Dozen operators eye Montenegro's airports


Over a dozen global airport operators are interested in the thirty-year concession of Podgorica and Tivat airports, Montenegro's Minister for Transport and Maritime Affairs, Osman Nurković, has said. The future concessionaire will be obligated to make a minimum one-off payment of 100 million euros to the Montenegrin government and will be required to invest at least 85 million euros into the two airports, which are being offered to investors as part of a single package. The yearly concession fee will total 10% of gross annual income. "We have drafted the concession agreement, which is to be adopted by the cabinet shortly, after which we will commence tender procedures. We anticipate strong interest from investors".

Turkey's TAV Holding, which operates nearby airports in Skopje, Ohrid and Zagreb has held talks with Mr Nurković over the upcoming concession. Others to have expressed interest include France's VINCI, Germany's Fraport, Dubai Airports Company and South Korea's Incheon International Airport Corporation. The government hopes to complete the concession process by June 2019. "Currently, some fifteen leading global companies are interested and will take part in the tender. We expect to receive excellent offers. This way we can make a great deal for the airports and the state. The concession is vital in order for Tivat Airport to follow through with its plans to build a new passenger terminal, extend its runway and overhaul its taxiways", the Minister noted.

Montenegro's Prime Minister, Dušan Marković, said the country's economy depends on the successful concession of the airports. "Look at what our runways look like today ... Our airports resemble refuelling stops. This is not a sale of state assets but rather a valorisation, which enables the state to obtain capital infrastructure with private money, which will result in significant economic benefits for the entire country", Mr Marković said. He added that under a private operator, the airports' annual earnings should grow from the current four million euros to ten million euros.

Comments

  1. Hmm it would be very interesting to see what would happen if for example VINCI got the airport and how this would, if at all, affect the relationship between BEG and TGD/TIV airports.

    ReplyDelete
    Replies
    1. Same regarding possible Fraport takeover (Ljubljana-Podgorica-Tivat) or TAV (Skopje-Ohrid-Zagreb-Podgorica-Tivat).

      Delete
  2. It seems its constantly the same companies bidding for airports in ex-Yu.

    ReplyDelete
    Replies
    1. I think it will be the first time Dubai Airports is interested.

      Delete
  3. Airports of Montenegro is one of the most profitable companies in Crna Gora. Why would you sell it?

    ReplyDelete
    Replies
    1. Because they need the money to cover losses of unprofitable state companies like Montenegro Airlines

      Delete
  4. Good. If TAV did something similar in Podgorica to what they did in Skopje, that would be amazing

    ReplyDelete
    Replies
    1. Making it a Wizz Air base?

      Delete
    2. Why not? I would be more than happy with that.

      Delete
    3. Wizz coming to Skopje has nothing to do with TAV. It was the government's doing.

      Delete
    4. Wizz already flies to Podgorica. Ryanair too.

      Delete
    5. And Laudamotion from next year too. TGD has a good combination of low costers and legacies.

      Delete
    6. Only easyjet is missing.

      Delete
    7. They fly to Tivat.

      Delete
  5. Nice to hear they want to expand Tivat but Podgorica needs to be expanded too. They are already hitting over a million passengers. It needs to expand. The terminal is small.

    ReplyDelete
    Replies
    1. I agree with you! They should think of expanding Podgorica. I was there last year, the airport is so small and they don't let you go through passport check into the departure lounge until an hour before your flight because there is nowhere to sit.

      Delete
    2. But why do you have to go through passport control in TGD when you only transfer through Podgorica?

      Delete
    3. They will build a temporary terminal there too.

      Delete
    4. @ anon 11.56

      i wasn't just transferring through Podgorica.

      Delete
    5. The terminal looks nice from the outside though.

      Delete
    6. I was just transferring through TGD and I had to go through passport control. I really wonder why

      Delete
  6. So another one bites the dust. Now we have under concession or privatization Zagreb, Ljubljana, Skopje, Pristina, Maribor, Portoroz, Ohrid and Belgrade.

    ReplyDelete
    Replies
    1. It is done throughout the world. It's not an ex-Yu phenomenon.

      Delete
    2. There are not a lot of airports left in ex-Yu for concession: Sarajevo, Dubrovnik and Split are the main ones.

      Delete
  7. I think these two airports have a lot of potential but Tivat can no longer grow without a new terminal. A real shame we won't see any construction there any time soon.

