Monday, October 31, 2016

Montenegro Airlines to return E190 to owner

NEWS FLASH


Montenegro Airlines will return one 112-seat Embraer E190 jet to its owner GE Capital Aviation Services. The aircraft, registered 4O-AOD, is just two years old and was delivered new to the Montenegrin carrier. In a statement, the airline said the move will generate three million euros in savings and optimise its fleet during the winter. However, Montenegro Airlines is believed to have had issues paying for the aircraft's financial lease. Over the past years, the Montenegrin government covered the leasing costs, however, since January, the airline has been obliged to do so alone. The current management has accused its predecessors of concluding an unfavourable agreement to purchase the jets. Following its return, Montenegro Airlines will have three E195 aircraft in its fleet, along with two Fokker 100 jets. The carrier told EX-YU Aviation News last week it plans to maintain operations this winter season with four aircraft. Some 80% of all flights will be covered by the Embraers. According to a May report, Montenegro Airlines owes 18.8 million euros for the financial lease of the Embraer aircraft to the Brazilian BNDES bank.

5 comments:

  1. Tick tock, tick tock....

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    Replies
    1. +1

      I wouldn't be surprised if they don't make it through the winter season.

      Delete
  2. YM has 3 E195, 1 E190 and 2 F100. So if they return 1 E190, then they cant have 2 E190, 1 E195 and 2 Fokkers !?

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  3. JU could have sub leased the jet and continue Kyiv and St Petersburg during the winter (or perhaps introduce some surprise new destination) ... seems like neither of the exYU airlines has a real clear strategy moving forward ....

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  4. What is more correct to say, is that you have no clear idea around how these work .... NO ONE leases in capacity over the winter when demand is significantly lower.

    I can't speak for YM, but it is obvious that JU is in cost reduction mode in a season where demand is signifciantly lower than what is in the summer. That's about as clear a strategy as one can have ...

    ReplyDelete

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