Montenegro Airlines privatisation: 3 companies interested

Representatives of the Montenegrin national airline have announced that a total of 3 companies are interested in its purchase, one of which is the European Bank of Reconstruction and Development (EBRD). “Talks with EBRD have been going well” says a Montenegro Airlines official. American consulting group SH&E have been chosen to assist Montenegro Airlines with its analysis of interested airlines. Last Friday the airline’s board agreed that 30% of Montenegro Airlines shares should be sold. The airline has not revealed details on the other two companies interested in its purchase. A board of advisers have been selected which will monitor the progress of the airline’s privatisation.

Montenegro Airlines has been flying for 14 years. It has 6 aircraft in its fleet (one of which is leased to another airline). It recently decreased the age of its fleet by introducing a brand new Embraer 195 jet. A second is also on order. The airline operates to 12 destinations, recently opening services to London and Milan. The airline’s most negative aspect which may divert potential buyers is a corruption scandal involving the airlines CEO, its short lived sister airline Master Airways and an Albanian carrier. Furthermore Montenegro Airlines still has a case against it by passengers of a 2005 January flight from Belgrade when Montenegro Airlines was the only airline not to cancel its flight to a snow covered Podgorica thus landing on a frozen runway in the process experiencing a nose collapse. Some passengers were injured.