Montenegro Airlines’ fears in 2009

Steep financial decent in 2009?
Montenegro Airline will request funds from the government in 2009 if the global financial crisis takes its toll on the carrier. Cost cutting measures have already been implemented including pay decreases for all employed and the in-flight catering which has been simplified. A decrease in the number of bookings was felt by the Montenegrin national carrier in the last 2 months of 2008. The management will decide soon if they will need government subsidiaries to weather the crisis. During 2008 Montenegro Airlines served 500.000 passengers, a 17.2% increase compared to 2007. The carrier also ended 2008 with a profit of 55 million Euros. Montenegro Airlines CEO, Zoran Đurišić, said, “2008 will be remembered as one of the most difficult years in the aviation industry due to the high price of oil. Montenegro Airlines payed 17 million for oil instead of the planned 9 million”. This means that 42% of all expenditure went on the purchase of oil. The next Embraer aircraft for Montenegro Airlines will arrive in May while the third one should arrive in February or March 2010, depending on the global crisis.

There are also fears how Montenegro as a country will financially survive 2009 after the country’s government rejected all proposals by the International Monitory Fund (IMF) in formulating its 2009 budget. The IMF warns Montenegro could go bankrupt.