Montenegro Airlines plans for 2019 after record year


Montenegro Airlines is preparing for another busy year following a record 2018. The carrier handled almost 644.000 passengers since January on 7.536 flights operated by six aircraft. The airline added some 76.000 travellers on last year, or an increase of 13.3%. The average cabin load factor stood at a record 70%, up two points on 2017. The company's passenger share at Montenegro's two international airports - Podgorica and Tivat - stood at 27%, which is up 28% on last year. The airline registered revenue of some seventy million euros. "The financial result represents an improvement of two million euros on 2017, despite the rising price of fuel. The financial results are also some two and a half times better than last year", Montenegro Airlines' CEO, Živko Banjević, said.


The Montenegrin carrier has made some tentative changes to its 2019 summer season network. The airline will introduce new seasonal flights between Tivat and Hannover from May 2. The service will run twice per week with the 102-seat Fokker 100 aircraft. During the summer of 2018, Montenegro Airlines launched seasonal operations from Tivat to Munich, Leipzig and Copenhagen. However, services to the Danish capital are not scheduled to resume next year, while flights to both Munich and Leipzig will increase from two to three per week. On the other hand, the airline will boost operations from Podgorica to Copenhagen with an additional weekly service, for a total of three per week. Furthermore, the airline will shift airports in Moscow from Domodedovo to Sheremetyevo starting March 31. The carrier will maintain up to eighteen weekly flights between Tivat and the Russian capital next summer season.

Commenting on the carrier's potential privatisation, Mr Banjević told the "Cord" Magazine recently, "Our company is focused on the implementation of a phased optimisation of its operations, which is flexible, and does not exclude the possibility of finding a strategic partner and being privatised. Difficulties within the aviation sector have already begun and will continue throughout 2019 and beyond. The growth in demand for air travel, coupled with a lack of funds, a professional and licensed workforce, the need to develop and modernise ancillary infrastructure and the enormous increase in fuel prices will undoubtedly shake-up the airline industry. This will primarily have an impact on smaller airlines such as ours, so one of the options is to seek out a stable and reliable partner, which would become part of our ownership structure". So far, the owner of Adria Airways, 4K Invest, has been widely tipped as a potential investor. "The interest alone shows us that potential investors recognise the significant results the airline has achieved on its path to recovery and that the process is being carried out in the right way. Potential investors also recognise the airline's importance and the market's potential", Mr Benjević added.

On Friday, members of parliament proposed for the state to allocate 5.5 million euros for Montenegro Airlines in 2019 "if legal requirments are met". "The company's operations are charechterised by high seasonality. During the peak season, some 45 commercial, charter and low cost airlines fly to Montenegro, all of which are larger then us both financilly and operationally. The number is significantly lower during the winter, and those that do fly to Montenegro during this period do so mostly to feed their own global networks. This shows that winter operations are unprofitable. Montenegro Airlines' financial results during the summer are insufficient to cover losses incurred during the winter months", Mr Banjević explained. He added, "Revenue generated by charter traffic, codeshares and scheduled flights are capable of covering costs and producing additional earnings. However, this revenue cannot fully cover fixed and additional costs for every destination. One of the management's key challenges is to fully implement the business plan, increase revenue and optimise costs in order to minimise losses and reduce the negative impact of winter operations on an annual level".

Comments

  1. Nice to see some positive news for next summer.

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  2. Why the shift from from Domodedovo to Sheremetyevo? Which one is better?

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    Replies
    1. Adria and Air Serbia both fly to SVO, which is Aerflot's main base and both have codeshares with Aeroflot. What is odd is that MGX codeshares with S7 Airlines which does not fly to SVO. It's main base is DME.

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    2. I would assume then that the codeshare with S7 will be terminated?

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    3. Maybe they start codesharing with Aeroflot?

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    4. Yes, seems like the S7 codeshare is dead but no cs with SU yet.

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  3. A joke of a company, with all due respect.

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    1. Back your theory. It's very easy to sit behind the screen and critisise anonymously.
      The company has improved a lot and has no fleet issues, no destination issues, still offers full service, etc.
      Compare it to Jat, Croatian and Sloevenian wit many problems.

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    2. Heavily subsidized by the government of a poor country?

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    3. Anonymous at 09:16
      That is also true for every other ex-yu airline.
      So what makes YM so worthy of your hate?
      Is it the fact that it is the only one growing seriously?

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    4. Both JU and JP grew rapidly at some point like YM is today and we all know how that turned out to be.

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  4. Currently, Montenegro Airlines and Montenegro itself are facing one of the most remarkable perferomances in the entire ex-Yu.
    With TIV and TGD both booming, YM is apparently taking advantage.
    That said, they might as well return to INI and resume them daily flights via TGD. Also a chance for southern Serbs to visit the Montenegrin coast and transfer flights to Germany, Switzerland and Sweden.

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    1. That would be bad news for JU.

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    2. That would be bad news for BEG

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    3. I guess they're in panic at Vinci over the possibility INI- TGD flights be resumed...

      What are You on, folks??

