EX-YU cities loose Budapest flights after Malev collapse

Following Malev’s demise on Friday, EX-YU cities have been left without direct air links to Hungary’s capital Budapest, which, amongst other things, attracted many transit passengers. None of the national carriers of the former Yugoslavia have attempted to introduce flights to Budapest and try to scoop stranded passengers. On Friday Lufthansa, easyJet, Wizz Air and Air Berlin were quick to react and increase frequencies while Ryanair announced over thirty new destinations to the Hungarian capital.

Malev had an extensive network in the former Yugoslavia operating flights to Belgrade, Priština, Podgorica, Sarajevo, Skopje and Zagreb. The Hungarian national carrier operated nine weekly flights to Belgrade. Recently, the airline had seen sliding passenger numbers on the route as more competition saw fewer transit passengers. The airline planed to reduce the service to one daily flight from the 2012 summer season. Malev operated two daily flights to Priština and thirteen weekly to Skopje, from which it saw numerous transit passengers. There were no plans to either increase or reduce flights over the coming summer. Sarajevo enjoyed daily flights and Podgorica six weekly while nearby Zagreb saw 18 weekly services between the two cities this winter. None of the former Yugoslav national carriers operate flights to the Hungarian capital and none have jumped at the opportunity to inaugurate services between the two cities since Malev’s demise. While the Hungarian low cost airline Wizz Air is based in Belgrade, it is unlikely it will be tempted to launch flights between the two cities as its aircraft are too big and inter Eastern European flights have proved unsuccessful for the airline in the past.

Officials at Budapest Airport, one of the biggest losers of Malev’s grounding, said it doubts the flights will ever be reinstated. "There are some estimates that over 20 or 23 routes of Malev will never be served by other airlines", airport spokesmen Mihaly Hardy said. It is believed that the Hungarian government will work to set up a new national carrier by the start of the 2012 summer season, which begins in over a month. It remains to be seen whether EX-YU destinations, on which Malev had a complete monopoly, will be resumed.

Flight delays and cancelations across EX-YU

UPDATED 21.00 CET

Snowstorms, fog and freezing weather have disrupted flight operations across the former Yugoslavia. Podgorica has been closed on and off for the past three days while Sarajevo Airport closed its doors this morning until 20.00 CET. In Belgrade meanwhile, the airport was evacuated when an anonymous call came that there was a bomb on board Air France's jet, which turned out to be false.

Both snow and fog are proving to be a problem at Sarajevo Airport. Sarajevo closed this morning with all departures cancelled for the day. Nearly all flights from Sarajevo were cancelled yesterday as well. Only early morning departures and B&H Airlines’ flights to Zurich and Istanbul were unaffected. Austrian was forced to divert its evening Sarajevo service to Belgrade. Operations resumed in the evening hours with Austrian, Jat and Croatia Airlines performing their flights as normal.

Belgrade Nikola Tesla Airport saw short delays throughout the day however there was some panic after an anonymous phone caller said there was a bomb onboard an Air France jet which was being prepared for its return flight to Paris. The airport was forced to evacuate and the flight cancelled although no bomb was found. The caller, a 62 year old from Bor, was later arrested. He said he was “only having some fun”. It was later disclosed that the man in question is mentally challenged.

In Montenegro, most flights to and from Podgorica Airport have been cancelled for the last three days due to heavy snowfall. There is now a big backlog of passengers on the Podgorica - Belgrade - Podgorica service with both Montenegro Airlines and Jat Airways cancelling most flights between the two cities. The two airlines attempted to operate flights to Tivat yesterday but before making their descent into the coastal city were forced to turn back to Belgrade. In order to clear the backlog of passengers Jat planned to operate an early morning service to the Montenegrin capital at 4.40 today but has cancelled the flight.

In Skopje, Priština and Ljubljana, flights have been operating normally (other than those to Montenegro) although all with an average forty minute delay. Out of all the airports in the former Yugoslav region, Zagreb was operating most smoothly with nearly all flights taking off from the airport yesterday, registering only minor delays. Split Airport has been closed due to snow and extreme winds reaching up to 180 kilometres per hour.

All of Eastern Europe is grappling with a Siberian freeze which is spreading westwards. Freezing conditions, which have claimed hundreds of lives across the continent, are set to persist for days to come.

Priština overtakes Ljubljana as third busiest airport in the former Yugoslavia

Priština has finished 2011 as the third busiest airport in the former Yugoslavia, for the first time since it opened its doors in 1965. The dethroned Ljubljana Jože Pučnik Airport fell into fourth place with Dubrovnik Airport hot on its heels. A total of six airports managed to handle more than one million passengers.

