The Montenegrin government yesterday adopted a decision to designate six Public Service Obligation (PSO) routes from Podgorica Airport. PSOs enable the allocation of state funds to support unprofitable air services deemed essential for the economic development and connectivity of the regions they serve. The designated year-round routes include Brussels National, Amsterdam, Zagreb and Bari, while services to Paris Charles de Gaulle and Frankfurt will operate on a seasonal winter basis. A public tender for the selection of operating carrier(s) is expected to be launched shortly. The PSO services are scheduled to commence on June 1 this year and will run for a four-year period, until May 31, 2030.
Air Montenegro is widely expected to operate the majority of the PSO routes, if not all six. The carrier is facing intensifying competition at its home base, with low cost airline Wizz Air set to station aircraft in Podgorica starting late next month and introduce seventeen new routes. Air Montenegro maintained services to both Paris and Frankfurt until October 2025, while it has already announced plans to launch flights to Bari this coming summer in cooperation with the Maestral Resort and Casino in Budva. On the other hand, Ryanair operated services between Zagreb and Podgorica from September 2021 until October 2024. Prior to that, Croatia Airlines linked the two capitals from June 2008 until February 2013.
The government’s decision will formally enter into force in eight days, after which a public call can be issued to interested airlines. The state has said that frequencies will vary by route and will be agreed with the selected operating carrier. Montenegro will become the third country in the former Yugoslavia to introduce Public Service Obligation flights, joining Croatia and Serbia. Croatia’s existing PSO contracts end in late March, while Serbia’s will conclude at the end of 2027. Both are expected to be renewed.
So it is possible with EU laws in mind... See Slovenia?
ReplyDeleteLol do you even read. Problem in slovenia is law they have… not eu
DeleteDidn't Slovenia change the law so they can allow PSOs?
DeleteThe whole PSO setup is there to support a national airline... at least in EU is used almost exclusively for that purpose. LCCs don't like it. Slovenia lost the national airliner, so there is no sense in PSO establishment.
DeleteThere are many examples of PSO routes being operated by non flag carriers across Europe.
DeleteWonder who will operate Podgorica-Zagreb. Air Montenegro or Croatia Airlines?
ReplyDeleteOr Ryanair maybe?
DeleteIt's going to be Air Montenegro for all of them. This whole thing was designed to give them state money.
DeleteRyanair is not committing to PSO routes as they cannot stop route whenever they want or threaten with stopping.
DeleteI believe Embraer 195 will make this route viable. The loads with Ryanair were not bad, so there is demand, but not for 180 seats of a LCC.
DeleteIf you need PSO to Paris and Frankfurt....
ReplyDeleteor Amsterdam
DeleteThat's exactly why PSO exists.
DeleteIf a European market can't make Paris or Frankfurt self sustainable than there are much bigger issues on that market.
DeleteYes, there is a huge issue and that is the size of population.
Delete09:13 That's the whole point of PSOs. But you know that already and you only want to belittle a small country.
DeleteMost small markets can make those work. Somehow Air Montenegro Airlines made them work for decades.
DeleteAnd same way Wizz Air will make Podgorica-Beauvais work. This is just a money grab for Air Montenegro. Nothing more.
DeleteThis indicates to me that BVA will probably be summer season, while Air Montenegro to CDG is winter season. Weird in any case.
DeleteWizz is also getting subsidies for its Podgorica base.
DeleteIt is a lifeline for the flag carrier, so to speak
ReplyDeleteThe only question is: will that lifeline be enough to maintain 4O afloat?
DeleteFlight to Bari is really necessary from Podgorica? It is vital for Podgorica's economic development?
ReplyDeleteIts close, they burn less fuel and get money for it. Its all designed to pump money into the airline, they dont care about connection to Bari.
DeleteOne of the bosses wishes so 😄 Anyway, it's a nice addition.
DeleteIf now were 90s or 00s, I would say yes, but in 2026 I'm not sure. Specially for year-round.
DeleteThe reason you have Bari and Zagreb on the list is because the tender is a farce and the routes have been agreed with Air Montenegro. In their schedule they have space for two routes with short rotations so these worked for them.
