ToMontenegro unveils launch plans


Montenegro’s new national carrier is hoping to launch ahead of the height of the summer season. It initially plans to operate two aircraft but is adamant more will join the fleet. ToMontenegro’s CEO, Predrag Todorović, said, “Now is the time for a fresh start. The aim is to create a new and modern airline that will be based on market principles. It will be efficient and have a sustainable business model. Having a national carrier is a necessity and we want Montenegrins to be connected with Europe and the world. Due to its geographic location, Montenegro relies heavily on air transport. This new airline is considered an investment by the government, not an expense, as it will give back to the economy”.

The state recently purchased two Embraer E195 jets for the new national carrier. These were previously operated by Montenegro Airlines through an operational lease, however, the company missed a number of payments for the jets. “In the long run, over a period of ten years, it is much cheaper to have aircraft in your ownership than to lease them. We have these two jets as a foundation from which we will build up the airline. However, no one sets up a carrier just to have two aircraft. We will have three, four and even six. It is completely unprofitable, and the fixed costs are too high, to have just two jets. How quickly the fleet will develop depends on market conditions. The company will be developed in phases”, Mr Todorović said.

The airline’s first route from both Podgorica and Tivat will be Belgrade. “We are lucky to have a route such as Belgrade that generates significant revenue and profits that we will be able to rely on from the very beginning. There are also a few other destinations that are of interest, but their launch will depend on whether those markets are open at the time we commence operations, as well as demand and cooperation with tour operators”, the CEO noted. He added, “For example, the Russian market is of great interest, as well as a select few in Western Europe where we have large tour operators buying significant capacity. They have already shown some interest but if that particular country is closed then there is no point in flying there and we will have to adapt to those changes”.

ToMontenegro plans to set itself apart from its predecessor. “We want this airline to be the pride of our country and serve as an example in the region as to how well such a business can be run. The most efficient airlines are usually not state-owned, so our aim is to base our development on such principles while being owned by the government. Our goal is to launch before the summer, which would be important for Montenegro’s entire economy. We know everything that needs to be done and we are working on achieving this goal. However, not everything is up to us. There are certain regulations that have to be met, both at home and abroad”, Mr Todorović concluded.


Comments

  1. Anonymous09:09

    Yeah... yesterday it was reported that MNE is facing a smallpox pandemic on top of exploding covid numbers. No one will go for holidays to MNE this summer. Catastrophic situation in the country right now.

    ReplyDelete
    Replies
    1. Anonymous10:10

      so what, it‘s not pest epidemic, every county has now and then smallpox outbreak....
      actually I will go to MNE this summer !
      why r u being so dramatic :o

      Delete
  2. Anonymous09:34

    Wish them good luck

    ReplyDelete
  3. Anonymous09:34

    It's a big deal that they managed to purchase aircraft for them.

    ReplyDelete
    Replies
    1. Anonymous09:42

      +1

      Delete
    2. Anonymous09:46

      And they got it for 21,7 million which is a great deal. These birds are not that old.

      Delete
    3. Anonymous10:06

      How old are they?

      Delete
    4. Anonymous10:14

      10-12 years

      Delete
  4. Anonymous09:37

    Good luck, but except for words I don't really se how this time it would be different.

    ReplyDelete
  5. Anonymous09:38

    No surprise BEG will be their first route.

    ReplyDelete
    Replies
    1. Anonymous10:07

      They mentioned a few times (MGX before them as well) that these route is very profitable. I'm starting to wonder what is the profit on this route.

      Delete
    2. Anonymous10:15

      There are a lot of passengers and costs are low because of proximity so of course it's profitable.

      Delete
    3. Anonymous11:27

      Just because it was profitable in the past doesn't mean it will be in the future. JU has positioned itself on the market and I dobut they will just retreat without a fight.

      Delete
    4. Anonymous21:11

      Considering JU's astronomic prices on the route (since YM went bust) and use of ancient ATRs, I'm sure people can't wait for an alternative.

      Delete
  6. Anonymous09:38

    Seems like they at least have a professional management. Good luck to them

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    Replies
    1. Anonymous09:40

      Who is this Todorovic guy?

      Delete
    2. Anonymous10:21

      This is his linkedin
      https://www.linkedin.com/in/pedja-todorovic/

      Delete
    3. Anonymous21:12

      Seems like a professional. Definitely not a political appointee. Unlike what we had in the past with Daliborka at Montenegro Airlines.

      Delete
  7. Anonymous09:42

    If would be a disaster if they missed the summer season. They need to launch next month to have any sort of chance of getting summer bookings.

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    Replies
    1. Anonymous21:11

      Agree but not gonna happen.

      Delete
  8. Anonymous09:42

    What about that 1 YM Fokker left. I assume they will use that too?

    ReplyDelete
    Replies
    1. Anonymous09:44

      The resources for that one are close to expiry. There is no point in returning it to service.

      Delete
    2. Anonymous10:11

      And what about third E195?

      Delete
    3. Anonymous10:13

      I believe they are negotiating about it.

      Delete
    4. Anonymous10:40

      AOA and AOB purchased now, AOC purchased earlier on 12 years credit and AOD returned to lessor

      Delete
  9. Anonymous09:45

    Good to see things are moving in the right direction.

    ReplyDelete
  10. Anonymous09:46

    Who won the consultancy agreement?

