Montenegro Airlines will add extra capacity by leasing an additional aircraft this summer with the capability of seating up to 140 passengers. Furthermore, the company has adopted a five-year business plan which outlines its future development and growth strategy. The carrier's CEO, Živko Banjević, noted, "During the 2018 summer season, Montenegro Airlines will be operating six aircraft. This includes five existing members of the fleet, of which there are three 116-seat Embraer E195s and two 109-seat Fokker 100s. In addition, a sixth plane will be leased under a suitable arrangement, which we are currently working out. This will bring the fleet's total capacity to 700 seats this summer".
Commenting on the carrier's future development, Mr Banjević said, "Plans concerning the fleet past 2018 are much more complex because we must replace the remaining Fokker aircraft. This has to be done in a way that meets the needs of the market, which is becoming more complex from year to year due to a range of different factors, making it difficult to forecast and plan". The CEO added, "As a result, the recently adopted five-year plan outlines two scenarios. One is for the remaining two F100s to be replaced with two E195s in the coming period, in addition to short-term aircraft leases over the summer. In that case, Montenegro Airlines' fleet would be made up of five E195s and one leased aircraft for summer operations. The second scenario calls for the replacement of the Fokkers with two Airbus A320 family aircraft or Boeing 737 family jets. Therefore, the fleet would comprise of three E195s and two A320 or B737 family planes".
The Montenegrin government will have a final say as to which fleet development strategy will be chosen. The airline notes that this will be a key decision for the company's future. The carrier's CEO added that in case the first option is selected, the airline would have to boost frequencies, while the second would result in a new product and fare structure since it would entail the introduction of larger capacity aircraft. "This would of course result in higher costs, but also higher revenue, whereby the company would safeguard its position on the market, carry more passengers and have the opportunity to introduce new and far-away markets, which is especially important for the Montenegrin tourism industry. Finally, it would also allow us to establish a more aggressive commercial policy towards our competition", Mr Banjević concluded.
wow great to finally see some clarity and smart thinking from Montenegro Airlines. They seem to be cleaning up their act and the fleet plans sound good.
ReplyDeleteWhether they have cleaned up their act will only be visible in the financial report.
DeleteI hope they choose the second option. It would be amazing to see a larger plane with the beautiful Montenegro Airlines livery :)
ReplyDeleteThe second option is definitely more risky because they will have a lot of capacity in winter. Now if they can develop a good strategy to employ those planes somewhere over winter then it could work out well.
DeleteThey could try and do what Adria does and enter ACMI market in winter.
DeleteThat's not easy to do winter when many airlines have access capacity. Ask Air Serbia which has not managed to lease out an A319.
DeleteExactly. Easier said then done.
DeleteSo they are leasing probably a narrow body Airbus or Boeing plane this summer. Any idea which one and who they will get it from?
ReplyDelete"A sixth plane will be leased under a suitable arrangement, which we are currently working out".
DeleteMaybe they lease Air Serbia's B737-300 - Aviolet? They did it few years ago but just for one day.
DeleteNo chance. Air Serbia this summer has 2 B737-300s in operation and they need both.
DeleteThey can lease one of the two retired B737s.
DeleteThey could lease A319 from AS, but that would make JU a bit stretched. Five planes seem appropriate for YM schedule we have seen, maybe they would just need AS or somebody else to step in if they have aircraft problem.
DeleteThe only, true legacy flag carrier in the area. I hope the others learn from their mistakes.
ReplyDeleteYes, not paying the lease so your aircraft get repossesed by lessor is really the way to go.
DeleteWell other carriers are shrinking and cutting routes and/or aircraft. This is not the case with YM.
DeleteWhich other carriers? Except for Air Serbia, I'm pretty sure all the other ones are growing.
DeleteExpanding while making lossess that government keeps covering with taxpayers money... I wouldn't count it as a success story.
DeleteNice to see some exciting news from MGX for a change.
ReplyDeleteLooking over their summer ops that were posted last week and these fleet plans now, their business seems to be improving. I don't want to speak to soon but the new CEO seems to know what he's doing.
ReplyDelete+1
DeleteAnd when will we know the financial results? Any indication how they performed in 2017? Have they managed to reduce losses?
ReplyDeleteThe CEO talks about far away markets. Anyone have any idea on which Montenegro Airlines could be successful?
ReplyDeleteINI
DeleteINI is not a far away market.
DeleteINI must be restored, however the competition will be very fierce with Ryan Airlines, W6 and Swiss
Delete@9.21
DeleteMiddle East, Caucuses, Central Asia.
In late 1990s MGX applied for a permit with FAA to fly seasonally from Tivat to New York. They planned to do it with a leased B767 from some Italian company. Didn't happen since new sanctions were slapped on Yugoslavia. I'm not saying they should fly to the US, I just find it interesting and not many people know about it :)
DeleteThey are starting charters to Iran and Jordan so that might be an area of interest.
