Summer changes for Adria, B&H and Montenegro Airlines
Tomorrow, the 2012 Northern Hemisphere summer season begins. Following on from last week, when changes and additions were published for Croatia Airlines and Jat Airways, this week amendments for Adria Airways, B&H Airlines and Montenegro Airlines can be viewed.
Adria Airways’ summer season sees a big reduction in operations compared to last year. Flights to Paris, Warsaw, Toulon and Banja Luka were all suspended last year. Seasonal flights to Athens, Dublin, Kiev and Stockholm won’t be resuming this summer. The airline will reduce frequencies on regional flights with services to Priština, Tirana and Skopje taking a hit. On the other hand, the Slovenian carrier will launch new flights to London Luton Airport, increase frequencies to Copenhagen and operate numerous charters.
B&H Airlines will operate flights only to Istanbul, Copenhagen and Zurich via Banja Luka. The airline currently has a single ATR72 in operation. However, if its Turkish part owner manages to make amends with the Bosnian government other aircraft could be returned to the B&H fleet which would lead to some destinations being resumed.
Finally, Montenegro Airlines will reduce frequencies to several destinations. The most notable is a reduction of nine weekly flights from Podgorica to Zurich. The airline will also halve the number of flights to Moscow. However, the Montenegrin carrier will introduce a new service from Tivat to London Gatwick and will strengthen frequencies to Paris.
By clicking on the links below, you can view the 2012 summer season changes in more detail.
Adria Airways • B&H Airlines • Croatia Airlines • Jat Airways • Montenegro Airlines
Déjà vu?
Adria Airways CEO, Klemen Boštjančič, has announced that if Adria Airways’ pending privatisation process fails, a single airline for the former Yugoslavia will need to be created as no carrier in the region has the chance to survive in the current economic climate. “If the sale of Adria to a foreign partner fails, then our last chance is for regional integration with Croatia Airlines, Jat Airways and Montenegro Airlines”, Boštjančič told one of Slovenia’s most popular web portals - “SiOL”. The news comes a week after the Association of European Airlines urged Adria Airways to take a leading role in the integration of the former Yugoslav aviation market.
Adria’s CEO notes that Brussels has already shown support for the creation of a single airline for the former Yugoslavia. “Croatia will soon become an EU member and Serbia and Montenegro are not far off”, Boštjančič adds. However, Adria will first attempt to put itself on the market to foreign airlines. By the end of the month a financial consultant will be chosen to assist the Slovenian carrier with its privatisation process. While Boštjančič says that there is interest in Adria, he notes, “We and the government have to do everything in order for Adria Airways to get a new owner but I do not know whether we will succeed”, adding that regional cooperation must develop simultaneously with the privatisation process. Currently, many bigger players in Europe such as LOT Polish Airlines and Czech Airlines are awaiting privatisation.
Adria Airways already enjoys cooperation with airlines in the former Yugoslavia. It has code share agreements with both Jat Airways and Montenegro Airlines. Klemen Boštjančič says that regional integration could fail out of purely political reasons. All of the national EX-YU airlines ended 2011 with multi million euro losses. Once again the debate over a single national carrier for the countries of the former Yugoslavia reopens, 21 years after its break up.
Scandinavian model for former Yugoslavia suggested
The Secretary General of the Association of European Airlines, Ulrich Schulte Strathaus, has told the Slovenian daily “Dnevnik” that in order for the national carriers of the former Yugoslavia to survive they will need to unite into a single airline. “The once single Yugoslav market is now fragmented and a regional solution is necessary. The region needs an airline that would cover local needs and connect with global hubs”, Strathaus says. He notes that he recently discussed the issue with Adria Airways’ management. “It would be great if Adria Airways, which has extensive knowledge of the Balkan market, were to initiate a regional summit which would be dedicated to this issue, however, due to political quarrels I doubt this could happen”, Strathaus adds.
