As part of Montenegro's bloc-accession process, the European Commission (EC) has begun looking into state financial aid given to Montenegro Airlines (Podgorica).

Quoting local news sources, EX-YU Aviation News says Brussels is paying particular attention to 'several million Euros worth' of state aid given to the airline in past years. Aside from EUR3.6 million in annual cash disbursements, Montenegro Airlines has also benefited from partial debt write-offs all of which will be subject to scrutiny.

The announcement, made on January 22, came a day after the national carrier requested EUR2.2 million (USD2.4 million) in additional financing from Podgorica to cover fuel costs as well as E195 lease payments owed to Brazil's BNDES bank. Furthermore, it requested its restructuring process be extended into 2016.

This year alone, the loss-making airline's fiduciary responsibilities include loan repayments of EUR3.5 million (USD4.7 million), leasing dues of EUR2.8 million (USD3.8 million) and taxes of EUR11.4 million (USD12.54 million).

But, despite its poor track-record of sustainability, CEO Daliborka Pejović has expressed faith in Montenegro Airlines' restructuring plan which, she says, has helped bolster creditors' confidence. So far, the airline has managed to cut costs and optimize its operations all the while meeting its financial obligations she added.

Montenegro Airlines last year signed a Memorandum of Understanding (MOU) with Etihad Airways (EY, Abu Dhabi International) concerning a proposed strategic cooperation agreement. Under the terms of the deal, the Emirati carrier is to help streamline Montenegro Airlines' corporate hierarchy and its fleet operations thus producing a more efficiently run, profitable organization. The Emiratis will also assist in developing synergies between its equity partners and Montenegro Airlines.

Montenegro Airlines currently operates one EMB-190, three E195s, and two Fokker 100s on scheduled passenger flights to Germany, Denmark, Slovenia, Russia, Italy, France, Switzerland, Austria, Serbia, and the United Kingdom.