Montenegro Airlines expects for its passenger numbers to decline this year as it consolidates its operations and optimises its network. The Montenegrin carrier said, "Plans for 2017 are based on the reduction of costs and the maximum utilisation of all available capacity, as well as business optimisation on all levels. As a result, and keeping in mind the state of the existing fleet, the company anticipates a decrease in the number of passengers, with an improved average cabin load factor. This summer season, instead of six, only five aircraft will be in operation", the airline said in a statement. Last year, the carrier returned its sole Embaer E190 jet to its owner, noting that the move resulted in savings of up to three million euros over the winter. The carrier says it could lease an additional aircraft during the peak summer months, if the need arises.
Montenegro Airlines saw only a 0.6% increase in its passenger numbers in 2016, when compared to the year before. The carrier handled 581.519 travellers. The growth was achieved despite a notable reduction in the number of operated flights, which stood at 8.607, down 8.7%. Although the airline's passenger figures improved 3% on scheduled services, the number of travellers on charter flights plummeted 35%. On flights to Belgrade, its most important market, Montenegro Airlines carried a total of 264.562 passengers, up 2% on 2015. It was followed by Moscow and Paris, which remain the strongest destinations for the carrier. It handled 80.952 passengers to Moscow, an increase of 3.5%, and 37.665 travellers on services to the French capital, the same as the year before.
The Montenegrin carrier is yet to publish its financial results for 2016. It is believed the airline improved its finances compared to the record losses in excess of ten million euros registered in 2015. So far this year, Montenegro Airlines has been beset by numerous challenges. It dealt with a silent protest by its co-pilots and underwent a change in management. Furthermore, the CEO of Montenegro Airlines, Živko Banjević, and a further seven people have been placed under investigation for concluding a damaging agreement with a consultancy firm in 2015, owned by Serbia's former Finance Minister, Mladjan Dinkić, for business and financial advice in talks with Etihad Airways. The airline has denied any wrongdoing.
Better maagment and an actual strategic plan and numbers will improve.
ReplyDelete+1
DeleteNumbers are still ok for such a small airline. Impressive figures on MNG-SRB flights.
ReplyDeleteDo you know maybe how much Air Serbia had on flights to/from Podgorica and Tuvat? Would be interesting to compare.
DeleteYes. Montenegro Airlines has led Air Serbia/Jat for many years now between these two markets. Wonder if something changed in 2016.
DeleteIt's much important who made more money then who had more passengers.
DeleteOh dear, what have you done Daliborka? The little princess made a terrible mess.
ReplyDeleteI don't think it's only Daliborka's fault. Problems started much before her.
Delete"concluding a damaging agreement with a consultancy firm in 2015, owned by Serbia's former Finance Minister, Mladjan Dinkić"
ReplyDeleteThis guy is indestructible.
Destroyed everything he touched.
DeleteI'd say he's more teflon coated than indestructable ... nothing sticks !
DeleteLast year they wetleased a B737 from JU. They might do the same tgmhis year too.
ReplyDeleteYeah and when they took it, it spent several hours on the ground until MGX payed for it.
DeleteThey were doing well under Djurišić.
DeleteThat was just the impression. He was the one that set the company up on the course it's on today. Should be noted that under his management financial results were falsified and he hired his entire family to work in the company.
DeleteIt does not help MGX that they are getting more and more competition. Not just from low cost airlines but full fare ones as well
ReplyDeleteIt also does nlt help that your market is very small.
DeleteIf Ryan keeps expanding it's going to become a problem for them.
DeleteRyan only pushed them out of London. They don't compete on any other routes.
DeleteDidn't they say their passenger numbers will go up with the new Air Serbia codeshare?
ReplyDeleteThat will take time and if you are reducing your operations significantly it can hardly cover the loss with a couple of extra passengers who will be using codeshare flights.
DeleteThey had 3.5% passenger growth during Q1-Q3 in 2016. So something happened in Q4 for them only to have 0,6% growth by the end of the year.
ReplyDeleteI think that deeper reductions to the schedule began during the winter season, which is why their passenger numbers probably went down during the last quarter.
DeleteI honestly hope their consolidation works out.
ReplyDeleteparty loyalists, corruption, cronyism and nepotism are words that best describe this airline.
ReplyDeleteVery true unfortunately.
DeleteWhat happened to the planned flights to Iran?
ReplyDeleteCancelled
Deletehttp://www.exyuaviation.com/2017/03/summer-2017-montenegro-airlines.html
Pity.
DeleteWill this airline ever be able to recover? Over the past few years there has been nothing but bad news from this airline.
ReplyDeleteWith Etihad out of the picture now (I assume they won't be acquiring any more bankrupt European airlines) I don't see who YM could be sold off to. They had all their eggs in the Etihad basket.