The Association of European Airlines counts 34 members, mostly national carriers. Adria Airways, Croatia Airlines and Jat Airways are all members. Montenegro Airlines also used to be a member of the association but mysteriously left after a few months. Strathaus believes that certain markets in the former Yugoslavia are too small to have their own national carrier. He notes that Serbia can’t find an investor for Jat, Croatia Airlines and Montenegro Airlines are operating with mounting problems and that B&H Airlines will go bankrupt when Turkish Airlines ceases financing it.
Last year, an idea to unite the former Yugoslav aviation market was put on the table during talks between the Serbian government and Turkish Airlines. It was suggested that a regional airline, Balkan Airways, could serve as a national carrier for Serbia, Bosnia and Herzegovina, Montenegro and Macedonia. In September 2011, Croatia Airlines and Adria Airways reached an agreement over a common business plan model. The two airlines agreed to strengthen ties and cooperate on jet leasing as a means of improving efficiency and streamlining fleet utilisation.
B&H resumes operations
B&H Airlines has resumed operations with a single ATR72 and will operate flights to Istanbul. It’s Airbus A319, will soon rejoin Turkish Airlines’ fleet as the carrier abruptly ended its lease of the aircraft to B&H on February 27.
Government approves Montenegro Airlines privatisation
The Montenegrin government decided yesterday that Montenegro Airlines will be privatised during 2012. It follows a difficult year for the national carrier in 2011. Montenegrin Prime Minister Igor Lukšić said that the airline will be offered to investors through a public tender. Montenegro Airlines has become a costly business to keep running after the government agreed to provide 400.000 Euros to the carrier each month to cover operational costs and write off the airline’s debt to Podgorica and Tivat airports. In order to cover the debt owed to the Serbia and Montenegro Air Services Agency the government has offered them ownership of the Park Hotel in Bijela on the Montenegrin coast. Earlier in 2011, the government wrote off a further 3.2 million Euros in debt and ordered the country’s two international airports to lower its fees to the national carrier. Recently, there has been discontent amongst pilots unhappy with late wages. Unlike its regional rivals, the global economic gloom did not have an effect on Montenegro Airlines in either 2008 or 2009.
The Montenegrin carrier has faced sliding passenger numbers, handling under 600.000 passengers last year, although is reported to have had strong growth in January 2012. This summer the national airline will introduce flights to London from both Podgorica and Tivat and has announced plans to purchase another Embraer jet.
It will be the second time the government has attempted to privatise Montenegro Airlines. In 2010, it unsuccessfully tried to sell a 30% share in the airline. Although El Al Israel Airlines, Etihad Airways and Arkia Israel Airlines all purchased the tender documentation, none of them made an offer. The CEO of the airline, Zoran Djurišić, is firmly against the sale. Late last year he told the media, “The government knows my stance regarding the privatisation which is why I have been completely excluded from the process”. He added that privatising the airline will have long term negative effects on the country. Instead, Djurišić says the government should cover the airline’s losses and pressure Montenegro’s largest petroleum company, Jugopetrol, to reduce its unreasonably high costs.
Soon at Gatwick
Serbia’s Jat Airways has made changes to its upcoming London Gatwick service. Flights to London’s second busiest airport will be inaugurated on June 15 and will operate on a seasonal summer basis (to September 14) to cope with high passenger demand experienced during the summer months on the existing Belgrade - London Heathrow route. In addition to the two weekly flights to London Gatwick, Jat will also serve London Heathrow nine times per week over the summer. Passengers departing from the Serbian capital will be spoilt for choice as they will also have the option of using Wizz Air’s four weekly service to London’s Luton Airport.
A return ticket with taxes included from Belgrade to both London Gatwick and Heathrow will set passengers back 175 Euros. Flight details for the upcoming service can be viewed
here.
Meanwhile, Montenegro Airlines, which also recently announced its seasonal
service launch from Tivat to London Gatwick, has now announced it will launch flights from its hub Podgorica to the British capital as well. Services will operate once per week and will launch on March 30 with details available
here.
