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JAT's inter-city bus service
Belgrade - Niš, 1980s

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Montenegro crisis continues

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Montenegro Airlines owes millions to home base
Milovan Djuričković, the CEO of “Airports of Montenegro”, the public company running both Podgorica and Tivat airports has revealed that the national carrier, Montenegro Airlines, owes over 4.5 million Euros to the airports for the year 2010 alone. “Montenegro Airlines is the biggest debtor to Airports of Montenegro and, unfortunately, as this year progresses, the situation is getting worse. I hope that the company, and those that run it, will have the strength to find a way out of their problems, which would, in turn, allow our company to carry out our business plans”, Djuričković told the “Dan” newspaper.

Montenegro Airlines was forced to suspend services to Priština and Skopje due to mounting debt last month. Furthermore, the airline owes 40.000 Euros to Vienna Airport and a further 60.000 to Frankfurt International Airport. Montenegro Airlines has also failed to pay its pilots since November, while the airline is in urgent need of 2 million Euros to continue operating, the “Dan” reports. The airline’s CEO has warned that the announced low cost seasonal services to Montenegro will have a further negative impact on the carrier and adds that the airline hasn’t received state subsidies for the past 4 years.

This summer, Montenegro Airlines cut frequencies to many of its key destinations, in particular Belgrade, compared to last year. However, the airline does plan to introduce flights to Brussels and Milan. Despite using more modern equipment, the airline has lost many of its passengers on the Montenegro – Belgrade services to rival Jat, while suspensions to Skopje and Priština have seen the airline loose a significant share of transit passengers.

March 23, 2011
montenegro montenegro airlines podgorica Results 2011 tivat
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Comments

  1. Anonymous16:52

    Sad to hear the news but welcome back to reality for MGX...

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  2. Anonymous17:11

    I am so glad for Montenegro Airlines that they will finally touch-down something which they deserve long time ago. Now they should order 5 more Embraer E-195LR and fly to Kingdom of Narnia....

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  3. Anonymous19:08

    Frankly I don't think that the montenegrin government will allow for that to happen, I guess they will have a bail out of some sort, but if this after all happens, what would happen to the airplanes?

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  4. Anonymous19:27

    At least we know where the money went...(hint hint > Embraers)

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  5. Anonymous23:28

    If they go bankrupt do they still have to pay all the money owed to the airports?

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  6. JU520 BEGLAX08:10

    most probably not as the government of Montenegro will refuse any claims since they will argue that YM being an independent company and so on...

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  7. AirKoryoTU-20423:47

    A bit off topic but, yesterday I flew into Athens (LGAV) and saw one of Montenegro's ERJ's parked out on a static ramp. I don't think they fly to Athens or Greece at all.

    I think it could be a charter? Does anyone have any more info?

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JAT's inter-city bus service
Belgrade - Niš, 1980s

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