DeleteBari is very popular from Dubrovnik so it could be from Montenegro also.
DeleteFor that money, they could buy ferry boat again and start daily rotations. Zagreb and Bari are not important for essential economic and connectivity of the state
DeleteTGD-ZAG is of no less public importance than INI-LJU. I hope we can agree many use PSO to support national airline and we should not expect different approach from one of the smallest Euro nations with low road/train connectivity too.
DeleteIsn’t Bari a heavily mafia-laden city? SCU, Capriati, Strisciuglio clans.
Delete^ Its a huge port, good for import-export biznis
DeleteYes, it’s necessary for the mafia shuttle to Ypres’s
DeleteMafia Shuttle Express, MSX airways
Delete@anonymous 9:57
DeleteIt can’t be the same. It’s money from Montenegro state and the state has political motives to be connected to ZAG. Perhaps it finally materialized due to their planned E.U entry + don’t have competition from FR any longer.
INI is in Serbia. Both make economical sense, but the first has politics backing it up.
Finally some strategic thinking. Brussels and Frankfurt are logical choices if Montenegro is serious about EU accession and business connectivity. Seasonal Paris makes sense given winter demand patterns.
ReplyDeleteThis is clearly designed to protect Air Montenegro ahead of Wizz Air’s base opening. The timing is not a coincidence either.
ReplyDeleteBut the government was the one who bought Wizz Air in the first place.
DeleteGood move. Tourism cannot rely only on summer low cost traffic. Winter connectivity to major hubs is essential if Montenegro wants stable year round arrivals.
ReplyDeleteZagreb absolutely not necessary.
ReplyDeleteBetter to include ZRH.
Zurich is already operated year round by Air Montenegro.
DeleteZAG was always performing on the brink of profitability from TGD, should get a go with PSO.
DeleteFrankfurt is operated as well by 4O.
DeleteFR could not have made TGD-ZAG profitable as there is no interest for it.
Just throwing the money.
That's why there is PSO - for routes which are not profitable and can't be despite the several attempts and there's some pax and needs. Those are neighbourhing countries with economic ties and some F&R too, there are CRO ethnics in the south etc.
DeleteWhy are you explaining aviation basics to people who are politically motivated and who just want to ridicule and complain?
DeletePolitically motivated to ask about the rationale of these routes? Are you ok? So the only acceptable comment for you would be "Well done to the Montenegrin government for a fantastic set of PSO routes".
DeleteWell there is some politics around PSO per design, cause it's government thing and every govt thing inlcudes politics.
DeleteBrussels under PSO is clearly aligned with Montenegro’s EU ambitions. Politically symbolic but also practically useful for institutions and NGOs.
DeleteBRU for sure but ZAG not.
DeleteMany national carriers fly politically motivated routes and OU nor JU not being the exception.
DeleteWhether ZAG-TGD-ZAG was profitable or not for FR is not a valid benchmark. For all we know, it might had been among the least profitable in their ZAG network, not necessarily non profitable.
Don’t now get offended, but 30% of flights from BEG operated by JU started as politically motivated.
The whole JU project since 2013 was politically motivated.
All major Middle East airlines’ growth was political.
The difference is in that some companies made it work for whatever reason (if destination grows and benefits then benefitting the airlines back) while others waste resources.
TGD-ZAG had decent loads, so there’s traffic. How sustainable would it be commercially with no polotical support is the same question one can ask airlines all over the world.
Aviation was almost never about economics, for the most part.
Zagreb under PSO is interesting. Historically the route struggled commercially. Maybe with proper scheduling and connections over both ends it can finally work sustainably.
ReplyDeleteAir Montenegro does not sell connecting flights and I'm not sure what sort of connectivity can exist on the other side unless Air Montenegro signs a codeshare with Croatia Airlines.
DeleteThey will probably move from ljubljana to zagreb since wizz will take over Ljubljana
Delete^ Yeah that's true. It's likely they will quit LJU with the Wizz competition.