Montenegro Airlines back in London
Montenegro Airlines will launch services from Tivat to London during the 2012 summer season, as the airline looks to recover after underperforming in 2011. Flights from Tivat will be inaugurated on Sunday, March 25 and will operate every Wednesday and Sunday on a seasonal summer basis. The airline is hoping to attract British tourists on the route but also profit from the 2012 Olympic Games, being held in the British capital from July 27. This summer, all of the national carriers of the former Yugoslavia (with the exception of B&H Airlines) will be offering flights to either London Heathrow Airport or London Gatwick. Flight details for Montenegro Airlines’ new service can be viewed
here.
Until the start of the 2011/2012 winter season, Montenegro’s national carrier operated regular all year round flights to London from its hub in Podgorica. However, the service was cancelled after it reported major losses on the route. Although the Montenegrin carrier is yet to report precise passenger figures for 2011, it carried just under 600.000 according to its CEO, a decrease of 5% compared to 2010 when it welcomed 630.000 passengers onboard.
Meanwhile, Tivat Airport handled approximately 645.000 passengers in 2011, an increase of 20% compared to 2010. It managed to finish the year off well ahead of EX-YU capital city airports such as Sarajevo and Podgorica. On the other hand, Podgorica handled approximately 615.000 passengers, down 4% on 2010.
Tempers flare at Montenegro Airlines
Montenegro Airlines pilots have issued a public plea to the Government of Montenegro to save the embattled national carrier from “imminent collapse”. The airline’s pilots have requested an audience with the Montenegrin Prime Minister Igor Lukšić as “the company finds itself in a difficult financial state due to incompetent management”. Pilots say that they are just starting to receive their August salaries, meaning that they haven’t been paid for three full months of work. Some are also receiving lower salaries than outlined in their contracts. The Montenegrin judiciary has warned the airline against such actions.
Montenegro Airlines CEO, Zoran Djurišić, who has been at the helm of the company since its creation in 1994, hit back at the pilots saying that the airline’s financial woes are a result of the unstable economic climate across the globe. He adds that “a group of pilots have been creating a negative working environment within the airline for the past year and a half”. Djurišić claims that Montenegro Airlines is one of the most successful airlines in Europe and that its losses are less than those of its rivals Adria Airways, Croatia Airlines and Austrian. Meanwhile, a group of Montenegro Airlines’ most experienced pilots are staying loyal to their employer saying that they are proud to work for such an airline and are satisfied with their wages. On average, a pilot at Montenegro Airlines earns 4.500 Euros per month, according to the company.
Montenegro Airlines, which keeps most of its business operations a closely guarded secret, was forced to suspend flights to Priština and Skopje due to unpaid fees earlier in the year. The Montenegrin government has written off over 3 million Euros worth of the carrier’s debt and issued state guarantees for a 9.6 million Euro loan. It recently announced that it will restructure the flag carrier in order to return it to profitability. Montenegro Airlines said, several months ago, that it should carry 600.000 passengers by the end of 2011, a 5% decrease compared to last year.
Unlimited flights between United States and Montenegro made possible
The United States and Montenegro have signed an Open Skies air services agreement that will liberalise the two countries' bilateral aviation relationship. Representatives of the two governments inked the relevant documents on November 28 in Podgorica and on December 5 in Washington. The agreement allows the airlines from both countries to fly to, from and beyond the other’s territory, without restriction on how often carriers fly, the kind of aircraft they use and the prices they charge. State Department Deputy Spokesperson Mark Toner said at a daily press briefing recently, "This agreement will strengthen and expand our strong trade and tourism links to Montenegro, benefiting US and Montenegrin businesses and travellers by expanding opportunities for air services".
As a result of the Open Skies agreement, Montenegro Airlines, the only commercial carrier based in Montenegro has been granted unlimited flying rights to the United States. However, Montenegro Airlines does not have the aircraft, finances or network to support transatlantic flights at this moment. Unfortunately, the number of incoming tourists from the United States to Montenegro is still low. All of these factors suggest that there will be no flights between the Unites States and Montenegro anytime soon, although, this agreement has done away with any possible bureaucratic procedures if room for such flights opens in the future.
