replace Airbus without too much of a time penalty. On the short hops (TIV, TGD, SPU, DBV, SKP) drive it in low speed cruise at FL250 and you are a winner! Of course, we can argue that ATR would be slightly cheaper to run on those routes, but ATR could not replace Airbus on longer flight (WAW, MUC, ATH, MXP) when the loads are thin.

    Just my 2 cents ;)

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    1. Trebao bi doci jos jedan ATR u ASL i prica se da bi trebali svi regionalni ciljevi da se pojacaju i na kraju vmce biti 6 Atr.
      INN-NS

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    2. Znam, ali po meni treba zameniti stare -200, za nešto novije. To su avioni još iz 1994, po meni to je prestaro.

      Ili -600 ili kompletna izmena turbo prop flote

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    3. treba srediti regionalnu flotu posto od interkontinentalnih letova u skorije vreme ipak nece biti nista

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    4. Hoce biti u skorije vreme.
      INN-NS

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    5. Treba siriti evro destinacije, posto od USA sve su prilike nece nista biti ni sa Air Berlinom jer Ameri nisu bas voljni da daju dozvole, pogledajte A3 sta je napravio, na njih treba JU da se ugleda...

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  13. OT: Today 4x flights from Ohrid to Zurich and 3 others with 7 flights total (Rare view at Ohrid)

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  14. Montenegro Airlines should have set TIVBNX charter flights in July and August since BH Airlines got bankruptcy. Last year, there averagely were more than 40 PAX per flight. This year it would have increased to at least 60 per flight if YM had flown on that route.

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