Croatia Airlines (OU, Zagreb Franjo Tuđman) is interested in acquiring a stake in fellow ex-Yugoslav operator, Montenegro Airlines (Podgorica), local Montenegrin newspaper, Pobjeda, has reported. Podgorica put a minority shareholding in the carrier up for sale through an international tender in February this year.
According to EX-YU Aviation News, the announcement comes after representatives from both airlines held talks with the Montenegrin Minister for Transport and Maritime Affairs, Ivan Brajović, last week concerning their proposed enhanced cooperation agreement.
Under the deal, Croatia Airlines will codeshare on Montenegro Airlines' flights between Podgorica and Zagreb Franjo Tuđman beginning this winter. The flights will be rescheduled so as to offer better connection times for Croatia Airlines flights to Brussels National, Copenhagen Kastrup, Munich, and Amsterdam Schiphol.
Montenegro Airlines, which operates one E190, three E195s, and two Fokker 100s to other former Yugoslav republics as well as Germany, Russia, France, Italy, Austria, and Switzerland, has struggled in the wake of the crisis currently affecting Ukraine and the economic downturn in Russia - historically an important source of tourists. It registered EUR7.1million (USD7.52 million) in losses for its 2014 financial year, almost double that of 2013. Its overall cumulative debt is estimated to stand at EUR69million (USD85.8 million).
Despite its troubles, the carrier is set to sign a strategic cooperation agreement with Etihad Airways (EY, Abu Dhabi International) later this June entailing codesharing as well as access to the Emirati carrier's resources thereby allowing Montenegro Airlines to improve its fleet utilisation during the slow winter months.