The latest attempt to set up flights between the United States and the former Yugoslavia failed in 2011 when a US tour operator suspended its planned services to Zagreb and Belgrade over the summer, an hour before the first passengers were supposed to board, as the designated airline was grounded by the Federal Aviation Administration. Priština Airport was the last to serve flights from the United States, several years ago from New York. In, August Macedonia and the United States signed the Open Skies agreement as well.
Financial boost for Montenegro Airlines
The Government of Montenegro is coming to the national carrier’s rescue but has decided not to privatise Montenegro Airlines. The government will restructure the airline before any talks of a possible future sale is on the agenda. The airline’s mounting debt owed to its hub airports Podgorica and Tivat will be indirectly written off. In return, the state owned Airports of Montenegro, which runs Podgorica and Tivat airports, will be given a certain amount of shares in the national carrier. Furthermore, the airports have been ordered to slash their taxes and fees but only to Montenegro Airlines. The flag carrier owes 7.5 million Euros in unpaid fees to its hubs.
Montenegro Airlines will be given 400.000 Euros from the state budget on a monthly basis to cover operational costs. The debt Montenegro Airlines owes to the Serbia and Montenegro Air Services Agency will be covered through compensation. The Montenegrin government will offer the Agency ownership over the three star Park Hotel in the town of Bijela on the coast. Earlier in the year the government wrote off a total of 3.2 million Euros of debt and gave state guarantees for a 9.6 million Euro loan.
In February, Montenegro Airlines was forced to suspend flights to Priština and Skopje due to unpaid fess. An attempt to sell a 30% share in the airline last year failed despite interest from other airlines. All interested parties wanted Podgorica and Tivat airports in the sale package. In 2010 Montenegro Airlines recorded a loss of 3.7 million Euros. It is keeping this year’s financial results a closely guarded secret. In 2012 the airline plans to use its recently obtained loan to buy a new aircraft, open new routes and get one of its grounded Fokkers F100 back in the air.
Winter changes
The 2011/2012 winter season begins tomorrow.
As has been previously reported, B&H Airlines will suspend flights to Amsterdam this winter. Compared to the 2010/2011 winter season the airline has terminated a total of six destinations. Since flights to Copenhagen will now operate via Banja Luka and all four weekly frequencies from Sarajevo to Zurich will also make a stop in Banja Luka, the second largest city in Bosnia and Herzegovina will see six weekly flights operated by B&H, which is an increase of one compared to last winter. The frequency for the airline’s Zurich service has decreased by one flight since last winter and will be served four times per week. Flights to Istanbul remain unchanged.
Croatia Airlines won’t be making too many changes to its winter line up of destinations and frequencies compared to last year. Flights from Zagreb to Istanbul, which were launched over the summer, will remain throughout the winter period while Priština will also see an extra weekly flight. Facing competition from easyJet, Croatia Airlines will decrease its Paris flights from daily last year to five per week. On the other hand, it will continue to operate to the French capital from Dubrovnik two times per week, which is a new addition. As has been the case in the past few years, the airline won’t operate flights from Rijeka and Osijek during the winter.
Montenegro Airlines will see frequency cuts across the board over the winter period. However, it should be noted that last winter the airline practically operated its 2010 summer season timetable. Flights from Podgorica to Belgrade, Frankfurt, Moscow, Rome and Zurich will all be decreased while flights to London suspended. However, the airline will continue to operate flights from Tivat to Moscow which were launched during the 2011 summer season.
By clicking on the links below, you can view the 2011/2012 winter season changes in more detail.
Montenegro Airlines cancels London flights and sees passenger decrease
The CEO of Montenegro Airlines, Zoran Djurišić, has announced that the carrier will handle some 600.000 passengers this year, declaring the result a major success in the region in spite of the turbulent economic climate. However, Montenegro Airlines’ passenger numbers are on the slide. The airline carried 630.000 passengers in 2010, thus recording an almost 5% slump this year. “We are not magicians and we can’t escape the fate of bigger European airlines. However, we have devoted all of our efforts so the crisis does not impact on our business”, Djurišić said. He added that the airline has carried some 5 million passengers in its seventeen year history and has significantly contributed to Montenegro’s tourism industry. Below you can review Montenegro Airlines’ end of year passenger results for the past several years.
