Montenegro Airlines prepares for service resumption

Montenegro Airlines is gearing up to resume commercial flights in June after almost three months. Montenegro’s two international airports recently reopened for general aviation flights and are expected to welcome commercial services in early June. The Montenegrin carrier has tentatively scheduled its operations between June 1 - 15, with the carrier to maintain fifteen weekly rotations between Podgorica and Belgrade, and a further thirteen weekly between Tivat and the Serbian capital. The remainder of its network is expected to be progressively reinstated from mid-June onwards. “We plan to operate four aircraft this summer season, which means fewer passengers and flights than last year when we had six jets. However, the circumstances are such that it would be too big of a risk to wet-lease one or two aircraft”, the President of the carrier’s Board of Directors, Nikola Vukićević, said.

The Montenegrin carrier estimates its losses will amount to several million euros as a result of the coronavirus Covid-19 pandemic. “During the first four months of the year, revenue declined from twelve million to six million euros, although variable costs were also significantly lower. We carried some 70.000 passengers on 980 flights compared to 130.000 travellers on 1.800 flights during the same period last year”, Mr Vukićević noted. He added, “Once it becomes clearer as to how the aviation sector will function in the aftermath of the pandemic, we will have to refine the company's commercial strategy and organisational structure. We might have to reduce our workforce”.

Commenting on the 155 million euros in state aid earmarked for Montenegro Airlines over the next six years, which was allocated by the government prior to the coronavirus and is now under review by the country’s competition watchdog, Mr Vukićević noted, “All countries in the region with national carriers have done this. They have injected much more funds than Montenegro into the recovery and development of their airlines. We are talking about hundreds of millions of euros in debt taken over from Jat by the state and investments in Air Serbia. Similarly, in Croatia, the government aids Croatia Airlines with ten million euros each year for public service obligation flights”. Mr Vukićević added, “We can kid ourselves how other carriers would fly to Montenegro if Montenegro Airlines were to cease operations and that it would be more affordable. However, practice has shown this to be untrue. Each nation that doesn’t have its own flag carrier depends on others. Anything other than purely commercial interests cannot be expected from other airlines. In July and August everyone wants to fly to Montenegro, but in January and February they won’t because it’s a loss-making period. This airline was not founded with the sole purpose of being a profit-maker and neither is that essential. The company’s importance is measured in its contribution to the overall economy and tourism industry”.