    ReplyDelete
    Replies
    1. Anonymous10:08

      They haven't announced the winner yet.

      Delete
  11. Anonymous10:04

    I'm from Slovenia and I find it interesting that the government has managed to start work on this airline so quickly, compared to ours which has just been talking about a new national airline for two years. Kudos to them.

    ReplyDelete
    Replies
    1. Anonymous10:06

      Because there is a political will.

      Delete
    2. Anonymous10:33

      Showing the Slovenian government how things should be done

      Delete
  12. Anonymous10:07

    Wasn't a certain expert here claiming in the comments how he has on good authority that the government has already decided to have a similar scenario in Montenegro as in Macedonia with a dominant LCC. Doesn't seem that way to me.

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    Replies
    1. Anonymous10:32

      There is no room for comparison between MNE and NMK, which had so many carriers created and failed during the last 30 years. At least W6 is their national carrier.
      YM was a smaller regional airline but had a respectable fleet and network.

      Delete
    2. Anonymous09:38

      and more then respectable losses

      Delete
  13. Anonymous10:11

    So they are sticking with this 2Montenegro / ToMontenegro name.

    ReplyDelete
    Replies
    1. Anonymous10:32

      can't wait to see the branding

      Delete
    2. Anonymous10:33

      I don't mind the name but it's a bit low costish.

      Delete
  14. Anonymous10:34

    With 2 aircraft they can have a respectable network. I wonder what will its routes be. Besides BEG of course.

    ReplyDelete
    Replies
    1. Anonymous18:42

      Vienna, Zurich, Frankfurt, Moscow and Ljubljana

      Delete
    2. Anonymous18:42

      Paris too

      Delete
  15. Anonymous10:34

    So they will have flights from Podgorica and Tivat as well?

    ReplyDelete
  16. Anonymous10:38

    Let's hope they consider LIS as a destination just like YM did. 2 weekly E195 is absolutely perfect. They can then code share with TP.

    ReplyDelete
    Replies
    1. Anonymous18:46

      What's the obsession with LIS?

      Delete
    2. Anonymous20:12

      It's a destination not very popular in the region and YM wanted to popularise it.
      TP failed in BEG and so did W6 to LIS then maybe it would be good to try in MNE.

      Delete
    3. Anonymous21:53

      Yes that sounds like perfect logic

      Delete
    4. Anonymous09:39

      a runing joke. theres more needed destinations then that one

      Delete
  17. Anonymous10:58

    So they will be no different than Montenegro Airlines? Whats even their plan?

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    Replies
    1. My thoughts exactly. I don't have enough info so I can't say for sure and guarantee, but I think it's highly likely the complete show is performed just to get rid of Milo's uhljebs in order them to be substituted by new government uhljebs. I sincerely wish it were not the case, and if not, they can actually become an example what OU, better saying cro gvt should do. But somehow I don't hold my breath for positive outcome, both cases

      Delete
    2. Yeah, I'm full-on in with the skeptics. If running an E195 back and forth to Tesla was so profitable, what happened to the predecessor? Flying an E195 between Tivat and Moscow is at a huge disadvantage to the airlines flying 737s and A319/320s. Sure, buying planes might cost less over time, but leasing allows you to acquire more capacity faster. If you acknowledge that two planes are not enough, as they admit, from where are they going to get the money for more capacity? Certainly not from operating cash flow. (Here's looking at us Montenegrin taxpayers to pay for an airline we'll hardly ever use.) State-based airlines are just a bad idea. It's far cheaper for taxpayers and passengers for governments to contract with private carriers if they really require certain routes be kept open for whatever reason. It just seems that Podgorica is hell-bent on hamstringing the MNE economy with one bad investment after another (Here's looking at you China.)

      Delete
  18. Anonymous11:41

    Have they obtained a IATA code? Are there any "J" or "Y" free codes left?

    ReplyDelete
    Replies
    1. Anonymous11:50

      Not yet. Have a feeling they will get some number codd.

      Delete
    2. Anonymous12:20

      Why would they need a J or Y code? That's history...

      Delete
    3. Anonymous13:07

      Maybe following the logic of the countries in the region?
      GM seem to be previously used by Air Slovakia it would be a good code. Maybe G2?

      Delete
  19. Anonymous18:44

    The gov has said this will be a "budget airline" should the national carrier of a country be marketed as budget? all MNE has is Ryanair to Pod. There's loads of vaccinated British, eager to spend money! No news in the UK about slots. Whether it's at Stansted or their old slots at Gatwick.

    ReplyDelete
    Replies
    1. Anonymous18:48

      Montenegro Airlines flew to Gatwick and failed.

      Delete
  20. Anonymous18:44

    At least they are working on it and dedicated to make it work. Wish them all the best.

    ReplyDelete
    Replies
    1. Anonymous18:47

      But now begins the hard part. Getting AOC, getting slots, forming route network...

      Delete
    2. Anonymous18:48

      Slots are really not a big deal at the moment.

      Delete
  21. Anonymous20:23

    Yay! Good to see we will have 3 flag carrier in ex-Yu after all.

    ReplyDelete
  22. Anonymous20:25

    This will not work

    ReplyDelete
  23. Anonymous20:59

    Fingers crossed this works.

    ReplyDelete
  24. Anonymous21:00

    Change the name

    ReplyDelete

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