Meanwhile, Montenegro Airlines will suspend flights to London Gatwick this winter due to poor loads. The airline announced its plans to drop the route earlier this year as part of its cost cutting measures. The last service will operate tomorrow. So far this year the airline has also terminated flights to Priština and Skopje.
The Government of Montenegro has announced that it plans to sell a 30% stake in the airline by the end of the year. Some claim that a direct deal with the Turkish government will be made regarding a strategic partnership with the Montenegrin carrier.
| Year | PAX |
|---|
| 2008 | 502.758 |
| 2009 | 527.000 |
| 2010 | 630.000 |
Corruption investigation against Montenegro Airlines widens
During last week, police in Montenegro seized documents from the national carrier’s head office in Podgorica in an ongoing corruption investigation. The seized documents relate to the way Montenegro Airlines has debited airport taxes since 1994 until 2009. Furthermore, police is checking whether a newly purchased company car was bought legally by the airline. It is not the first time that the carrier and its management have come under investigation for corruption. Montenegro Airlines’ management is also being investigated for the way it set up its planned Serbian subsidiary, Master Airways, in Niš. In addition, the company is being scrutinised for the lease of a Fokker F100 to the now defunct Albatros Airways from Albania several years ago. The latest investigation comes days after Montenegro Airlines’ CEO, Zoran Djurišić, slammed the government for attempting to privatise the airline.
“Montenegro Airlines has no secrets and all of the business decisions it makes are in accordance to regulations and the law”, the airline said in a press release late last evening. “Over the past week, the premises of Montenegro Airlines were visited by police under the orders of the State Prosecutor. The police were interested in specific activities that have taken place in the company concerning regular company business”, the airline says. However, much of the carrier’s business performance is unknown to the general public. Until this year, the public was unaware of the airline’s mounting losses nor has the airline revealed how many passengers it has carried. Montenegro Airlines has also kept quiet the news that it is no longer a member of the Association of European Airlines. Admitted into the group of over thirty carriers in January 2010, it has been suddenly dumped without any official explanation.
Last week, the company Airports of Montenegro accused its main customer for failing to forward airport taxes for Podgorica and Tivat airports (included in the ticket price). It says that, as a result, its business has lost 8.3 million Euros.
Government cheering for Turkish takeover
The Montenegrin government has announced that “Turkish Airlines is close to taking over Montenegro Airlines and the country’s airports”, national broadcaster RTCG reports. However, the government adds that it won’t sell the national carrier at any cost. If it decides that it is not the best time to privatise Montenegro Airlines, the government will offer Turkish Airlines certain privileges at either Podgorica or Tivat Airport, would initiate stronger cooperation between the flag carriers of both countries and would offer the Turks an opportunity to redevelop Berane Airport in the country’s north-east. This kind of approach will be made possible by the signing of an Intergovernmental Agreement which is being drafted at the moment.
Earlier in the year, the Government of Montenegro announced that it will sell a 30% share of Montenegro Airlines through a public tender by the end of the year after a failed attempt in 2010. This led to
fierce criticism from Montenegro Airlines CEO, Zoran Djurišić. “The national carrier is having financial problems but in reality every airline is except for Turkish Airlines which is why we want them as partners”, the Ministry of Transport said in a statement. The extent of Montenegro Airlines’ troubles are unknown to the general public. Problems began this year when the airline was forced to suspend several routes and the government wrote off multi million Euro debt. Recently, the company that runs both of Montenegro’s international airports said its business was being jeopardised at the hands of Montenegro Airlines’ unpaid debt to Podgorica and Tivat.
Montenegro Airlines against privatisation
The CEO of Montenegro Airlines, Zoran Djurišić, has launched a scathing attack against the government for attempting to privatise the national carrier. “The government knows my stance regarding the privatisation which is why I have been completely excluded from the process”, Djurišić said. He added that privatising the airline will have long term negative effects on the country. Instead, Djurišić says the government should cover the airline’s losses and pressure Montenegro’s largest petroleum company, Jugopetrol, to reduce its unreasonably high costs.
