The first low cost airline to serve Montenegro will be Air Berlin in 2011. The largest German airline, which is not part of the Lufthansa conglomerate, plans to commence services to the country from its hub at Nuremberg Airport. The decision comes after talks were held with Predrag Nenezić, Montenegro’s Minister for Tourism. With the financial crisis still brewing, Montenegro has moved away from the concept of being a holiday destination designated only for the rich and famous.Following strict protectionist policies, the Minister said that the Government is considering subsidising low cost airlines in order for them to begin flights to Podgorica and Tivat. “The main reason why there haven’t been any low cost airlines in Montenegro so far is because there has been no interest”, Nenezić told the “Pobjeda” newspaper. It’s no secret that the Government has done little to entice low cost airlines to commence flights. Last year, the Ministry for Transport said, “Low cost airlines that are interested in commencing services to Montenegro want certain amenities, such as lower airport taxes, reduced airport handling fees and so on. If we allow this to happen we would seriously be infringing competitiveness regulations and equal rights for all”. The Ministry also warned that there was “a dark side to low cost airlines”.
The European Union abolished entry visas for Montenegrin citizens in December 2009. Montenegro Airlines is expected to be privatised but the process has stalled. Whether the Government plans to privatise its national carrier this year and introduce some competition in 2011 remains to be seen.
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