The Montenegrin government has proposed recapitalising the national carrier Montenegro Airlines (Podgorica) by investing EUR155 million euros (USD172 million) over the next six years, the national broadcaster RTCG reported on December 9. The sum is designed to cover the state-owned carrier's outstanding debts as well as investment in further development.

The cabinet said in a statement after its session on the matter that the amount would include an allocation of up to EUR50 million (USD55.4 million) for the purchase of new aircraft.

“At today's sitting, chaired by Prime Minister Duško Marković, the government adopted a proposal for the Law on Investing in the Consolidation and Development of the Montenegro Airlines Podgorica Air Transport Company by Creating the Basic Preconditions for the Market Operations of the Montenegrin national airline,” the statement declared, adding that the bill had been submitted for a shortened parliamentary procedure.

The government pressed parliament to debate the legislation urgently, arguing that the carrier must repay its debts and begin new investments. In April, the government wrote off EUR4 million (USD4.43 million) in debt repayments, according to local media reports.

The statement pointed out that bankruptcy at Montenegro Airlines would have a negative impact on the Montenegrin economy, as it would be a setback for the country's booming tourism industry and would cost an additional EUR33.7 million (USD37.35 million) already paid in instalments for aircraft.

Marković told RTCG in early November that the airline's debts amounted to over EUR80 million (USD89 million), which had put off several potential investors, but he pledged that it would not be shut down, its debt issues would be resolved, and a strategic privatisation partner found.

The airline currently operates nine routes from two airports in Montenegro, Podgorica and Tivat, with a fleet of three E195s (average age 10.5 years) and two Fokker 100s (average age 28.8 years), one of the Fokker 100s having been permanently retired, according to the ch-aviation fleets and ch-aviation capacities modules. It aims to sell both Fokker Aircraft and add one more E195 before the Summer 2020 season.