Djurišić’s claims mark the first big rift between him and the government with which he has been in good relations since setting up the national carrier back in 1994. Under the government’s proposal, Djurišić was recently re-elected as the company’s CEO for another four year term, which will see him serve at the top of Montenegro Airlines’ management for 21 years. Djurišić also said that potential ownership by an Israeli or Turkish company would have a negative impact on the country’s tourism industry. “This year we saved the tourism season by carrying almost 300.000 passengers within three months, we filled the state’s budget and thanks to us many other companies have profited, including the airports, Jugopetrol and hotels. With a foreign owner none of this would be required of the airline”, Montenegro Airlines’ CEO concluded.
Meanwhile, Airports of Montenegro, which runs both Podgorica and Tivat airports, accused Montenegro Airlines for not making good on its financial obligations. The company claims Montenegro Airlines owes over 8 million Euros to Podgorica and Tivat. More than half is on airport taxes. Airports of Montenegro says its business is being seriously affected by the national carrier. Montenegro Airlines also owes millions to the country’s air traffic control and Jugopetrol with media sources adding that no one really knows the extent of Montenegro Airlines’ losses or debt.
Last month, the Government of Montenegro said it would soon begin tender procedures to sell a 30% share in Montenegro Airlines after which the new owner would have the ability to take a majority stake in the carrier. A similar attempt last year failed despite interest from El Al Israel Airlines, Etihad Airways and Arkia Airlines.
Government confirms Turkish interest in Montenegro Airlines
The Government of Montenegro has confirmed that Turkish Airlines is interested in taking over the country’s national carrier as it heads towards a second privatisation attempt in two years. Officials in Podgorica are certain that, unlike last year, the airline will be sold this time around. According to the government, the strongest interest has been shown by Turkish Airlines. Officials from the airline have already visited Podgorica and discussed potential investment in the Montenegrin carrier. However, there is a catch. In return for buying Montenegro Airlines, Turkish expects to gain full control over Podgorica and Tivat airports. Earlier this year, the head of the Airports of Montenegro company said that selling hubs in Podgorica and Tivat would be a disastrous decision, adding that airports form an integral part of a country’s infrastructure system. The comments came back in January when the Turkish operator Limak announced its interest in taking over Montenegro’s airports.
In 2010, 30% of Montenegro Airlines shares were offered to potential partners with the possibility to increase the ownership stake a year later. Although three airlines (El Al Israel, Arkia and Etihad Airways) purchased the tender documentation, none of them put in an offer.
Turkish Airlines operates flights to every capital city in the former Yugoslavia. It owns 49% of B&H Airlines. Although long rumoured to be interested in taking over Jat Airways such a scenario did not materialise. Furthermore, Limak is the operator of Priština Airport while the Turkish TAV Holdings runs both Skopje and Ohrid. Turkish operators have also applied for the tender to build the new terminal at Zagreb Airport.
Montenegro Airlines reassures over safety
Montenegro Airlines has said that all of its aircraft are safe after 2 incidents occurred in just 10 days, assuring the public that the carrier is not cutting costs when it comes to safety and maintenance. The first incident occurred when it was discovered that a chartered flight from Podgorica to Cardiff, carrying the national football team of Montenegro, had an electronics failure onboard. The aircraft in question was a relatively new Embraer E195 jet. Another occurred only several days ago after a Frankfurt bound Fokker F100 was forced to turn back to Podgorica and declare an emergency landing due to a hydraulics problem.
Due to a media frenzy regarding the airline’s safety performance, Montenegro Airlines has explained that its aircraft perform over 20.000 hours of flying time per year and that such technical problems are standard. Although it admitted that the airline is experiencing economic hardship it assured the public that no cost cutting measures are being applied to its safety and maintenance procedures.
