You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Montenegro to inject 155 mln euro in flag carrier's capital

Author Radomir Ralev
Montenegro to inject 155 mln euro in flag carrier's capital Author: Montenegro Airlines. Licence: All rights reserved.

PODGORICA (Montenegro), December 10 (SeeNews) – Montenegro's government plans to invest 155 million euro ($171.7 million) in the capital of flag carrier Montenegro Airlines in the next six years to back the company's development, it said.

The company will use the financing to cover past-due liabilities and acquire new aircraft worth 50 million euro, the government said in a statement on Monday.

The potential bankruptcy or liquidation of the company would lead to a series of cumulative adverse effects across the country's economy, including the loss of 33.7 million euro in paid installments for aircraft and slots at foreign airports. Montenegro Airlines generates revenues of about 70 million euro per year and has a major positive impact on the growth of Montenegro's economy, the government said.

Montenegro's flag carrier expects to handle 660,000 passengers in 2019, breaking last year's record of 645,000, it said last week. The company narrowed its loss to 1.97 million euro last year.

($ = 0.902993 euro)