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NewsMontenegro to cut airport fees and boost employee housing support in new...

Montenegro to cut airport fees and boost employee housing support in new agreement

The Ministry of Transport has reached a significant agreement with Airports of Montenegro to lower fees for airlines. This move aims to retain existing carriers and attract new low-cost airlines, as Montenegro works to improve its air connectivity and compete with neighboring countries amid challenges at the Podgorica and Tivat airports.

Roko Tolić, CEO of Airports of Montenegro, underscored the importance of these measures for the future of Montenegro’s tourism sector. Transport Minister Maja Vukićević highlighted the negative impact of previous fee increases, which led to the loss of crucial routes, including a reduction in services from the low-cost airline Ryanair.

Tolić explained that the fee reductions are intended to enhance the competitiveness of Montenegrin airports. This decision follows recommendations from the government and consultations with Minister Vukićević. The aim is to stimulate interest from airlines and improve connectivity at both Podgorica and Tivat airports.

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Minister Vukićević pointed out that the previous management’s decision to raise fees had a “very negative impact,” resulting in Ryanair maintaining only one route from Podgorica this winter and suspending other routes until next summer. She noted that the fee adjustments are necessary to restore competitiveness and prevent travelers from opting for neighboring airports.

Ryanair had previously criticized the fee increases at Montenegrin airports, contrasting them with European airports that have been reducing fees to boost traffic. The airline argued that such practices are at odds with trends observed across Europe, North Africa and the Middle East.

New policy for employee housing support

Additionally, the Board of Directors of Airports of Montenegro has approved a new policy to provide financial support for addressing housing needs and improving living conditions for employees. The policy, which aligns with the company’s statute and collective agreement, has received positive feedback from trade unions representing Podgorica and Tivat airports. It specifies that employees must have a minimum of five years of continuous service to qualify for this support.

Under the new policy, employees can receive up to €20,000 for housing support and up to €7,000 for improving living conditions. Management members are not eligible for this financial assistance. Jelena Maraš, Chairwoman of the Board of Directors, stated that the policy is the result of collaborative efforts with trade unions and is a step towards finalizing a new Collective Agreement. This agreement aims to further protect workers’ rights while reducing unnecessary costs for the company.

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