Asian operators eye Montenegro's airports


Operators from Asia have expressed the greatest interest in the upcoming concession of Montenegro's two airports - Podgorica and Tivat. Companies from India, South Korea, the United Arab Emirates and Turkey are expected to bid for the concession, although interest has also been shown from Germany and Finland. The Montenegrin government is expected to adopt a concession act in the coming weeks, paving the way for the process to begin. "There is significant interest for our two airports. We are in a position to select a quality operator, a company or consortium that will develop both airports in line with demands of the tourism sector and the public", Montenegro's Minister for Transportation and Maritime Affairs, Osman Nurković, said.

The two airports will be offered for a concession ranging between 25 and thirty years. 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 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.

Asian operators have previously shown interest in other airports in the former Yugoslavia as well. Incheon International Airport Corporation from South Korea submitted bids for both Zagreb and Belgrade airports, while India's GMR Infrastructure Limited was among the top five bidders at Nikola Tesla Airport. It is also expected for Dubai Airports Company to submit a bid for Podgorica and Tivat. Porto Montenegro, a luxury yacht marina complex near Tivat Airport is owned by the state-run Investment Corporation of Dubai, which also owns a number of companies in the transportation sector, including Dubai Airport, Emirates and Flydubai. On the other hand, Turkey's TAV Airports Holding, which has become a global brand in airport construction projects and operations, has already held talks with Mr Nurković on several occasion concerning the concession.




Comments

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

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

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    2. They would be a good option.

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    3. Do they manage any other airports outside of Dubai?

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

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

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    2. The only state-owned company that is profitable, but nevertheless, it needs to be privatized

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

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    1. Making it a Wizz Air base?

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

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

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    4. Wizz already flies to Podgorica. Ryanair too.

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    5. And Laudamotion too. TGD has a good combination of low costers and legacies.

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    6. Only easyjet is missing.

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    7. They fly to Tivat.

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  4. Looks as if TGD and TIV will be handed over to the Turks.

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    1. What makes you think that?

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    2. Nurkovic is lobbying for them.

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  5. Maybe they get Podgorica and Tivat and are obliged to complete the Berane Airport project too. If I am not mistaken TAV has to build a cargo airport in Stip in Macedonia under the concession agreement.

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    Replies
    1. Stip cargo airport project is cancelled.

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  6. They do realize that when they sell the airport the new owners won't turn a blind eye towards MGX?

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    Replies
    1. That's why the concession has been delayed.

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

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    1. Maribor's concession will end in July. It was a big success story.

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

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    3. They are not selling the airports - it's a concession.

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  8. Podgorica needs to expand. The terminal is small.

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    1. Didn't they build a makeshift terminal last year?

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    2. Yes they put up a shed more like it.

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    3. I think it looks quite nice

      https://www.exyuaviation.com/2018/12/tivat-airport-opens-new-terminal.html

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    4. Podgorica needs to be expanded too. They are hitting over a million passengers. It needs to expand. The terminal is small.

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    5. They already made some expansion plans
      https://www.exyuaviation.com/2019/04/podgorica-airport-plans-terminal.html

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  9. 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.

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    1. Well they did build the makeshift terminal.

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  10. Sarajevo, Dubrovnik and Split will be the only bigger airports left without a concession.

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    1. Dubrovnik and Split don't need a concessionaire. Sarajevo on the other hand...

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  11. Hope the country gets a good price for the two.

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

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

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  13. Do we actually know Airport Montenegro finances. Revenue? Profits?

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    1. They had 10 million euro profit in 2018 before tax.

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

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

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    1. Usually the opposite happens.

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  15. We already have French and Turks and Germans running airports in ex-Yu. Someone from Far East Asia would be nice.

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

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    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.

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    2. wow interesting

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  17. Fraport or Vinci would be great.

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    1. With them already operating BEG and LJU I doubt they will take Montenegro's airports.

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    2. So? TAV also manages Skopje, Ohrid and partly Zagreb and they are very interested in TGD and TIV.

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  18. 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.

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

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    2. * write off

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

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    1. I think this management has been doing quite well. Lots of new airlines and passenger numbers growing.

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    2. It's still a politically appointed management based on party lines who are not directly relted to aviation at all.

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  20. I definitely see Scoot and Air Asia operating flights to Crna Gora.
    Air Asia is returning to Europe soon with the new A330 neo.

    We could see routes from KUL or BKK to TGD or TIV.

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    1. Yes and eventually Scoot will be replaced by Singapore Airlines that will send an A380 to Tivat.

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    2. Yes of course SQ it will be for sure but I think it will be the newest A350-900ULR in all business configuration, something like they use for EWR. LOL

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    3. Singapur are actually passively looking into Montenegro. This has been the case since septembre 2017.
      Traffic from Oceania and Japan is growing and more tourists are pojected to visit ME especially Budva.lets see how it goes.

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    4. I don't think direct flights from East Asia to either TGD or TIV are likely... at all

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  21. Based on info from MNE, Changi is also interested. Incheon Airport most likely.TAV,hm..so-so chances, but all privatization projects in MNE by Turks are completely disaster (Port of Adria-Bar, Toscelik....etc)

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