The government of Montenegro has rejected a plan by Montenegro Airlines (Podgorica) to reschedule its tax burden, saying the airline is a "beneficiary of state aid" and thus not eligible to reprogram its debt. Montenegro Airlines appears at the top of the Tax Administration's "black list" of biggest tax debtors for taxes and contributions, with a total debt to the state of EUR15,382,911.23 (USD17.2 million).
Following the Tax Authority's announcement, Montenegro Airlines issued a statement saying that it was working with the relevant ministries on a plan to turn the company around.
"The strategy will include a cross-section of the current situation, in terms of debts and receivables, market position, personnel structure, and offer several scenarios for the future performance of the company," the statement says.
Montenegro Airlines posted a net loss of EUR11.5 million (USD12.85 million) in 2016 but remains optimistic for 2017. Its statement says that 1Q17 results improve on the same period last year by EUR1.1 million (USD1.29 million), and is confident the positive trend will continue.
"When these results are added to the fact that Montenegro Airlines realizes over EUR60 million turnover annually to carry about 600,000 passengers, that employs top flight and engineering personnel to a total of over 400 employees, it is one of the most complex technological systems in the country, and the market position that has been built over two decades, including slots at many European airports in more historical terms, it is easy to conclude that the importance of the company in Montenegro can not be reduced to the question of debts, although it is also of great importance and it is the focus of activities of the company and the aforementioned ministries," the statement added.
A bid by the government to privatise the troubled carrier earlier this year was scuppered when no investors came forward. Despite its problems, Montenegro Airlines claims that business will continue as normal.
"Montenegro Airlines assures the public, its passengers and partners that the company is engaged in stable operations and all its activities are carried out regularly."
