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NewsMontenegro's aviation sector struggles with competition and infrastructure challenges

Montenegro’s aviation sector struggles with competition and infrastructure challenges

The winter IATA season has significantly reduced the number of flights from Podgorica and Tivat airports, leading passengers to turn to neighboring airports. Ryanair is only offering flights from Podgorica to London, while Wizzair maintains routes to Budapest, Milan, Dortmund and Memmingen.

National carrier Air Montenegro operates flights from Tivat to Baku, Belgrade, Brno, Istanbul, Izmir, Ljubljana and Prague, while Podgorica offers routes to Belgrade, Bratislava, Zurich, Copenhagen, Frankfurt, Istanbul, Ljubljana, Lyon, Munich, Nantes, Ostrava, Paris and Rome.

Intense regional competition

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Aviation analyst Alan Šćurić points out that Podgorica and Tivat airports are surrounded by major regional hubs like Tirana (projected to handle over 10 million passengers this year), Dubrovnik (3 million), Pristina (3.9 million) and Sarajevo, all of which create strong competition for Montenegro.

Šćurić highlights the difficulty of competing with these airports, noting that they invest heavily in infrastructure and new routes. Meanwhile, Podgorica struggles with outdated terminal facilities, designed for only 600 passengers per hour, though it often handles up to 1,000 passengers per hour, causing congestion.

Lack of investment in infrastructure

Despite significant growth in new routes and frequencies from surrounding airports, Montenegro has been slow to improve its own infrastructure. The country’s aviation authorities have yet to build the much-needed terminal expansion in Podgorica, which was planned two years ago.

Air Montenegro is also facing difficulties with the sustainability of its winter flights, as it seeks to balance profitability. Šćurić suggests that to remain competitive, the government must prioritize increasing capacity and expanding infrastructure rather than solely relying on subsidies for airlines.

Potential solutions

Šćurić suggests that the government should reconsider its approach to aviation by focusing on strategic investments in capacity, rather than subsidizing specific routes. He also points out that introducing Public Service Obligation (PSO) routes for winter flights to major European cities like Frankfurt, Paris and Rome could improve connectivity and attract more passengers during the off-season.

Regarding airport privatization, Šćurić sees the potential for rapid improvements in infrastructure if Montenegro opts for concession agreements, though he warns of potential risks if the terms are unfavorable. On the other hand, Roko Tolić, CEO of Airports of Montenegro, supports the idea, noting that it could bring the necessary resources for airport development.

Berane Airport criticism

The proposal to build an airport in Berane has been widely criticized. Šćurić calls it a “huge mistake,” as the area has a small population, and the airport would be too close to Podgorica’s airport to be viable. He believes it would be a waste of money with no significant passenger demand.

The loss of Montenegro Airlines’ dominance

Šćurić also criticizes the closure of Montenegro Airlines, noting that it was a major mistake as the airline had a stronger network and more frequent flights than Air Montenegro. He suggests that the company should have been restructured instead of shut down, as this move ultimately led to the loss of important partnerships and flight slots.

In conclusion, while Montenegro’s aviation sector faces significant challenges due to regional competition and a lack of investment in infrastructure, Šćurić believes the country must take decisive steps to enhance its connectivity and competitiveness. Without these changes, Montenegro risks falling further behind its regional counterparts.

Supported byMercosur Montenegro

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