Thursday, November 24, 2016

Discontent grows at Montenegro Airlines


Montenegro Airlines' pilots have threatened to go on strike as a result of unpaid wages, allowances and bonuses. According to the daily "Dan", industrial action will begin if the company fails to make payments for September and October wages, as well as allowances owed for the past three months. Similarly, co-pilots and cabin crew have not been paid in months. Montenegro Airlines' management is hopeful to settle the issue and avoid a possible strike through talks with pilot representatives. In a statement, the carrier said it has begun making payments on September wages this week. "Our company has been meeting all of its obligations without any state assistance this year, including the payment of salaries", it said. The airline is believed to owe some 200.000 euros in unpaid wages to its fifteen captains.

The latest development comes just six months after the airline's pilots initially threatened to walk off the job due to late wages. However, faced with the prospect of industrial action during the high season, the company's management scrambled to find the necessary finances to pay its employees. At the time, pilots expressed their dissatisfaction with the carrier's management as well as concern over their job security and the company's future. "This sort of treatment from the management towards its employees only deepens the animosity and mistrust", the Pilot's union said at the time. Last year, seven pilots left the company, unhappy with workplace conditions.

Montenegro Airlines recorded a 10.4 million euro net loss in 2015, making it the least profitable national carrier in the former Yugoslavia. The auditor of last year's financial report concluded that the company risks insolvency if it fails to restructure. "The company cannot settle its losses nor make payments for immediate expenses. Its capacity to continue operations relies primarily on its ability to restructure its obligations and establish a satisfactory level of liquidity", the auditor said in its report. It added, "The lack of circulating capital can reduce the volume of business on one hand and increase the risk of insolvency on the other. The options to improve the airline's financial position are limited and rely almost entirely on government support and its plans to restructure the business". Montenegro Airlines is believed to have narrowed its losses and improved revenues this year, however, its financial results won't be made public until later in 2017.

60 comments:

  1. Not surprised wages have been regularly late since 2011.

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  2. In normal circumstances pilots go on strike because they don't want pay cuts, or longer hours, or are demanding a pay increase. Not because their wages have been late several months!

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    1. What are you talking about? And why shouldn't they go on strike?? You're talking nonsense. This one is a more then valid reason.

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    2. Of course it is valid. I meant that in normal companies wages are not late by several months

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    3. In the civilized world the moment you can not pay your employees, you go into bankruptcy. It is that easy.
      I don't understand why European Commission tolerates this.

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    4. There are a lot of things the EC turns a blind eye to in Montenegro.

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  3. Sad su vidjeni za NATO pa moraju da kasne plate.

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  4. Feel sorry for the workers, (the ones who actually work, not the political & family appointees), who have to wait months to be paid. Wonder if Daliborka has to wait three months for her salary?

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    1. No, she gets paid in advance.

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    2. Don't feel sorry, it's their fault as well. Why would anyone go to job for months without salary? Vote with your feet.

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    3. True I don't think there has ever been a strike at MA.

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  5. So basically Air Serbia is doing a deal with Montenegro Airlines and giving them a lifeline to stay afloat. I honestly fail to see how Air Serbia will gain from its deal with MGX.

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    1. They were forced into it by Etihad which was forced into doing business by the Abu Dhabi government. Just like they were forced to do deals with Jat, Alitalia etc. Now they are paying the price for failed ventures across the world.

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    2. The Air Serbia codeshare will buy them another year.

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    3. It's not just codeshare with Air Serbia. They will also do cs with Air Berlin and Alitalia and this will help increase their passenger numbers and revenue

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    4. Again I don't see how any other airline from the Etihad family will benefit from this.

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  6. You only have to go on linkedin to see who is working at this company. Mostly 25-30 year olds who are already managers and directors. Unfortunetly the hard working pilots and crew are the ones who don't get paid.

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  7. Can someone tell me what is the average wage of Montenegro Airlines pilot?

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    1. Depends how much experience they have.

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  8. Speaking of Montenegro Airlines, they are apparently considering entering the IRANIAN MARKET!?!?! I don't get how, unless they will codeshare on future Air Serbia flights.

