NEWS FLASH
The newly elected Montenegrin Minister for Capital Investment, Mladen Bojanić, has described the existing financial state of national carrier Montenegro Airlines as critical following talks with the management and warned the government is considering shutting the company down, among other options. “The situation is very bad both in terms of liquidity and inter-company relations. It was a shock to learn about the relationship between the Board of Directors and the management. This government won’t run away from making difficult decisions or delay them as has been done in the past”, Mr Bojanić said. The Montenegrin government announced last week it would replace the national airline’s management within the next two to three weeks and form a team of experts who will analyse the situation at the indebted and loss making flag carrier and decide its faith by February 2021. Following yesterday’s talks, the government will meet with members of the airline’s management again later today. The Montenegrin Finance Minister, Milojko Spajić, noted, “A decision regarding Montenegro Airlines has to be made quickly so we can plan for next year’s budget”.
I think this is the end.
ReplyDeleteSad. It is a pity that the countries of the former Yugoslavia have not been able to consolidate the aviation industry. A number of small airlines have not had a chance to survive in the long run. Unfortunately, politicians have not been able to look beyond national frameworks and create a common airline for the whole area that could be at least as important player, if not more as Air Baltic is/was.
ReplyDeleteMontenegro is planning on selling Milo's Mercedes for €1 million. That's how bad the situation is right now.
ReplyDeleteUgly truth is that MNE doesn't need YM.
Farewell YM
ReplyDeleteUnfortunately, there was a fantasy that a national carrier for a small republic can survive, or even be competitive, in this modern day and age. The original JU not only survived, it dominated a significant sector of Europe, both/expertise in quality of the people working there but also in the equipment and network. There wasn't 4 different management teams, CEOs etc, and costs could be streamlined. This is a good, yet sad, dose of reality... I'm not saying that YM could not be a subsidiary of the original JU, but certainly not a plaything where politicians use it to employ relatives, lovers or friends.
ReplyDeleteNek se zavrti propela!!!
ReplyDeleteThey are lucky it's covid time as I am sure some airports would have impounded their planes like PRN* did some years ago.
ReplyDeleteYM102 is late by an hour (TGD-BEG), seems like the end is near. Let's see if this means they are grounded.
ReplyDeleteNew Time: 19.45
DeleteBEG threatened to impound their plane over unpaid bills. It was paid last minute from what I heard.
DeleteWhen was this?
DeleteYes but the airport didn't get the money, they got a bank guarantee that the money will be paid tomorrow. Today 38 people quit, emails deleted and so on..
Delete38 people quit at YM?
Deleteweird situation between BoD and management
ReplyDeletei wonder what is that all about
MNE government does not have money to pay for YM anymore. In a year or so the first payment of some $70 million is due to the Chinese for the construction of the new motorway. Add to that a very poor tourist season, and the question is where will the money come from to pay for YM. They can either borrow money from banks, or IMF etc. or accept the closing of Montenegro Airlines as a necessary cost saving measure in today's day and age. The question then becomes how will the current government in Podgorica deal with the political fallout for closing YM? Are the citizens of Montenegro ready to accept the bankrupt YM?
ReplyDeleteWill LCC be able to fill the void after MA stops flying?
DeleteOr will Montenegro gov. call (subsidize) other carriers to come in and fly to a few locations that the gov deems important for the connectivity of the country? Places like Paris, Brussels, Frankfurt, Moscow, London.
I think Montenegro Airlines days are numbered.
DeleteAt this moment LCCs are drowning in unused resources and they cant wait for a death of a legacy carrier even as small as YM to step in. I think next year W6 from Belgrade will start serving TGD and seasonal TIV, while FR will make TGD a base with 2-3 aircraft.
DeleteA LCC on a route from TIV/TGD to BEG?! Pure fantasy.
DeleteNot the responsibility of the taxpayers to subsidize businesses.
ReplyDeleteDefinitely not for private businesses, but not true for state firms and state/city authorities, like water or energy providers.
Delete