Ljubljana Airport was affected by Adria Airways’ crisis last year and its significant reduction of flights, which were felt during the months of August, November and December. Since January the airport has recorded declining or break even numbers compared to those from 2010, with the exception of April when the airport saw significant growth. As a result, Slovenia’s capital city airport welcomed just under 1.370.000 passengers, a decrease of 1.3% compared to 2010. It should be taken into account that Ljubljana was closed for almost an entire month in 2010. Since 2008, when Ljubljana saw record traffic by handling 1.673.050 passengers, its figures have steadily decreased each year. Ljubljana Airport expects lower traffic volumes and revenue in 2012. Still, the airport says that Adria’s decline should be substituted by foreign airlines and charter flights this year.

Priština Airport handled 1.422.302 passengers, an increase of almost 9%. The three busiest airlines operating out of Priština were Edelweiss, Adria Airways and Belle Air. The most popular destinations out of the city were Zurich, Vienna and Dusseldorf. As has previously been reported, Belgrade Nikola Tesla Airport is well ahead of its competition and in 2011 strengthened its position as the busiest airport in the former Yugoslavia. Other notable achievements were recorded by Zagreb, Dubrovnik, Skopje, Ohrid and Tivat. Joining Ljubljana as the only EX-YU capital city airport to see its figures decline in 2011 was Podgorica.

Below you can review the number of handled passengers by the ten busiest airports in the former Yugoslavia in 2011:

Airport	Passengers 2011	Passengers 2010	Change (%)
Belgrade	3.124.633	2.698.730	▲ 15.8
Zagreb	2.319.098	2.071.561	▲ 11.9
Priština	1.422.302	1.305.532	▲ 8.9
Ljubljana	1.370.000	1.388.651	▼ 1.3
Dubrovnik	1.349.501	1.270.062	▲ 6.3
Split	1.300.381	1.219.741	▲ 8.1
Skopje	759.928	681.080	▲ 11.6
Tivat	647.169	542.000	▲ 19.4
Podgorica	611.666	651.478	▼ 6.1
Sarajevo	599.996	563.266	▲ 6.5

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.

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.

No Ryanair flights to Montenegro until 2013

Europe’s largest low cost airline, Ryanair, won’t be commencing flights to Montenegro before 2013. Originally, the airline was planned to inaugurate flights to Podgorica this winter season but negotiations between Ryanair and the Montenegrin government broke down after it requested for the no frills airline carry 100.000 passengers out of Podgorica in one year and a further 50.000 passengers during the low season, from October until May. Petar Ivanović, the head of the Agency for the Promotion of Foreign Investments in Montenegro, said recently that Ryanair won’t start flights to the country next year either because the government has missed its opportunity to attract the carrier. He outlined that Ryanair has already compiled a list of destinations it will launch in 2013 and neither Podgorica nor Tivat is on it.

Ryanair flights to Montenegro would not only provide inexpensive travel but also allow for passenger growth at Montenegro’s airports. In the first ten months of the year Podgorica Airport handled 528.577 passengers while rival Tivat welcomed 624.009 passengers. Tivat has seen significant passenger growth, already surpassing the 2010 end of year result when it handled 541.386 passengers.

Currently, no low cost airline operates flights to Montenegro, with the exception of the semi low cost Air Berlin which maintains seasonal summer flights from Nuremberg to Tivat. It is estimated that many passengers looking for inexpensive travel to and from Montenegro are turning to Dubrovnik in Croatia instead.

Airports of Montenegro helps out family and friends

The CEO of Airport’s of Montenegro, which runs both Podgorica and Tivat airports, Milovan Djuričković, has employed half of his family and fellow party members at the airport in another show of corruption and political nepotism in the aviation industry in the EX-YU region.

Djuričković has employed his son to the position of vice Head of Security and his daughter’s husband at the airport’s Finance Department. Another three of the CEO’s cousins have also been employed at the airport since he took over at the helm of the company, one of which is the head of the Technical Division. Furthermore, Djuričković has extended a warm hand to fellow members of the governing Social Democratic Party of Montenegro. Ivana Brajović, wife of the Minister of the Interior, Dragan Brajović, recently found employment at Podgorica Airport while Hazera Rastoder, wife of Deputy Speaker of Parliament, has been awarded with a position at the airport’s Archives Department. Hazera previously worked at a newspaper stand. Over the 2011 summer season, thirty out of the total seventy seasonal workers at Podgorica Airport were members and activists of the capital city branch of the Social Democratic Party. The same party is in charge of the Ministry of Transport and Maritime Affairs.

