Executive Director of Montenegro Airlines (Podgorica), Živko Banjević, has said that the airline will focus on a turnaround plan rather than consider bankruptcy, despite facing debts of EUR37.2 million (USD44.6 million). Speaking with the Montenegrin News Agency, Banjević said he has plans for fleet renewal and network expansion, and is also interested in finding a strategic partner.
"We plan to increase frequencies towards existing destinations, launch two new regular services to the German market, and open new charter destinations," Banjević said.
Montenegro Airlines will adjust its fleet make-up – which currently consists of three E195s and two Fokker 100s – by leasing in higher capacity aircraft of more than 140 seats. A limited supply of spare parts has seen more than half of the fleet grounded earlier this year, a situation which has now been rectified but affected operational performance before.
On the income side, the national carrier will introduce a new sales strategy to make ticket pricing more competitive, in order to respond to the growing threat of low-cost airlines, and will implement a new revenue management software.
In terms of MA's 450 employees, Banjević said that their number will be 'optimised', while external offices may also be closed down.
"Since January, we have been intensively working to reduce all other categories of costs that can be affected," Banjević said. "We are considering the cost-effectiveness of maintaining the remaining representative offices of the company outside of Montenegro, on which basis we will quickly make a decision on possible closures."