    ReplyDelete
    Replies
    1. Tivat is a mess during the summer. Expansion is long overdue.

      Delete
    2. Unfortunately, it is now unrealistic for them to start until 2020 and by the time they finish it will be 2022/2023. Best case scenario.

      Delete
  8. Fraport or Vinci would be great.

    ReplyDelete
  9. We already have French, Chinese, Turks and Germans running airports in ex-Yu. Let's see who comes next.

    ReplyDelete
    Replies
    1. Russians also in the past wanted to get concession of Montenegro airports.

      Delete
    2. After the coup plot situation from two years ago Montenegro will probably not allow Russians to even bid for the concession.

      Delete
  10. Would be interesting to compare how much did SKP+OHD fetch and how much TGD+TIV will get.

    ReplyDelete
    Replies
    1. Nothing. The concession was given for 20 years under terms for them to build a new terminal in Skopje and build an airport in Stip, which they haven't and won't do.

      Delete
  11. They should sell it to SHS Aviation, the guys that run Maribor Airport. They could turn the airport into a hub for Chinese passengers :D

    ReplyDelete
    Replies
    1. Bite your tongue

      Delete
    2. Dream team - an airport managed by SHS Aviation and national airline managed by 4K Invest.

      Delete
    3. Haha good one.

      Delete
    4. On a serious note there is bound to be interest from the Chinese.

      Delete
  12. State will have to find a solution for YM before it makes an airport transaction. YM owes millions to the airport and has no way to repay them. State owned airports don't care that much because they are all part of the same family but trust me a foreign operator will.

    ReplyDelete
    Replies
    1. They will simply write off the debt before the airports are sold. Problem solved. Welcome the the Balkans.

      Delete
  13. Good move. Hope they do the same with the airline.

    ReplyDelete
  14. Good news for Montenegro. These airports should definitely get a professional management.

    ReplyDelete
  15. Government wants to give airport cause they do not want to upgrade terminal building we all know that is not big investment cause profit from airport is so high that Montenegro can resolve the problem alone without considering concession...

    ReplyDelete
  16. Concessionaire might bring down fees. Podgorica and Tivat are quite expensive for LCCs.

    ReplyDelete
  17. Lufthansa starting Tivat, Fraport gets airports, 4k buys Montenegro Airlines :) connect the dots.

    ReplyDelete
    Replies
    1. Perfect conspiricy.

      Delete
    2. Most of employees wants Fraport or Seoul(South Koreans donated 1 M USD in 2007)

      Delete
  18. Like we previously mentioned, Europeans are exploring new coastal destinations. Everyone tried Croatia, Turkey, Greece, Spain, etc.
    I think Crna Gora is seeking to compete with the rest and trying to expose as a leading Balkan destination - especially Budva.
    It's time to revive Berane Airport (IVG) and bring more tourists to the country.
    IVG can also serve the Novi Pazar, eastern Kosovo & northern Albania too.

    ReplyDelete
    Replies
    1. "...and trying to expose as a leading Balkan destination..."

      Huh?!

      Delete
    2. There was mention at the beginning that concessionaire would be required to develop Berane but I'm not sure if it is still part of the deal since they are no longer mentioning it.

      Delete
  19. Do we actually know Airport Montenegro finances. Revenue? Profits?

    ReplyDelete
    Replies
    1. Gross profit of 6 million euros in 2017.

      Delete
    2. It would have been bigger if Montenegro Airlines paid for using the airport.

      Delete
  20. I think this would be a good opportunity for TAV to expand its portfolio in the Balkans.

    ReplyDelete
    Replies
    1. Or for VINCI, or Franport, or Aeroports de Paris ;)

      Delete
  21. Hope the country gets a good price for the two.

    ReplyDelete
    Replies
    1. 100 million straight up + 85 million euro investment as they are suggesting is quite good.

      Delete
  22. Will there be anything left in ex-Yu that hasn't been sold :(

    ReplyDelete
    Replies
    1. They are not selling the airports - it's a concession.

      Delete
  23. Obnova aerodroma u Beranu jeste dobro za turiste i stanovnike severa Crne Gore. Ipak predstoji obnova aerodroma kod Sjenice.Koji ce sluziti Raskoj oblasti. Severu Crne Gore, Metohije i severne Albanije. Tim predelima sa nepristupacnim prilazima aerodrom jeste neophodan za dosupnost svetuq. I turista buducih vremena.

    ReplyDelete

Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.