Montenegro Airlines falsified financial reports

Audit exposes major cover-up at Montenegro Airlines

Consultancy firm MV Konsalt, which recently completed its audit of Montenegro Airlines’ 2013 financial report, has concluded that the carrier’s previous management, headed by Zoran Djurišić, falsified financial reports and recorded significantly reduced losses over the past several years. Montenegro Airlines ended 2013 with a 41 million euro loss. Once long term liabilities are added, such as loans for the purchase of aircraft, the carrier’s balance sheets were in the red by 68.980.608 euros last year. Mr. Djurišić, who was at the helm of the company for nineteen years, resigned on November 28, 2013 after he was dismissed as CEO in July that same year. According to MV Konsalt, the Montenegrin carrier falsified its reports for several years including 2013 when Mr. Djurišić presented the airline’s loss at twenty million euros. Earlier this year, Montenegro Airlines’ new management, headed by Daliborka Pejović, alarmed authorities of creative accounting which took place at the airline in the past.

Montenegro Airlines issued a brief statement saying it has handed over documents to the state prosecutor. “No further comments will be made on this issue”, the carrier said. In its report, the auditor found Montenegro Airlines owes more money than it is worth, urging the government to act in order to save the carrier. “The airline cannot cover its losses from its existing revenue. The company’s ability to continue operating depends on its efforts to restructure its liabilities and establish a satisfactory level of liquidity. The possibility of improving its financial performance is limited and almost entirely dependent on government support and restructuring”, the auditor said in its analysis.

The Montenegrin carrier falsified its financial reports for several years by showing conflicting and inaccurate figures, designed to improve its financial performance. Furthermore, the airline has not been consistent in calculating the value of its depreciating assets. “Depreciation is not calculated at the same rate. In addition, the residual value is presented for some assets while it is overlooked for others”, the report reads. Allegations of corruption and nepotism have been rife at the Montenegrin carrier for years. In 2012 a report by the Montenegrin State Audit Institution indicated the airline had covered up millions of euros worth of debt. The Institution found that Montenegro Airlines withheld losses in its financial reports and struck off debt owed to Airports of Montenegro, Jat Airways, the Serbia and Montenegro Air Traffic Services Agency, Lovćen Insurance Company and the State Health Fund. The State Audit Institution concluded that a total of 2.085.000 euros worth of debt had been covered up. The airline has also been under investigation for corruption after trying to set up an airline in Niš, in south-eastern Serbia, and attempting to lease a Fokker 100 jet to an Albanian airline. However, court proceedings have since been dropped without explanation.


  1. Anonymous09:45

    I really do not see how the government can keep this airline running. I wonder what impact the sanctions will have on their numbers to/from Russia.
    From what I heard they are doing quite badly on the Serbian market since, for the first time in a long time, Air Serbia managed to handle as many passengers as they did between. I do like their livery and the Embraer is a nice jet but this farce has lasted for too long.

    1. Anonymous10:03

      their livery is among the oldest in southeastern europe, and it has ugly deep blue colors that do not represent Montenegro in any way. However, much better solution for them is closure. I hope Air Serbia wont be duped into taking over Montenegro, even if they take only the healthy assets of it. If the statements in the article is correct, they made a loss of 117Eur/pax, probably the highest in the entire world, which means that the average ticket price covers roughly half of expenditures generated per a single boarding.

    2. Anonymous10:17

      Despite the sanctions their number to/from Russia are actually improving and i don't think they are doing badly on Belgrade route because i flew with YM few times i last month and a half and LF was more than 90%.

    3. Anonymous11:03

      I think he meant from a financial point of view. They no longer dominate on the market especially since Air Serbia sends its new birds down there.

    4. Anonymous12:02

      Even the most incompetent management in the universe could not impose such losses per pax. There is probably more into this whole mess - like money laundering, cash extraction etc. This is also why the government do not wish to shut it down.

    5. Anonymous12:12

      ^ I'm pretty sure the government itself is involved

    6. Anonymous12:17

      The livery of Montenegro Airlines is beautiful

    7. Anonymous19:56

      Sorry for Montenegro Airlines, hope they will get better!

  2. Anonymous10:51

    Haha good troll photo for this article :D

  3. Anonymous11:15

    Why do I think that pretty soon article like this will be published, but instead of montenegro subject of the article will be OU...

    I wonder who will take Embraer jets after they go bankrupt

    1. Anonymous11:27

      I think that they did do something creative to have positive results in 2013...

    2. Anonymous14:19

      It would be good if our posters from Croatia would comment on the highlights of this article. In particular about the annex clauses in the ZAG concession agreement. If they really do not pay anything to the government until 5M pax is reached then the taxpayers have been badly screwed. With such contract they can set all their goals somewhere between 3-4M and simply charge them as high as possible.

    3. Anonymous15:14

      "KONCEM prošle godine, srpski avioprijevoznik Air Serbia (dobri stari JAT koji se ukrasio novim logom s dvije tičurine)" - Hahahahaha :D

    4. Anonymous18:16

      @ 3:14
      Sto ste ljubomorni na bolju firmu od vase��;)

  4. Anonymous12:07

    Balkans in a nutshell

  5. Anonymous21:59

    You will not get a better example of how the national carrier best represents the state and DNA of a country than this one .... just awesome


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