DeleteConncetions to what? The bus to Cetinje?
DeleteAnd Berane
DeleteGood luck!
ReplyDeleteNow we know why Air Montenegro has not announced any new routes for next summer yet.
ReplyDeleteThey could not have done this 2 months ago so they could put tickets on sale at a reasonable time for a June launch?
ReplyDeleteExactly. By starting sales on time the flights could have been fuller and the government could have saved some money.
DeleteThese PSO contracts are always late in Croatia, and if I recall well Serbia was late with last INI contract too, so hardly Montenegro will do it better. Because a little of those are actual PSOs, more a way to pump some cash into national carriers.
DeleteOnly the Croatian one is late by a year to two forcing one of the PSO companies to discontinue ticket sales.
DeleteThe tender requirements will be that the airline's name must be made up of two words and must include the word Montenegro in its title.
ReplyDeletehahaha
DeleteThe key is that the tender process must remain open, transparent and non discriminatory.
Delete^ Yeah good luck with that
DeleteCan't wait to see the tender requirments.
DeleteAny idea how much money the government will set aside for this?
ReplyDeleteThey haven't said. We will find out soon enough.
DeleteIt's going to be a huge year for Podgorica Airport. Not sure how it is going to cope with the traffic. It is without doubt the worst capital city airport in ex-Yu. Without any expansion I just can't imagine how it will look like this summer.
ReplyDeleteI agree. The airport is completely unprepared for what is about to hit it.
DeleteThe real test will be whether these routes stimulate demand or simply shift passengers from existing indirect options.
ReplyDeleteA bit of both for sure.
DeleteWhat about Tivat?
ReplyDeleteGood. Montenegro is taking aviation connectivity more seriously than before.
ReplyDeletePSOs are often criticised, but for small markets they are sometimes the only realistic way to ensure hub access.
ReplyDeleteInteresting that Vienna isn’t included.
ReplyDeleteIt is operated by Austrian Airlines. And under PSO rules, route must not be served.
DeleteThis seems to be the only way how ZAG this year could get new airline.
ReplyDeleteZAG is already getting a new airline
Deletehttps://www.exyuaviation.com/2026/02/zagreb-airport-secures-first-new-route.html
I meant legacy.
DeleteExcellent news
ReplyDeleteWill Air Montenegro have enough aircraft to add 4 routes this summer?
ReplyDeleteIt won't be four extra since last summer they flew to Frankfurt and Paris which they obviously won't during this summer.
DeleteWill fares be capped under the PSO conditions?
ReplyDeleteUsually they are.
DeletePSO contracts in the EU often include fare obligations or maximum pricing rules, particularly for residents. Whether Montenegro introduces such conditions will depend on the final tender documentation.
DeleteI wonder whether the tender will allow split awards — one airline operating some routes, another carrier taking others.
ReplyDeleteMost PSO tenders allow for split awards unless explicitly restricted. If the tender is open and competitive, it is technically possible that one carrier operates, for example, Frankfurt and Paris, while another takes Amsterdam or Brussels. But I think it will be unlikely in this case.
DeleteIt will allow it in theory but we all know only one airline is winning this tender.
DeleteIf frequencies are too low these routes won’t generate meaningful economic impact.
ReplyDeleteMy guess is frequencies will hover between 2-4 weekly, depending on the route.
DeleteStronger winter connectivity might reduce the extreme seasonality that has always hurt Montenegro’s aviation sector.
ReplyDeleteI don't think two additional winter routes will make much of a difference in Air Montenegro's case.
DeleteSchiphol offers extensive onward connectivity, particularly to North America and Northern Europe. The success of the route will depend heavily on coordination with connection banks and whether interline agreements are secured.
ReplyDeleteI can’t wait to see how much money they will give them for five routes, which will surely be more than two weekly, and then compare it to what ASL receives from INI
ReplyDeleteJU living rent free in your head.
DeleteGentleman
ReplyDeleteThe funniest thing is there is no such a thing like PSO in the national legislation in Montenegro. Something is wrong here.
ReplyDeleteI believe they changed the legislation
Delete