Executive director of "Air Montenegro" for "Vijesti": Throw politics off the plane

The new executive director of the national airline "Air Montenegro" Marc Anjour in an interview with "Vijesta" he announced that one of the first moves after arriving at that position is the development of a strategy for the development of the national airline company for a period of 10 years, the goal of which will be to occupy a significant position on the market, achieve good financial and physical indicators, profitability, economic profitability and commercial viability in the airline business.

"We will be dominantly guided by national interests in the direction of the global connection of Montenegro with the largest possible network of destinations to which we plan to establish air traffic, which are important for the state, the tourist and complementary economy, strategic partners, the citizens of Montenegro and our clients - passengers", pointed out Anžur.

He emphasized that the financial reports show that "Air Montenegro" operates stably, that it is financially sustainable, as well as that the current state of capacity sales, flight occupancy and the average sales tariff confirm the optimism that this will be a record year in business and that the plan of over half million transported passengers to be achieved, which is over 100.000 more passengers compared to the previous year.

Anžur confirmed that in Ljubljana, before the announcement of the competition, he met with the members of the board of directors of "Air Montengro", who presented him with the current situation in the company and development plans, and that this meeting motivated him to apply for the competition for executive director.

"I believe that my contribution to the improvement of the company's work will be good financial and physical indicators, expanding the network of destinations, retaining current users of our services and expanding the base of new ones," said Anžur.

He did not reveal the conditions under which he accepted to be the executive director, but he claims that it is much more important that he does his job in an extremely professional and professional manner, and that his previous experience and professional references recommend him for the position.

You have just assumed the position of executive director of "Air Montenegro", have you had the opportunity to take a look at the financial and technical indicators of the company? How do you rate them?

During the previous recent period, since I assumed the position of executive director of the company "To Montenegro", i.e. the national air carrier "Air Montenegro", I can state that traffic is carried out in accordance with all international standards, aircraft are maintained in accordance with all procedures based on regulations of the Civil Aviation Agency of Montenegro and EASA (European Aviation Safety Agency). Based on the insight so far, I can say that the human capacities and organization of the company are characterized by professionalism and availability with sufficient resources to ensure safe, secure, comfortable flights and to the maximum extent possible compliance with flight rules.

The company operates stably based on periodic financial reports and monitoring of cash flows, technical condition of the aircraft, satisfactory current liquidity, booking status and capacity occupancy. The company is financially viable, the capitalization is satisfactory, and the current physical and financial indicators for the period from January 1 to June 18 of this year are better than the previous year. Since its establishment, in the previous two-year period, i.e. from June 10, 2021 to the beginning of June 2023, the national airline has made over 7.770 flights, transported almost 634.000 passengers with an average passenger cabin occupancy of 66%. Total revenues from tariffs in the amount of 54 million euros were realized.

What are some of the first moves you plan to make as CEO?

After a detailed introduction to the market, additional information on the current organizational and technical structure, human and other resources and other relevant facts, the development of the company's long-term development strategy for the next ten-year period follows. The strategy will include, among other things, so-called "self standing" operations, with the aim of taking a significant position on the market, achieving good financial and physical indicators, profitability, economic profitability and commercial viability in the aviation business. We will be dominantly guided by national interests in the direction of the global connection of Montenegro with the largest possible network of destinations to which we plan to establish air traffic, and which are important for the state, the tourist and complementary economy, strategic partners, the citizens of Montenegro and of course for our clients - passengers. Also, the state tourism policy to make Montenegro a year-round, not a seasonal, tourist destination supports the strategy that we will propose. Bearing in mind that the participation of tourism in the GDP is about 25%, we are sure that the action plan, which will be an integral part of the strategy, and its implementation will bring multiple economic benefits to the state, economy and citizens. It seems impossible to develop tourism as a strategic economic branch without relying on a strong and stable national airline.

What business results has the company achieved since the beginning of this year and what results do you expect at the end of the year?

