LATEST:

Wednesday, September 9, 2009

El Al dumps Montenegro plans

No interest for Montenegro Airlines
The Israeli flag carrier which was initially interested in the purchase of Montenegro Airlines has decided not to put forward a bid and has therefore backed away from the airline’s privatisation process. This has proved to be a big blow for the Montenegrin government which was hoping to sell the airline by the end of the year. The government has now announced that it will change the terms of the privatisation. The European Bank for Reconstruction and Development earlier this year also announced that it was interested in the purchase of the airline however it too is no longer interested in the purchase. Slovenia’s Adria Airways earlier also confirmed it was interested in purchasing Montenegro Airlines though no word about the possible purchase from Adria has been released ever since.

Montenegro Airlines is one of the rare European national carriers which is reporting stable passenger figures in spite of the global financial crisis. The airline is currently operating with a fleet of 7 aircraft (5 Fokker F100s and 2 Embraer E175s). The airline will receive a further 2 Embraers within the next 2 years.

Meanwhile, the CEO of Montenegro Airlines and the vice director of Belgrade Nikola Tesla Airport have signed a new 2 year agreement where Montenegro Airlines will have special handling costs at the airport (considerably lower than other airlines). Montenegro Airlines will operate 5 daily flights to Belgrade from Tivat and Podgorica this winter. Serbia is Montenegro Airlines’ most important and lucrative market bringing in a profit of 6 million Euros for the airline. Montenegro Airlines is now the more popular airline for travel between Serbia and Montenegro, taking over Jat Airways.

2 comments:

  1. Perhaps now is not the best time to sell. But if they are in a healthy situation pax/$$-wise then they're best to stay in Govt control for a little while longer

    ReplyDelete
  2. €6M profit over a period of...?

    ReplyDelete

Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The administrator deletes comments with a reason, thus reposting a deleted comment will lead to further action. Thank you for your cooperation.