Montenegro Airlines had an unusual incident earlier this year when an eagle flew into the nose cone of one of its F100s as the jet was on final to land at Tivat Airport. The bird strike damaged the aircraft’s meteorological radar. In February this year, an engine on the airline’s E195 was damaged in Vienna due to careless handlers.
Montenegro Airlines sale to begin in September
The Government of Montenegro will make a second attempt at privatising its national carrier Montenegro Airlines. The tender will begin next month, according to the Montenegrin press. The government attempted to sell a 30% share of the national carrier last year. Although El Al Israel Airlines, Etihad Airways and Arkia Israel Airlines all purchased the tender documentation, none of them made an offer. The tender outlined that the company which purchased the 30% stake would have the opportunity to be a majority shareholder within 2 years. It is unknown whether the government will offer a bigger stake in the airline this time around. The Montenegrin Tender Commission began preparations for Montenegro’s sale this July.
Since the first failed sale attempt it has been revealed that Montenegro Airlines, a star performer amongst former Yugoslav national carriers, was making big financial losses in proportion to its size, which led it to terminate several routes. A few months ago the Government of Montenegro wrote off 3.2 million Euros worth of debt made by the national carrier. Montenegro Airlines says that a new tender won’t impact on its operations or plans to expand its fleet in the hope of cutting losses. The airline recorded a loss of 3.6 million Euros in 2010 which is expected to rise this year.
New Embraer jet for Montenegro Airlines
Montenegro Airlines will expand its fleet within the next few years and plans to position itself on new markets. Earlier this year the Montenegrin national airline revealed it would purchase new aircraft in an attempt to counter its financial woes. The airline’s Commercial Director, Vladimir Ristić, says that the airline will take delivery of a new Embraer jet in 2013, to complement its existing fleet of 3 Embraer E190s and 5 aging Fokker F100s. “Our negotiations are entering the final phase and we plan to put an order in soon”, Ristić said, referring to the new aircraft. Currently 7 out of the 8 aircraft are in use as one of the F100s has been grounded for some time.
The airline is also planning ahead for the Open Sky agreement with Europe, which will come into effect in 2 to 3 years. The agreement will allow foreign airlines to be granted licenses to operate to Montenegro more easily. Ristić emphasized Serbia and Russia as the airline’s two main markets but also added that Montenegro Airlines plans to expand. This summer the airline was not granted a license to operate charters from Belgrade to Palma de Mallorca and Greek holiday destinations. It also failed to secure a license from Swiss authorities to operate direct flights from Niš to Zurich. However, the airline is not giving up and plans to offer direct flights from Niš to other European cities other than Podgorica.
During this winter season Montenegro Airlines plans to wet lease one of its Fokkers to Belle Air, which is based in Tirana. Montenegro Airlines will operate on behalf of the Albanian airline with Montenegrin cabin crew, pilots and technicians taking care of the aircraft.
Government writes off debt
The Government of Montenegro has announced it will write off 3.2 million Euros of debt amassed by the national carrier between 2002 and 2006. The government said the cash injection will be treated as state aid. Earlier in the year it was revealed that Montenegro Airlines has significant financial problems and was forced to terminate flights to 2 destinations as a result. More recently, the operator of Montenegro’s two international airports said that the national carrier owes 6.2 million Euros to Podgorica and Tivat airports. The airline has already received 9.6 million Euros from the government this year (4.6 million for opening new destinations, 4 million for the purchase of new aircraft and the rest for the overhaul of a grounded Fokker F100).
The President of the Financial Board of the Montenegrin Parliament criticised the government’s action stating, “This is the government’s most beloved company and it will always come out and help it. This is bad news because 3 million Euros will be paid by someone else; by the citizens, unemployed, workers and other companies in need of aid”.
Zoran Djurišić, Montenegro Airlines’ CEO, was elected for another term at the helm of the national carrier by the Montenegrin government earlier last week. He has led the airline for the past 17 years.
Tomorrow, the 2012 Northern Hemisphere summer season begins. Following on from last week, when changes and additions were published for Croatia Airlines and Jat Airways, this week amendments for Adria Airways, B&H Airlines and Montenegro Airlines can be viewed.