Djuričković has not found the latest revelations as worthy of a comment. The CEO of Airport’s of Montenegro recently spoke out against attempts to privatise the company. The Montenegrin daily “Dan” considers that Djuričković has already completed the privatisation himself by employing family and party members. By the end of October, Montenegro’s two airports handled a combined total of 1.152.586 passengers, an increase of 7.2% compared to the same period last year.

Major investments planned for airports in Tivat and Podgorica

The Government of Montenegro has proposed the construction of a new airport in Tivat to replace the current one as it is becoming too overcrowded and has long been labelled a risk to the local ecosystem. The proposed site of the new airport is south west of the site. The first phase of the project, according to the new master plan, is projected to be completed by 2017. The cost of the first phase of the project will amount to 22.6 million Euros, while the second and final phase, which would be completed by 2030, would add an extra 76 million Euros to the price tag. The European Investment Bank would provide part of the finances needed while the Montenegrin government has proposed for the rest of the project to be financed through a Public Private Partnership, a technique being used by Zagreb Airport for the construction of its new terminal. During the next three years, Airports of Montenegro, which runs Tivat, expects for passenger number to double at the airport but projects stagnation beyond 2015.

Meanwhile, Podgorica Airport has also been earmarked for major investments. It is planned for the airport to expand its runway, terminal building and apron by 2030. Until 2015 the airport should get 8 new parking spaces for both smaller and middle range aircraft. In the next twenty years it is expected that passenger numbers at Podgorica Airport will more than double.

None of the abovementioned investments have been approved by the government yet but the Ministry of Transport, Sea and Infrastructure believes the master plan is realistic.

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.

B&H Airlines • Croatia Airlines • Montenegro Airlines

No Ryanair flights to Podgorica this winter

Ryanair won’t be commencing flights to Montenegro this winter, despite earlier announcement from the government that the no frills airline would do so. It is believed the Government of Montenegro and Ryanair couldn’t find common ground on the strict terms laid out to the low cost airline. Ryanair was expected to commence flights to Podgorica at the start of the 2011/12 winter season and was obligated to carry 100.000 passengers out of Podgorica in one year and carry 50.000 passengers during the low season, from October until May. Furthermore, the airline was required to fly to and from Podgorica throughout the year, rather than during the high season only, so as not to receive special treatment over the national carrier Montenegro Airlines.

The two sides negotiated for the airline to operate flights to Podgorica out of Glasgow Prestwick Airport and London Stansted. The Montenegrin government is now hoping to sell Montenegro Airlines by the end of the year and then grant licenses to low cost airlines to operate flights to both Podgorica and Tivat which would in turn boost tourism numbers.

Meanwhile, Zadar Airport in Croatia, which has flourished since Ryanair introduced flights to the city, is expected to get a new direct service from Barcelona next year as Ryanair negotiates with airport officials. The service would accompany the airline’s existing seasonal summer flights from Charleroi, Dublin, Hahn, London, Moss, Stockholm and Weeze. The low cost airline is also expected to commence flights to the Slovenian capital next summer from Dusseldorf and Dublin.

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.

Ryanair soon at Podgorica Airport

According to the Montenegrin Government, Europe’s largest low cost airline is finalising its plans to commence flights to Podgorica. The Montenegrin Government has been actively involved in talks with Ryanair in order for it to commence flights. While the services are to be subsidised (to an undisclosed amount), the government has laid out strict terms. The airline will be obligated to carry 100.000 passengers out of Podgorica in 1 year and carry 50.000 passengers during the low season, from October until May. The national carrier, Montenegro Airlines has lobbied for low cost airlines, starting up flights to the country, to operate all year round services rather than summer only flights. Their wish will be granted as Ryanair will be obliged to operate for a full year.

Ryanair and the government are currently negotiating the cities from which Ryanair will operate to Podgorica. Suggested earlier in the year are London Stansted and Glasgow’s Prestwick Airport. An official from the Montenegrin Government said, “We are currently in the process of agreeing on the first destinations and at this time we can not disclose those cities”.

However, some are sceptical that Ryanair will stay in Montenegro for too long. This is because flights will be operated to Podgorica, rather than Tivat on the Montenegrin coast. Furthermore, flights will begin during the low winter season.

In the EX-YU region, Ryanair currently only operates to Croatia. With an agreement for flights to Montenegro on the horizon, the low cost airline is also entering its final negotiations to commence flights to Ljubljana. Sporadic meetings are also taking place with the management of Tuzla Airport in Bosnia and Herzegovina.

Ryanair to spread its wings to Montenegro

Ryanair is likely to begin flights to Podgorica in September as talks between Europe’s biggest no frills airline and the Montenegrin government continue. Ryanair is interested in commencing flights from Glasgow’s Prestwick Airport and London Stansted to the Montenegrin capital. In return for operating an all year round service to Montenegro, Podgorica Airport will finance the airline’s marketing campaign and some handling fees will be slashed. Montenegro Airlines, based in Podgorica, said that low cost airlines should fly to Montenegro only if they offer flights during the low winter season as well.