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    4. Hahaha yes, JU and BEG are trembling at the thought of might YM and its massive hub at TGD taking away passengers from southern and central Serbia. Hahaha
      What would YM even offer? A seasonal two weekly flights to Hannover?

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    5. Please inform yourself before commenting here. YM has a considerable European network and offers year round connections to CDG, FRA, FCO, VIE etc. Southern and central Serbians make up a very large portion of JU s most successful route BEG-TGD. When INI-TGD launches they will lose a lot of pax and decrease frequencies as well and at the same time BEG s growth will decrease.

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    6. As far as I remember YM used to fly INI-TGD and it was YM that failed. Not the other way around.

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    7. TGD-INI was so successful that it carried 10 passengers per flight and that it only lasted as long as subventions kept on coming.
      As for YM's European network, it's a joke and besides BEG they don't have any daily flights on a yearround basis. So please, stabilize yourself.

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    8. The only reason MGX flew to INI is because the CEO then (that's the first CEO of MGX and founder) went to university in Nis and had some emotional connection to the city. Flights were empty.

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    9. the INI troll are early today when theres no school

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    10. What he was trying to say is that YM, similar to many airlines in the same area all have their regional hub ambitions therefore the transfer traffic competition is likely to grow.
      Of course, if YM ever decide to resume INI flights, this will be a headache not only for JU but to LX too. Don't forget that LX Mainland do fly to INI, too.
      Even if TGD has fewer destinations, the price of the ticket is going to be cheaper.

      The advantages of YM is that free catering is given and free bag too, which is not the case as JU.
      Additionally, the transfer via TGD will be almost stress-free.

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    11. Swiss offers connections to the entire world via Zurich. I'm sure they are shaking in their boots from Montenegro Airlines, an airline that does not fly to Nis or has any plans to fly to Nis.

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    12. Yes, YM would be a strong player in this market, especially since they have daily flights to Zurich with three different departure times out of Podgorica. Passengers to/from INI would definitely go for long connections at the wonderful TGD airport rather than to fly non-stop on LX or on one of the 38 weekly flights from BEG in summer.

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    13. Precisely anon 15:32.
      ANyone would prefer to transfer in a quieter and less crowded airport to avoid delays.
      ZRH Airport is really nice, but very expensive.
      BEG is okay too but JU started losing many lugagge similar to Alitalia because of the short connecting time.

      In a perfect world, it can be:

      INI-TGD-CDG - 155€ total time: 3h 55min
      INI-BEG-CDG - 169€ total time: 5h10min (no luggage included)
      INI-ZRH-CDG - 257€ total time: 6+ hours

      Clearly option 1 wins.

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    14. Yeah and you could fly to CDG via TGD once or twice a week. YM flies there six times a week in summer and they have five different departure times. People would always go for BEG or ZRH because of more option and flexibility.

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  5. It's really time for them to retire those F100s. They are almost 30 yrs. I think the A220 would be great replacement.

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    1. With what money?

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    2. Or Superjets!

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    3. They said they will be replaced either with more ERJs or next gen B737s.

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    4. @9.13 if 4K takes over, it's very likely some of those SSJs would go to MGX.

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    5. ERJs would make most sense.

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    6. I think the fokkers will stay at least for next year too and that they will again lease a B737 during high season.

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    7. Agree with last anon. Those fokkers probably have two more years in them.

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  6. Bravo Crna Gora!

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  7. For the long term future of Montenegro Airlines, it would be best if they find a Russian partner, given the political, economical and cultural ties between the countries. Otherwise, 4K will take it over, suck the money out of it and close it down.

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    1. Montenegro and Russia are not exactly in good relations.

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    2. @Anonymous 09:29

      What ties with Russia are you talking about?
      Montenegro is never going to get in bed with the Russians after the 2016 coup attempt.
      They instead joined NATO.

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  8. "This shows that winter operations are unprofitable. Montenegro Airlines' financial results during the summer are insufficient to cover losses incurred during the winter months"

    Same issue as with Croatia Airlines.

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    1. Seasonality is an issue with all ex-Yu airlines but naturally most prominent at OU and YM.

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  9. omiljen avion putnicima iz Podgorice je Fokker100 i avion Boeing737-300.

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    1. Ја бих додаo и B763.

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  10. Dead man walking.

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  11. Only 27% share is interesting compared to 50% JU in BEG and 60% JP in LJU.

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    1. And Wizz Air in SKP 80%.

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    2. What about OU?

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    3. lol, I wish it was 80% in SKP

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    4. What is it then?

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    5. JU at BEG is at around 42%.

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    6. @11.53

      OU is about the same in summer as MGX but in winter its 60%.

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  12. Cestitke vama,budite i dalje kvalitetni i u najboljem mogucem zdravlju.

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  13. Congratulations YM!!

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  14. Daliborka should return and bring more prosperity to MGX. Excellent speech!!

    https://www.facebook.com/mgxairlines/videos/1071944306193233/

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  15. Can someone tell me what 7 aircraft MGX had in 2014?

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  16. Still waiting to hear the actual financial results for 2018. Growth in revenue is good but doesen't tell us much about profit/loss.

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  17. Say what you may about Montenegro Airlines but it is currently the only true legacy airline left in ex-Yu.

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