From January 1 to June 18, 2023, "Air Montenegro" operated nearly 2000 flights carrying almost 160.000 passengers with a load factor of 64,41%. Revenues for the period January - June of the current year are 101% higher than in 2022. The current state of capacity sales, flight occupancy and the average sales tariff confirm the optimism that this will be a record year in the operations of the national airline and that the plan of over half a million transported passengers will be achieved, which is over 100.000 more passengers compared to the previous year. Also, we expect over 51 million euros in revenue without airport taxes in 2023.

How many destinations and which ones will Air Montenegro fly to during the summer season, and which ones do you plan to keep during the winter? Why doesn't the company fly from Tivat to Western Europe in winter?

Regular traffic is carried out to 14 destinations, flights to all destinations from the previous year have continued. "Air Montenegro" during this year traffic on regular airlines to Belgrade, Ljubljana, Banja Luka, Frankfurt, Zurich, Paris, Lyon, Nantes, Copenhagen, Prague, Istanbul, which it performed in the previous year and for the first time to Bratislava , Brno and soon towards Sarajevo. In addition to new charter flights to the Baltic countries, which operate from Tivat airport to Riga, Vilnius and Tallinn, we have new charter flights from Podgorica to Rzeszów in Poland. Series of charter flights are carried out, as in previous years, to Yerevan, Cairo and Katowice, in the period from June to September, while charter flights from Tel Aviv started in March and will last until October of the current year.

Due to insufficient demand in the off-season, and bearing in mind that Montenegro is a tourist country and that most of the traffic at our airports in Tivat and Podgorica takes place during the high season, i.e. from mid-May to mid-September, for now it is not profitable to open an airport - lines in the winter period. However, as I said, and appreciating the Government's strategic determination to make Montenegro a year-round tourist destination, on the basis of economic profitability, we will work on expanding the network of destinations and increasing the base of travelers - customers of our services and integral tourism product Montenegro.

What do you expect from the owner - the Government? Can the company continue to develop without state aid or recapitalization?

Above all, we expect professionalism, entrepreneurship and a stable management structure of the company. In airlines and national air carriers, there should be no room for political management, but there must be key criteria, which are safety and security of operations and economic efficiency, stability and sustainability. I believe that in agreement with the Government of Montenegro, we will achieve an optimal solution, taking into account the needs of the national airline on the one hand, and the Government as the owner and founder on the other, and all in the common interest of dynamic growth and development in the interest of tourism and other businesses, citizens, the state and "Air Montenegro".

How do you comment on the fact that the government allows the low cost carrier "Pegasus Airlines" to enter the Podgorica-Istanbul line and thus increases the competition on this line for its airline?

It is expected that the entry of competition into any market will have an unfavorable effect on the previous participants in the market competition, so this is also the case with the entry of the Pegasus company on the route from Istanbul to Montenegro, which will affect the operations of "Turkish Airlines" and "Air Montenegro". , which have been operating regular traffic on this line for many years.

Although the business concept of "low cost" and regular air carriers are significantly different, therefore the users of the services are in principle different clientele, a part of the passengers is ready to change the carrier just because of the lower basic price of transportation. It is important to point out that "Air Montenegro" is ready for market competition with competitors, but at the same time that, although the company is 100% owned by the state of Montenegro, it is subject to strict state aid control, while this is not the case for companies coming from countries that are not in the EU, nor have they harmonized their legislation with the same, as is the case for example with companies from Turkey. Although "Air Montenegro" and "Turkish Airlines" have formed a certain client base by investing significant resources, money and time, in the best case, an additional effort will be required to retain them. Comprehensive quality offer "Air Montenegro", which is a commercial airline, has a respectable passenger base on the route to Istanbul, which is one of the most profitable. Bearing in mind the level of quality, i.e. the ratio of price and quality of the overall service of "Air Montenegro", we appreciate that there will not be a significant drop in the number of users of our services, especially because "Pegasus" flies from another airport and has a different target group. In the end, the Government of Montenegro must decide whether it is in the interest of a national airline that will provide stable operations and be financially strong.