Delete@anon 10:18
DeleteHad no idea about that! But it would be just 2-4 years after company started operations?
Does anybody know if Daliborka Pejović is considering returning to the company?
ReplyDeleteBight your tongue :D I hope not.
Delete** bite ;)
DeleteI still think she deserves a 2nd chance. We all make mistakes.
DeleteHahaha
DeletePrica opste gluposti. Vlada nema 200 miliona eura da baci za dva aviona, a lizing su im vec uzimali.
ReplyDeleteBanjevic speaking about market!? What a joke! Company that is alive only and exclusively on state aid has nothing to do with a market. Whatever scenario they choose-it is the same. State will fund and fund and fund, so MGX has nothing to bother about. As long as MGX is perceived as a national project, and as long as it serves as safe harbour for sons, daughters, friends, mistresses of rulig party's big shots, it simply doesn't matter what their plans are. They will always stay afloat...until regime change.
ReplyDelete100% agree. There really is no fear for MGX as long as the state i.e citizens pay for it and that will continue until the government is in power and that will probably continue for many more years.
DeleteOr until EU say stop.
DeleteAs tourism industry in Montenegro keeps growing, so will Montenegro Airlines.
ReplyDeleteNot necessarily. It has room to grow, but Government took a wise move to let LCCs in. MOntenegro has a chance for a time being with Serbia, Middle East, Russia, charters.
DeleteLook at tourism in Croatia and OU's share.
DeleteStick to one fleet type, either all Embraer or replace the entire fleet. 2 model fleets don't work in a small airline - there's increased maintenance, training and resourcing costs. Bad idea
ReplyDeleteBut if it's all Embraer they will still need to lease extra capacity in summer.
DeleteI agree on the all EMB-fleet idea for such a small airline.
Delete+1
DeleteI like Embraer 195 but it is not particularly pleasant when it is packed. Much worse in terms of experience than A320 family/B737 with full load. For 1h flight it is OK, but flying 4h from Tehran or over 3h from Russia not the best option.
DeleteAre you saying it's worse than being squeezed in the middles seat in 180 passengers a320 for 3 hours ? I highly doubt it.
DeleteI frequently travel between Toronto and Seattle and always prefer Air Canada E190 flights over A320. For a flight of 5 hours I find E190 much more pleasant and overall nicer and more comfortable. With which company do you have such a bad experience, Anon 11:32?
Delete@anon 2:05 Thank you for sharing Toronto - Seattle experience. I did not have a terrible experience with E195 as all my flight with it were under 2h. I personally like the plane very much but does not seem comfortable when it is packed. Window seat is less comfortable than in Airbus/Boing737 and especially if there is another big guy seated next to you. The thing I do not like about the plane is scarce overhead space (definitely not good for hand luggage only fares). Fortunately, I usually fly E195 with Air Dolomiti and their LF is normally 50% so most people get lots of space.
DeleteNice. Depending on which plane they lease this summer, might be an indication of which type they will get if they choose the second scenario.
ReplyDeleteHow on earth will they finance this?
ReplyDeleteGovernment.
DeleteThey seem to have a new air of life in them. Talking about fleet renewal, adding new routes this summer...
ReplyDeleteBravo Montenegro!
ReplyDeleteI don't think that Montenegro needs this symbol of statehood any more. Govt can find other ways to employ party/family members.
ReplyDeleteIt would be interesting to know how many passengers actually connect via TGD or TIV on YM. I don't think there are many.
In a sense, they are a p2p airline, which can be easily replaced by LCC in no time. Perhaps some incentives may be needed to ensure year round service.
Indeed, they were very important during state building period! Now all has changed and it is smart for Government to let all fly to Montenegro freely and bring visitors and connectivity.
DeleteWhy doesn´t JU buy YM and this way use their aircraft if they have a shortage?
ReplyDeletethey have fair enough problems already, no need to buy more troubled assets
DeleteBecause they can't afford to buy them.
DeleteIt could be a good move to buy YM if the company was previously cleared out of debt i.e. debt taken over by Montenegrin government. However, YM is already a single feeded of JU network with wide codeshare agreement so no real need for that. And finally, AS can not afford it as stated by previous commentators.
DeleteAt least they can compete amongst each other in the BEG-TGD route which is one of Europe´s most busiest regional routes.
ReplyDeleteNot really sure if it is really one of the busiest in Europe...in the Balkans yes, but on whole Europe level not that significant.
DeletePlease, for the people who have no idea about YM's struggle story and history to success do NOT say things if you are not sure.
ReplyDeleteYM deserves all the respect of the world and good luck with TGD.Excellent times for Crna Gora and bravo.