ReplyDeleteAn investment fund could be interested. Like it was in Adria.
DeleteWell the good thing is that Montenegro seems to be warming up to low cost airlines and issuing permits without a hassle so hopefully there will be more and more options.
ReplyDeleteMost of the main LCCs now fly to Montenegro but it is still very low frequencies when compared to Croatia.
DeleteSve nesto mislim da sa promenom vlasti u CG YM postaje deo Eurowingsa i Lufthanse i YM postaje charter kompanija sa regularnim letovima ka samo BEG i jos par destinacija. Ovakav potez bi imao odlican uticaj na turizam Crne Gore, to je po meni odlican potez drzave jer se na primeru Hrvatske vidi da sa te strane jedini gubitnik je CA a Hrvatska i njen turizam profitiraju. CG bi mogla da uradi nesto slicno jer im spas neki na duze staze nazalost ne vidim
ReplyDelete*Fanatik
The biggest hit on Montenegro Airlines' finances and the start of all of its problems began in 2006 when Montenegro declared independence from Serbia. Their best performing routes were from BEG. One of their biggest money makers was BEG-ZRH. When they became a foreign company and could not get fifth freedom it all started falling apart. Of course that's far from the only problem but it was a major turning point.
ReplyDeleteYup, they even created a separate brand called Master Airways. If I remember correctly they had daily flights in the evening.
DeleteThey carried roughly 5.000 passengers per month.
Yes but Swiss authroities were the one that banned these flights actually. They didn't want tk allow fifth freedom to MGX.
DeleteTrue. But there were other issues that lead to the demise of MA.
DeleteMalev already met its demise
DeleteChill it dawg, you know what I meant.
DeleteIt's an aviation site, you should know your codes, the basic ones at least.
DeleteI said chill dawg.
DeleteAre there any plans to retire those F100s? They are becoming quite old now.
ReplyDeleteHow old are they now?
DeleteSame as for the ASL's old ATRs - the F100 flies and there's no money for a replacement.
Delete26 yrs is the average.
DeleteYM - Give up
ReplyDelete+1000
DeleteWho would take over the Montenegrin market then? AS, OU, Wizz Air, or other LCCs?
DeleteI don't understand why the companies in our region underestimate such a huge market as the Romanian.
ReplyDeleteYour comment will probably be deleted because people prefer to talk about ex-YU only and not the regional airports nearby which is somehow understandable. Or you will be questioned by others why you are mentioning Romania and not, say, FYROM.
Deletebecause Romania is a country with over 20 mln. population and booming economy
DeleteWe in ex-yu are a tolerant people, don't worry my Romanian friend, you are welcome here.
DeleteOT: BEG - JFK today 209 economy, 5 business
ReplyDeleteWrong - it was 7 in business and 224 in economy
DeleteActually, you both could be right as one could be the booked status and the other the actual.
DeleteApril 15, 2017 at 6:18 PM
DeleteI left the gate before the end of boarding, probably arrived more passengers later.
Either way the flight is just about full, and that is a good thing.
DeleteAny more info you can share with us before take off? Thanks.
Many passengers are from Romania,Croatia, Greece, Hungary and Albania.
DeleteThanks man.
DeleteIt's interesting that one passenger from China flying PEK-AUH-BEG-JFK. Very long journey. Maybe he make a trip report?
DeleteThat is a very long trip. How you know this?
DeleteI was in control today near the transfer desk at BEG.
DeleteIf their were a lot of transfer pax it means they have uplifted a lot of low revenue pax. And only 7 business class pax? = another loss making flight for JU
DeleteI am certain that if they were flying daily 100% full you would have found a way to present it as a loss making flight.
DeleteIt's about time to end the duopoly on flights between Serbia and Montengro. Could Wizzair start flights? They already operate between Sofia and Varna with affordable fares....
ReplyDeleteNot possible as no EU carrier has these traffic rights
DeleteDoesn't Wizz Air fly to Russia from a non EU country?
DeleteLJU timetable shows that JP will soon be daily to TGD plus 3xMGX...so all together 10 weekly
ReplyDeleteWill YM return to INI one day?
ReplyDeleteMore likely to see AS than MA in NiŠ.
DeleteGot to have a crystal ball to make that conclusion. Malev is not flying for years now. Real insight
DeleteYeah right smarty pants, you know what I meant.
DeleteWould be nice to have those airlines lined up in Nish. Especially Alaska's new livery will brighten up Nis's terminal.
DeleteAlaska airlines wants to fly to papua new guinea and is fighting malev who will start it first? Whats that have to do with ex yu aviation?
ReplyDelete