NEWS FLASH
The management of Air Montenegro has met with the Montenegrin Ministry for Capital Investments as the two sides seek an appropriate avenue to inject funds into the airline, that would be in line with European Union state aid rules. The state-owned company is seeking finances to cover losses generated over the winter season, while further financial resources will be required for Air Montenegro to expand its fleet and launch new routes next year. The carrier warned it will face liquidity issues by autumn 2023 if it does not receive the requested state support. The government has said it is seeking ways to assist the airline but warned it will be difficult to find a way to legally help the carrier. The Montenegrin government shut down the country’s former national airline, Montenegro Airlines, after it was no longer able to provide state support to assist the heavily indebted company.
At the beginning they said Air Montenegro will be sustainable unlike the old airline. Fairytale didn't last long.
ReplyDeleteJust pump some money into the company. After all the Serbian and Croatian government's constantly do with their Airlines. Even Germany did with Lufthansa!
ReplyDeleteGood game haha
ReplyDeleteNow isn't that a big surprise? The key personnel inside the airline consists of the same people as in YM, now with added internal hostilities and quarrels against former Serbian pilots. Still friends of friends get more or less attractive positions...after all its YM 2.0 wrapped in different papers and colors.
ReplyDeleteAs always, Montenegro keeps winning! ;)
What isn't a big surprise is that a small newly formed airline needs state support just as their neighbours to the north and most flag carriers everywhere in the world.
DeleteFYI, Air Serbia is not in the government budget for 2023. If you need examples please use other governments in the region.
DeleteSorry, that's only been the case for the past decade. My mistake.
DeleteAir Montenegro started without any previous debt. If they inherited Montenegro Airlines debt it would have been more than a decade of accumulated debt.
DeleteMind you, not foreseen in the 2023 budget!! They have been receiving money from the GoS ever since Air Serbia was established, but hey, not in the 2023 budget!
DeleteAnonymous 16.39 you are deluded if you think Air Serbia doesn't get money from the government!
DeleteMontenegro keeps winning!
ReplyDeleteHa ha
DeleteKeeps winning government subsidies, that is. After just one year of operations :D
DeleteAgain.
ReplyDeleteAirlines with 100% state capital will always go bankrupt in the Balkans, if they do not go bankrupt it will be because of the money they will receive from the state to stay afloat.
ReplyDeleteAir Serbia is not 100% state capital
DeleteThe two main lines that they have is TIV/TGD to BEG for crazy expensive prices because of the duopoly with JU. There is no reason for them to need State funding unless someone is stupid or corrupt.
ReplyDelete