Before your election, information appeared that you met with the members of the board of directors of "Air Montenegro" even before the competition. What did you discuss at that meeting and did that meeting allow you to be elected as a director?

At the initiative of the members of the Board of Directors, we met in Ljubljana when they informed me that, in accordance with the supervision of the company's operations and their professional duties and responsibilities, among other things, they wanted to communicate with several candidates for the position of executive director of the company, including me. . On that occasion, they presented me with the current state of the company, ambitions and development plans in the short, medium and long term, as well as proactivity in order to find the best possible solution.

How do you plan to resolve the dispute with the company "Oki Air" regarding the debt to "Air Montenegro" for collected baggage fees that were not forwarded to your company? Does that company have a privileged relationship considering that its owner, Orhan Hodić, is on the board of directors of "To Montenegro"?

All business arrangements are accompanied by appropriate protection mechanisms through bank guarantees and other forms of security. The breakdown of debts and receivables with all partners is done periodically and there are no indications that there is a deviation in cooperation with any partner. Membership in the company's Board of Directors is not the responsibility of the executive director, but of the owner and founder. In the part of my powers and competences, as well as obligations and rights, no one will, on any basis, have a privileged position. The only criteria by which I will be guided and evaluate employees and associates are professional ethics, expertise, knowledge, efficiency and good financial and physical indicators of our joint engagement and work. The company "Oki Air" is a long-term partner, which is at the very top of the agencies we cooperate with, taking into account the number of Air Montenegro air tickets sold.

Are you planning to open your counter at Podgorica Airport in order to directly and independently collect tickets and fees for excess baggage?

In cooperation with the company's management, we will consider the possibility of opening an "Air Montenegro" counter branch at Podgorica Airport as a long-term solution. However, I would like to emphasize that within the online sales strategy, the worldwide trend is to outsource, i.e. assigning specialized agencies to provide services at airports. In this way, we contribute to strengthening the public-private partnership, and make business more efficient and rational.

Professional experience is more important than the terms of the contract

Under what conditions did you accept to be the director of "Air Montenegro"? What will your salary be, did you ask for severance pay or some other privileges? What do you promise to do for "Air Montenegro"?

The conditions are defined in accordance with the signed contract. I believe that it is much more important that I perform my job in an extremely professional and professional manner, and my previous experience and professional references recommend me for the position of executive director. Also, no less important is that I will work with maximum dedication, with enthusiasm and love in the work that I have been doing for most of my professional career and which has brought benefits to the companies I worked in and to me and my co-workers, to the mutual satisfaction and in the mutual interest . With the existing team and the possible engagement of several more experts from the aviation business, I am sure that we will contribute to a more dynamic development of the already successful national airline, which will be the pride of Montenegro.

The conversation with the representatives of the Board of Directors in Ljubljana at the time inspired and motivated me to apply for the position of executive director, and I believe that my contribution to the improvement of the company's work will be good financial and physical indicators, expanding the network of destinations, retaining current users of our services and expanding the base of new ones. socially responsible and sustainable business in the interest of the citizens of Montenegro, the state, the economy, strategic partners and client-travellers.

If the money is provided, they will put "Charli" into traffic

"ToMontenegro" still does not have an IATA code, due to a dispute with the former bankruptcy administration of "Montenegro airlines". How difficult does it make the company's work and how do you plan to solve this problem?

We have started the process to obtain a new IATA code, which is ongoing and which is a prerequisite for signing code share agreements and other agreements at the international level, but does not limit us in operations. However, in 2022, we signed the IOSA agreement and received a certificate based on which we meet all technical standards.

Another problem left over from the era of the former airline is the fate of the "Charlie" E195 40-AOC aircraft. Is the company interested in him, as long as the government buys him from BNDS bank and pays his D-check?

If it is possible to provide the necessary financial resources for the investment in the direction of training the aircraft for operations, we at "Air Montenegro" will put it into operation for traffic based on the principles of economic sustainability and profitability in accordance with commercial plans in the coming period