Montenegro Airlines

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Activities towards the realization of the financial consolidation plan and the basic directions of development of Montenegro Airlines

March 05, 2020

The Board of Directors of Montenegro Airlines, at it's 9th regular meeting held on March 03,2020, discussed the activities of executive management regarding the implementation of the Financial Consolidation Plan and the basis for further directions of development of Montenegro Airlines, and noted that since the beginning of 2020 significant activities have been initiated with the aim of stronger market positioning of the company, as well as financial and personnel consolidation, and achieved better business results than in the previous year:

Within the first two months of 2020, Montenegro Airlines carried over 55 000 passengers or 1,3% more and achieved a better business result for EUR 120 000 compared to the same period last year, with 2% better occupancy. As a reminder, last year was a record year in more than 25 years of Montenegro Airlines business.

Deadlines have been set for the development of an innovative commercial strategy of the company, which should define a clear market profile of the company in the future, and the measures that need to be taken in that direction. Activities concerning the short and long term procurement of aircraft are ongoing.

A decision made to abolish representative offices in Moscow, Paris, Vienna, Frankfurt and London and reduce the number of employees by up to 50% in the Belgrade office. The decision was made in accordance with new trends in the aviation business, characterized by a high degree of digitalization in the business, and thus a reduced need for the physical presence of representatives in target markets, and will be implemented by the end of the summer season.

Draft of the Rulebook on Employee Benefits in Montenegro Airlines was adopted, which treats payroll optimization in accordance with the Labor Law, other Legal regulations and the Financial Consolidation Plan. There is an ongoing process of dialogue with trade union representatives regarding the implementation of the Rulebook, which is expected to be implemented soon.  

A maximum of 30 days has been defined for the preparation of the new Rulebook on Internal Organization, Systematization and Job descriptions , which should enable additional optimization of the number of employees. Also, temporary contracts will not be renewed after expiration, except in the case of licensed and scarce staff.

It was concluded that the new situation with the COVID- 19 (Corona) virus poses a significant threat to successful business in the coming period. The company's operational and commercial services pay the utmost attention to this problem, primarily to protect travelers and staff from the virus itself, but also to protect the company’s operations from the effects caused by the spread of the virus on the market.

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