Montenegro Airlines to get €133 million in coronavirus aid in 2020

The Montenegrin government has earmarked 133 million euros for its national carrier this year, to help cover the losses caused by the coronavirus pandemic. On July 21, Montenegro Airlines was given a 10.4 million euro cash injection in order to secure the company’s short-term liquidity, while a further 25 million euros was forwarded to the airline on August 25. Late last year, the Montenegrin government committed itself to providing 150 million euros to its national carrier over a six-year period. Initially, 66 million was to be given to Montenegro Airlines this year. However, in its amendments to the state budget in July, the government earmarked a total of 133 million euros for the carrier this year alone due to the coronavirus pandemic.

Montenegro Airlines, which operates a fleet of just four aircraft and relies on the busy summer tourist season to bolster in finances, saw its revenue decline 80% during the first seven months of the year compared to 2019. Whereas the airline saw revenues of thirty million euros during the January – July period in 2019, the figure fell to just six million in 2020. The carrier’s CEO, Vlastimir Ristić, said last week the carrier is facing the biggest crisis since its foundation. “We have lost the most important months of the year, almost the entire summer season. This on its own says a lot about the position we are in. At this point, it is difficult to predict our results for the rest of the year, and it would be demoralising for us to do so”, Mr Ristić said. He added, “We are still waiting for some good news, such as the complete lifting of travel restrictions to Serbia and the reopening of the Russian market. The sooner these two happen, the better it is for us and we will do our utmost to wisely use this opportunity”.

According to the company’s CEO, Montenegro Airlines saw its peak summer passenger numbers and load factors amount to winter volumes. “Montenegro Airlines will need help from its founders to overcome the consequences of the crisis. However, it is up to us to do a few things first. We need to show in this present time that we are up to the task and have the capacity to overcome these issues, as well as convince our founder that the company is well managed. Montenegro requires an organised and responsible national carrier in the long-term”, Mr Ristić noted. Montenegro Airlines registered a net loss of 7.96 million euros in 2019 compared to a loss of two million the year before.

EX-YU Aviation News

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