With a contract between the government and Ryanair in the works, the airline will be obligated to carry 100.000 passengers out of Podgorica in 1 year and carry 50.000 passengers during the low season, from October until May, local media reports.

Ryanair offers many flights out of Croatia but does not serve any other EX-YU nation. Many Montenegrins and tourists choose to fly to nearby Dubrovnik in Croatia with low cost airlines and then find alternative transport to Montenegro. Montenegro Airlines does not operate flights to Glasgow although it serves London Gatwick Airport. Earlier, the Montenegrin national carrier said it would suspend flights to London this year due to low interest.

Montenegro Airlines dumps new routes

Montenegro Airlines has suspended services to Milan and Brussels which it launched just over a month ago. The service to Milan was inaugurated on April 8 with 3 weekly flights while services to Brussels launched on April 15 and saw the same number of frequencies. Both services operated out of Podgorica, however, the airline failed to attract any interest. The Montenegrin national carrier announced that as part of its cost cutting measures it was bound to cancel the two new routes. It has also been announced that the airline will suspend its flights to London Gatwick, although services to the British capital remain in the airline’s timetable for now.

Montenegro Airlines now plans to redirect its aircraft to Belgrade. It will add an additional 2 daily frequencies to the city, one from Podgorica and one from Tivat after reducing its services to the Serbian capital for the summer season by 15 flights when compared to the same period last year. The additional flights will commence if an agreement is reached with Belgrade Airport.

Montenegro Airlines is latest amongst the former EX-YU carriers to trim its destination network in the past few weeks. Recently B&H Airlines suspended flights to Frankfurt and Vienna while Jat dumped its flights to Trieste.

Low cost competition for Montenegro Airlines

Government protectionism over Montenegro Airlines is expected to end soon as it announces it will no longer pose obstacles to other carriers interested in establishing flights to the country. Until now, all airlines applying for a license would first have to get the tick of approval from Montenegro Airlines before receiving clearances from the country’s civil aviation body to operate to either Tivat or Podgorica. The practice is said to be hindering the country’s expanding tourism industry, which could benefit from numerous seasonal low cost flights as is the case in seaside cities across Croatia. The move will come as a slap to the Montenegrin national carrier which is in the process of taking out a 9.6 million Euro loan to cover its losses and is hoping airports in Montenegro and Belgrade will write off its unpaid debt. The airline is also struggling to pay handling fees at other airports such as Frankfurt and Vienna and will be slashing employee pay by 20%.

The Montenegrin government is continuing negotiations with low cost airlines Ryanair and easyJet. With generous incentives, Ryanair is keen on starting flights to both Podgorica and Tivat from the United Kingdom, namely Glasgow. easyJet on the other hand is considering commencing services to the country in the summer of 2012. The relaxed protectionist policy would also encourage other low cost airlines, the government believes. The Ambassador of the United Kingdom to Montenegro, Catherine Knight-Sands, said that the introduction of low cost flights between her country and Montenegro would be of great importance to the further advancement in relations between the two.

Despite being a country which heavily relies on tourism, an industry significantly propped up by low cost flights, not a single no frills airline operates to Montenegro. This summer, only Air Berlin will fly the flag for low cost airlines in Montenegro, although most consider Germany’s second largest airline to be outside of the no frills category due to its pricing.

Soon in Podgorica and Tivat

The Montenegrin Minister for Sustainable Development and Tourism, Predrag Sekulić, has announced that Ryanair is prepared to begin services to both Podgorica and Tivat this September. Besides Ryanair, the Montenegrin Government is negotiating with both easyJet and Wizz Air. However, only Ryanair is prepared to begin services this year. On the other hand, easyJet and Wizz Air are also interested in commencing flights to Montenegro but only from 2012. Sekulić told the Antena M radio station, “They [Ryanair] would initially operate flights from Great Britain, from London and Glasgow, to both Podgorica and Tivat. Prices will be in line with airline policy”.

The new low cost arrivals will prove problematic for the debt ridden Montenegro Airlines which has said that talks between the government and low cost airlines are unjustified. Montenegro Airlines’ CEO has previously stated that low cost airlines will operate during the summer season and take passengers away from Montenegro Airlines on routes the carrier has nurtured throughout the year.

This summer, Montenegro Airlines operates 3 flights per week from Podgorica to London Gatwick Airport. On the other hand, Ryanair has bases at both London Luton and London Stansted, with the latter being the largest base in its network.