    Nacionalna avio kompanija Montenegro erlajns u ovom trenutku pokriva tržište Evrope i Rusije, a uskoro će pokrivati i tržiste Irana. O kakvom tržištu je riječ govori podatak da okvirno 9,1 milion medjunarodih putnika prodje kroz Iran (oni koji su doputovali /otputovali), koji su podijeljeni su u četiri kategorije, biznis, turisti, porodicna i religiozna putovanja. Prema procjenama, godišnje oko 600 hiljada Iranaca putuje za Evropu. O važnosti uspostavljanja saradnje sa Teheranom govorio je pomoćnik komerecijalnog direktora MA Dejan Pižurica.

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    1. Can the F100 or Embraer make it from Tivat to Tehran? These could be summer charters.

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    2. No neithet Fokker or Embraer can make that route without a stop.

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    3. Maybe they will lease some bigger planes next year...

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    4. With what money exactly? Don't count on it.

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    5. Maybe Air Serbia gives them one B737. Apparently they will retire two next year :D

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    6. Maybe they will just have codeshare with Air Serbia,same like for New York.

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    7. Most likely. Although Montenegro Airlines has some interesting regular charter routes during the summer including Baku and Yerevan.

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    8. I heard YM is brining an A380 to Podgorica for IKA service. There is nothing small when it comes to imagination in Montenegro :)

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    9. Embraer can fly to IKA without stop ;)

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    10. So maybe they will fly to Iran after all.

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  9. Za ka­pe­ta­ne sa mi­ni­mal­nim is­ku­stvom od pet go­di­na po­treb­no je 14,6 hi­lja­da eura isplata, a za ka­pe­ta­ne sa pre­ko 15 go­di­na is­ku­stva 16 hi­lja­da eura. Za tri dnev­ni­ce je po­treb­no oko tri i po hi­lja­de, za dvi­je pla­te pet hi­lja­da i za bo­nus do­go­vo­ren u ma­ju šest hi­lja­da

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  10. This year Montenegro Airlines has had its headquarters repossessed, it accounts blocked, has been forced to return 1 Embraer because it has no money to pay for it, has been constantly late on wages, has been named one of the most indebted companies in Montenegro... Yeah no surprise discontent is growing.

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    1. Corruption destroys all.

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    2. And still have their numbers improve..andhave more passengers from Montenegro to BEG than ASL.. i think this company can survive just if need to be cleaned from daughters and sons of politicians

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  11. When will it end?

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    1. To the many MGX haters on here in one word NEVER :)

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    2. Well something will have to give sooner or later. If you think the airline is not sick you are deluded.

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  12. If the pilots go on strike it will be the final nail in the coffin for this airline. Mark my words. That said I am sure the management will do anything for it not to happen because they are aware of the consequence.

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  13. Also should be mentioned that MGX has not paid social benefits for many employees for several years.

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    1. Has anyone sued the airline for this?

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    2. Yes many. And almost all won.

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  14. They have been risking insolvency for years yet they are still here.

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    1. Montenegro Airlines is pretty important for the country's tourism industry but with more and more competition, especially from low cost airlines so I don't think the government will let them go bankrupt.

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  15. So who is to blame for this? The old management which ran the show for 20 years, the current management or the government?

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  16. If Montenegro Airlines shuts down, will Air Serbia try to take over that market?

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    1. I think LCCs would be quicker.

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    2. What LCC operates a Concorde? Air Serbia A320 is just as quick as other guys A320.

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    3. He meant in terms of how fast they would expand there.

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  17. Unless the government writes off or takes care of all of the debt Montenegro Airlines won't be sold and there will be no deal with Etihad. That is looking more and more unlikely.

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    1. Of course they would settle down all the debts before selling it to Etihad, or even more likely, Air Serbia. Similar model as for JAT.

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  18. How this airline is still flying is beyond me.

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  19. Again, not a word from Daliborka :( what a shame

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  20. Crna Gora needs a decent carrier or a new national LCC like Macedonia to bring traffic and economic prosperity. The current model is very old-fashioned and not to mention the official website. Anyway, lets see what will happen between YM and JU.

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  21. Airline debt ewuals 4% of its country's GDP. Now imagine Lufthansa owing 130 billion usd or equivalent of five hundred A380s.

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