Monday, November 28, 2016

Montenegro Airlines ends E190 operations

NEWS FLASH


Montenegro Airlines has returned its only 112-seat Embraer E190 jet to its owner, GE Capital Aviation Services, today. The aircraft, registered 4O-AOD, is just two years old and was delivered new to the Montenegrin carrier. It departed Podgorica for Lisbon this morning. The airline says the move will generate three million euros in savings and optimise its fleet during the winter. Over the past years, the Montenegrin government covered the leasing costs for the jet, 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 aircraft. Montenegro Airlines now has three E195s in its fleet, along with two Fokker 100 jets. 40-AOD operated its last commercial flight on behalf of the Montenegrin carrier between Belgrade and Podgorica yesterday afternoon.

3 comments:

  1. montenegro is gift that keeps on giving, it was tough 2016 for them.

    - milo's bank took their headquaters in podgorica,
    - salaries are months late,
    - coo resigned over code share agreement with airserbia,
    - blocked accounts,
    - fokker AOG and lease of airserbia b737,
    - financial report showed 10+ mil€ loss in 2015 and 64 mil debt,
    - state aid blocked after european comision looked into their subsidies,

    it looks like a perfect company for etihad to invest in

    ReplyDelete
  2. Dare I say it again;

    tick tock, tick tick.

    ReplyDelete
  3. Solution might have been to return remaining Embraers, and keep only most profitable services with Fokkers it will keep the company afloat just enough to reduce it's debt and mitigate the mess for its employees and Montenegrin economy. Eventualy they'll sell slots and the remaining fleet and equipment. Air Serbia can take over from there. Montenegro Airlines would be a liability to any company bying it. Market value is limited with its seasonality that could be foxed by charter airlines bringing tourists to Montenegro. It would be much cheaper for both Montenegro and Air Serbia to open its bases in Montenegro - Podgorica and Tivat, maybe even Berane or establish a doughter feeder company as greenfield investment.

    ReplyDelete

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