Montenegro Airlines CEO under investigation

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The CEO of Montenegro Airlines, Živko Banjević, and a further seven people are under investigation for concluding a damaging agreement with a consultancy firm in 2015. MD Solution from Belgrade provided business and financial advice to the Montenegrin carrier over talks with Etihad Airways, which resulted in the signing of a codeshare agreement between the two airlines. The debt-ridden carrier paid 25.000 euros per month to MD Solution for its services. In total, Montenegro Airlines forked out 200.000 euros to the consultancy firm. MD Solution failed to meet several set deadlines. During 2015, Montenegro Airlines recorded a net loss of over ten million euros, making it the least profitable national carrier in the former Yugoslavia. Mr Banjević was employed at Montenegro Airlines between 2003 and 2015 before leaving the company. Last month he made a comeback and was named as the airline's new CEO.

Montenegro Airlines has since reacted to the accusations noting that the agreement with MD Solution was signed within the limits of the law and was approved by the Board of Directors. Furthermore, the company noted that the consultancy firm was paid based on the agreement the two sides reached. "This agreement and its realisation is normal company practice and does not deserve such media attention", Montenegro Airlines said in a statement.

Živko Banjević