The Montenegrin Ministry of Transport has officially launched a public tender for the operation of five Public Service Obligation (PSO) air routes from Podgorica, marking the next step in the country's plans to improve connectivity through subsidised scheduled services. Airlines have until August 31 at midday to submit bids for the contracts, which have a combined estimated value of 4.79 million euros excluding VAT. The bids will be opened immediately after the submission deadline Unlike the Ministry's earlier plans, which envisaged six PSO destinations and the launch of services by June 1 this year, Amsterdam has been omitted from the final tender.
| Route | Estimated contract value |
|---|---|
| Podgorica - Brussels | €1.486.865 |
| Podgorica - Paris | €1.051.331 |
| Podgorica - Frankfurt | €912.660 |
| Podgorica - Zagreb | €661.790 |
| Podgorica - Bari | €680.742 |
All five routes will be required to operate year-round with a minimum of three weekly frequencies. Airlines may submit bids for one or multiple routes, with each route tendered separately. The procurement documentation specifies that aircraft used on the services must offer at least 110 seats, effectively limiting eligibility to narrowbody jet operators. The Ministry will select the winning bids based on the most economically advantageous offer, with 90% of the score determined by the proposed price per return flight and the remaining 10% based on aircraft seating capacity. The tender defines the offered price as the airline's maximum operating cost plus a reasonable profit for each return service. The successful carrier will also be required to provide a performance guarantee equal to 10% of the total contract value.
The draft contract includes financial penalties aimed at ensuring operational reliability. Airlines will face a 2.000-euro deduction for every cancelled flight unless the cancellation has been approved in advance by the Ministry's designated working group. The Ministry also reserves the right to terminate the contract if an airline repeatedly fails to meet its obligations and does not rectify deficiencies within fifteen days of being formally notified. Air Montenegro is widely expected to emerge as the main beneficiary of the new subsidised routes.
Is 5mio enough to keep Air Montenegro afloat?
ReplyDeleteProbably not....
DeleteBut it's 5mio infected by mid September....
Will helo for the winter.
Who actually 'needs' to fly between Bari and Montenegro in winter? Serious question.
ReplyDeleteI think it is for Italian gamblers that go to some resort in Montenegro. But the question is why is it being subsidized.
DeleteMy guess is because this is a route with demand so they want 4O to make even more money.
Delete^ No, PSO is provided for unprofitable routes. Not profitable routes with huge demand.
DeleteAha makes sense, is that why Paris, Frankfurt and Brussels are on the list? Because they are unprofitable with small demand?
DeleteWell it seems like it.
DeleteIf true then MNE market potential is laughable and goes to show only BEG can support daily or more than daily flights in winter. That is why 4O is doomed to fail like YM did.
DeleteLol.... wait... Montenegro is obsessing about its potential EU membership, painted a plane, Kos was there etc yet flights to BRU need subsidies in order to survive?
ReplyDeleteYou can't make these things up.
Don't be too upset!
DeleteI am not upset, I am just laughing as this is funny and shows how little actual demand is between MNE and Brussels. Very symptomatic of the Brussels bubble.
DeleteThe branding on the aircraft fuselage has nothing to do with a TGD-BRU route.
DeleteKind of odd they need to subsidise basic routes like Frankfurt, Paris and Brussels.
ReplyDeleteIt's not odd, it's just a way to finance 4O. Just shows nothing will change compared to YM.
DeleteBravo Hrvatska!
ReplyDelete😂
DeleteFinally
ReplyDeleteIt was delayed until Air Montenegro got the fourth plane.
DeleteAir Montenegro seems like the obvious winner here. I would be surprised if any foreign airline is interested in operating these routes under PSO conditions.
ReplyDeleteOU could apply for ZAG-TGD and operate the A220. They have the spare capacity especially in winter.
Delete^ they could but it won't happen.
DeleteIt's too early
DeleteHonestly would be better by Dash or ATR 6 weekly....probably same costs as 3 weekly by the 110 seats minimum jet....
DeleteWhy did they remove Amsterdam?
ReplyDeleteTo add Zagreb for some reason… Why would Zagreb be more important than Skopje or Sarajevo??!?
DeleteMost people drive.
DeleteThey can only choose routes within the EU to meet EU terms and conditions.
DeleteI expect Croatia Airlines to bid for Zagreb. That route seems like the only one where Air Montenegro might face genuine competition.
ReplyDeleteFor the A220-300 that would be about 14 Euro per available seat.
DeleteFor Ryan's A320 that would be about 12 Euro per available seat.
I see both of them applying.
or maybe even wizz ... i dont see air montenegro keep on flying ljubljana tbh
DeleteSo this is within EU law? If so does that mean that Bratusek lied when she said it's impossible to do PSO?
ReplyDeleteWhere is AMS,MUC,CPH,GOT?I really dont understand is there any demand for route such as Zagreb - Podgorica/Brussels
ReplyDeleteIf MNE Gov authorized fifth freedom rights would JU consider TGD - FCO?
ReplyDeleteWhy would they bother?
Delete1. New revenue.
Delete2. Increase in MNE market share
3. Improve brand awareness
Didnt they mention Amsterdam some time back? And now nothing.
ReplyDeleteZagreb, really?
Bari?
Bari je potreban glavonjama za produzeni vikend kao i za shopping njihovim damama :)
DeleteBari is needed by the bigwigs for an extended weekend and for shopping by their ladies.
Delete