El Al joins Montenegro race

El Al has Montenegro Airlines in its sights

Following the example of the Israeli based Arkia Airlines, its main rival, El Al Israel Airlines, has purchased tender documentation needed for the takeover of 30% of Montenegro Airlines’ shares. El Al has been keen to become a part owner of the Montenegrin carrier for several years. Last year, the airline planned to partner up with the European Bank for Reconstruction and Development and become Montenegro Airlines’ strategic partner. However, the plan fell through after the Israeli carrier requested control over Podgorica and Tivat Airport, which was not to the government’s liking.

El Al has a fleet of 40 aircraft and operates to over 40 destinations worldwide. The airline carried 3.8 million passengers on scheduled flights in 2009. One of the conditions for the purchase of Montenegro Airlines is for a carrier to have carried 2 million passengers or over in 2009. However, the other bidder, Arkia, carried only 710.000 passengers last year. Whether the government will make an exception for the abovementioned rule remains to be seen. Last week, the Montenegrin Prime Minister met with Arkia CEO and owner in Tel Aviv.

So far, no other airline has expressed interest in the Montenegrin carrier. Airlines have until December 15 to place their bids. The government has not set up a starting price for the 30% share package.

Note: In the original article published at 9.00 CET the wrong 2009 El Al passenger statistic was provided. It has now been amended. Apologies for the oversight.