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Montenegro to invest 20 mln euro in flag carrier's restructuring

Author Radomir Ralev
Montenegro to invest 20 mln euro in flag carrier's restructuring Author: Montenegro Airlines. Licence: All rights reserved.

PODGORICA (Montenegro), July 1 (SeeNews) - Montenegro plans to invest 20 million euro ($22.6 million) in a project for the restructuring of flag carrier Montenegro Airlines, according to the government's strategy for the development of the transport sector until 2035 .

The restructuring process will be launched this year and may involve privatisation to ensure investments in the company and improve its services, the government said in a press release following the adoption of the strategic development plan on Friday.

"The restructuring of Montenegro Airlines is necessary as the company has financial losses and a high level of indebtedness, therefore the possibility for concession contracts and participation of the private sector should be considered," the documents reads.

Montenegro Airlines narrowed its loss to 1.97 million euro ($2.2 million) last year, as the number of its passengers rose to record-high 645,000, the flag carrier's executive director Zivko Banjevic said in May.

The government also intends to invest 1.0 million euro in the preparation of a procedure for awarding a concession contract for the operation of the country's two international airports, in Tivat and Podgorica, the document shows.

The strategic development plan aims to increase the number of passengers at local airports by 40% until 2027 and by 70% until 2035 from 1.9 million in 2018. 

In April, the president of the European Bank for Reconstruction and Development Suma Chakrabarti said the bank is ready to consider providing financing to the future concessionaire of Montenegro's two international airports currently managed by state-owned company Aerodromi Crne Gore.

($ = 0.883132 euro)