Air Montenegro’s CEO, Vuk Stojanović, has described Wizz Air’s decision to open a year-round base in Podgorica, which will see the budget airline maintain up to 23 routes next summer, as a major development that brings both challenges and opportunities for the flag carrier. “On the one hand, the increase in capacity and competition, including Wizz Air’s routes to Ljubljana, Rome, Paris and Zurich (given Basel’s proximity), will give passengers more choice, improve Montenegro’s connectivity and potentially put downward pressure on fares. On the other hand, it means Air Montenegro must further upgrade its product, which includes improved service, clear differentiation and added value for travellers who prefer to fly with a different kind of airline. Air Montenegro is undoubtedly a company with a different business philosophy and passenger approach compared to low cost carriers”, Mr Stojanović said.
He noted that Air Montenegro “operates on a stable footing and has shown that its annual cabin load factor can reach around 80%, which, we are convinced, is one of the reasons Wizz Air decided to establish a base in Podgorica”. The CEO added that Air Montenegro only learned about Wizz Air’s new routes once they were officially announced and that these details will form the basis of the flag carrier’s new strategy which Is still being developed. “What we believe is that, in the long run, Air Montenegro will not face serious difficulties. On the contrary, it will show that it has the expertise and sensitivity needed to adapt to the new environment and deliver a level of service that keeps passengers’ trust”, he emphasised. Mr Stojanović added that Air Montenegro “has proven to be very resilient on routes where it faces competition, achieving strong results on flights to Belgrade (competing against Air Serbia), Istanbul (Turkish Airlines, Pegasus), and Paris (Transavia)”.
Air Montenegro handled 450.592 passengers during the January - October period, representing a year-on-year increase of 2.7%. Its average cabin load factor stood at 78% during the ten-month period. “Perhaps most striking is that the airline’s cabin load factor in March stood at 80%, while October ended with more than 85% seats occupied. The most popular routes in terms of passenger numbers were from Podgorica and Tivat to Belgrade, followed by services to Istanbul and Ljubljana”, Mr Stojanović concluded. Growth was achieved despite the carrier operating 43 fewer flights than last year. Air Montenegro has already outlined plans to lease a fourth Embraer E195 jet next summer.
I do not see them still being successful on the route to Ljubljana for example. Wizz offerent the same service for half of the price 4 times a week will take over the majority of the passengers.
ReplyDeleteIf they fly Monday, Wednesday and Friday they might be able to serve business travelers… and wizz is not flying on those days
DeleteWizz Air should launch LJU-SJJ as well. Given its larger presence in LJU, it must be possible to arrange some W-flights for that.
Delete^ Fully agree!
DeleteSorry, I don't share their optimism. It's a small airline and will be competing directly against Wizz on very short routes. No one cares about a snack on a 60 minute flight.
ReplyDeleteAir Montenegro’s biggest advantage is reliability and service. Wizz Air is cheap but inconsistent. There is room in the market for both models, especially during the summer.
DeleteAlso W6 can not fly outside the EU from Montenegro.
DeleteIf they were to start an TGD-BEG and TIV-BEG flights that would be a whole different discussion.
Good luck to them. They will really need it
ReplyDeleteThat's a great load factor
ReplyDelete+1
DeleteThey will be impacted by Turkish visq introduction too.
ReplyDeleteI wish them good luck. We need ex-Yu flag carriers to stay afloat.
ReplyDeleteHope and pray that PSO comes soon, and that they are selected
ReplyDeleteAny timeline on it?
That's probably what they think will save them.
DeleteGreat to finally hear some numbers from Air Montenegro. Load factors above 85% in October are impressive. But with Wizz basing an aircraft and opening 23 routes, the real test starts next summer.
ReplyDeleteWizz Air entering Podgorica in such a massive way will shake the market for sure. AM will have to step up its game quickly. They need better scheduling, more competitive pricing and better marketing.
ReplyDelete+100
DeleteJU will fill it too, it will have to offer more competitive fares for connections through BEG.
^ if it gets transfers from places like Istanbul and Athens, it will keep getting transfers to its 90 destinations from/to Podgorica. But hope dies last for you I guess.
Delete^ Are you OK? Who made that about JU's demise? Are we even reading the same comment?
DeleteYou obviously have not read mine.
DeleteHonestly, this is the best thing that could happen to Montenegro’s aviation sector. Let’s see some real fare wars next summer!
ReplyDelete+100
DeleteMontenegro is a small market for two carriers fighting on the same destinations.
ReplyDeleteThese numbers from Air Montenegro are decent
ReplyDeleteMore than decent
DeleteWizz Air didn’t come to Podgorica just to offer “more choice”. They came to dominate the market. 4O will have to be extremely smart with their network planning now.
ReplyDeleteMaybe closer cooperation with JU would help...doubt it will happen though.
ReplyDeleteI remember reading an interview around 2 years ago where Marek said they were open to cooperating closely with Air Montenegro but that the other side also has to be. So it's up to Air Montenegro.
DeleteI remember that too. Zero chance of that happening with the current political situation.
DeleteNothing could save Air Montenegro once Montenegro gets into EU. In addition to current routes, Wizz will start flying from both Tivat and Podgorica to Belgrade, LH Group will increase presence and offer transfers to most Air Montenegro destinations, and seasonal charters will keep bringing tourists to the coast. Air Montengro is done, they just don't know it yet.
DeleteFortunaley, Montenegro wont join soon EU soon
DeleteOutcome is inevitable, it might get postponed a bit. There might be a slim chance in turning Air Montenegro into ACMI provider.
DeleteWould anyone be potentially interested in buying Air Montenegro?
ReplyDeleteWhy? For 3 planes and a small market that is about to be ruled by Wizz Air? I really don't see any value. And any EU airline can just open a base if it wishes to. it would be cheaper probably than buying them.
Delete"Its average cabin load factor stood at 78% during the ten-month period. “Perhaps most striking is that the airline’s cabin load factor in March stood at 80%, while October ended with more than 85% seats occupied."
ReplyDeleteThese are good numbers, I did not expected them to have such high loadfactors.
They have 3 planes
DeleteGoes to show they did good fleet management. They don't pay for capacity they can't utilize.
DeleteI think they hsve another wetleased E195. Total of 4
DeleteIn todays European aviation world, there is hardly any space for small airlines with a homemarket without real buying power. Air MNE will be soon history. Ex YU, but maybe also Albania/Romania/Bulgaria, or one of them, could join forces and further develop JU into a regional not just Serbian carrier, serving tourism, economy and ethnic traffic of the involved nations. Our region needs less politics but more ratiotional economic considerations and wisdom. Cause while we still think in borders, questionable heroism and overpatriotism, we lose more and more own economical potential. Nothing against some foreign influence, but key industries should be still controlled by local domestic capital, at least in a healthy environment. About 80% of the aviation market in ex YU is contrlled by foreign companies and that's just by number of passengers, dont want to know how much it is in Euro numbers....
ReplyDeleteAir Montenegro needs a stronger presence in Western Europe.
ReplyDelete