Adria eyes Montenegro

Montenegro Airlines Embraer 195

Slovenia’s Adria Airways is the latest company interested in the purchase of 30% of the shares in Montenegro Airlines. Representatives from Slovenia will be arriving in Podgorica within the next few weeks to hold talks with their Montenegrin counterpart. During this week Israel’s El Al held talks with Montenegro Airlines as they are interested in purchasing the carrier as well as the company “Airports of Montenegro” which manages Podgorica and Tivat airports. However, Montenegro Airlines CEO Zoran Đurišić has said that the European Bank for Reconstruction and Development (EBRD) is the most interested buyer and that talks with this 61-country fund organisation, based in London, have been the most successful so far. EBRD expressed its interest in Montenegro Airlines two years ago and has since held many talks with the company’s management. The Montenegro Airlines privatisation process is expected to be complete by the end of the year. Montenegro Airlines should have 5 aircraft in its fleet by 2010, which Đurišić says will satisfy the companies needs until 2020.

Founded in 1991, the EBRD uses the tools of investment to help build market economies and democracies in 27 countries from central Europe to central Asia. Its mission was to support the formerly communist countries in the process of establishing their private sectors. EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies to support privatisation, restructuring state-owned firms and improvement of municipal services.