"ToMontenegro" in loss due to the contract with "Oki Air"

The analysis of the justification of the opening of the office and counter of the state airline "ToMontenegro" at the Podgorica airport showed a complete justification for such a decision, as well as that it would earn significantly more money for ticket sales, baggage collection and other services if it worked for itself than if it left them to the private sector. to the company "Oki Air".

"ToMontenegro" ("Air Montenegro" brand name) announced last week, after writing "Vijesti", that such an analysis does not exist and that the board of directors has never discussed it.

"Taking into account the planned traffic in the coming period, and the expected increase in the number of destinations, we suggest that 'Air Montenegro' opens its office in the city at full capacity, and the counter at Podgorica airport. Finally, it should be noted that all European scheduled carriers have representative offices at their home airports, and we are of the opinion that we should not deviate from the established European practice", it was stated at the end of the analysis carried out for the needs of the company by the sales and customer support sector, in which "Vijesti" had an insight.

This shows that the management of the company misled the public and told a lie in its response last week. The owner of the three companies "Oki Air" that provide these services at the airports in Podgorica, Ljubljana and Belgrade, "ToMontenegro" was then owned by Orhan Hodžić who was then and is now a member of the board of directors of "ToMontenegro". At the end of May, before signing a new contract with "ToMontenegro", after being warned that he was in a conflict of interest, he transferred the founding rights in these companies to family members and related persons.

By opening a branch office at the airport, "Oki Air" would be left without significant income, and as the analysis shows, the state-owned company would have at least two thousand euros more per month than it is now, even after paying all costs for the operation of the branch office. At the same time, this analysis was done at the end of last year on a lower passenger traffic, so, as stated, with the growth of traffic (which is happening now), the company's benefit from opening a branch office would be even greater.

"Savings on a monthly level (the difference between the new costs of the Air Montenegro counter and the current cost of the service by the agency plus additional income) 2.054,86 euros per month", it was stated in the tabular overview of the costs that are part of the analysis.

The committee in which Hodžić did not accept the proposal

According to materials in the possession of "Vijesti", a member of the Board of Directors Vukadin Stojanović, who was dismissed last week, on January 10 of this year, from the Chairman of the Board of Directors Pavle Ljesar requested to be provided with an analysis on the opening of the branch office. Ljesar submitted the analysis to the members of the Board of Directors on January 18, and the possibility of opening a branch was discussed on January 25, when the idea was rejected without a clear explanation.

"The board of directors never considered the analysis of the justification for opening branches, because the analysis itself was never done. A serious study is also needed for a serious analysis, and the same is, at the current stage of the company's development, more than unnecessary, because the opening of a branch, on the scope of work of a newly founded company, is financially unprofitable", stated last week from this state-owned company.

In the analysis, however, it is stated that the commercial affairs sector "proposed the opening of a branch office in Podgorica for 2022, which did not materialize due to the still pronounced consequences of the pandemic".

"When it became certain that air traffic was recovering, the season was already in full swing, and there were no resources that could present the project of opening a branch at that moment, nor was there a Board of Directors of the company that would approve the necessary systematization change. We are of the opinion that all the necessary conditions have now been met for the opening of the "Air Montenegro" branch office in Podgorica and the counter at the Podgorica airport. The "Air Montenegro" branch office will represent the constant marketing promotion of the company, which helps to create brand awareness, contributes to better accessibility of the airline to clients and generates additional income. An analysis of income and costs for three possible scenarios is attached to this document," the analysis reads.

As stated, the company has not had its branch office in the inner city area since its establishment, while at the Podgorica airport, ticketing and passenger and baggage services are performed by the agency "Oki Air Montenegro", with which the contract is valid until May 31, 2023.

Because of "Oki Air" they risk the contract with the Health Care Fund

The analysis also states that it is a particular problem that the company does not have an office in Pogorica, because passengers can only buy tickets online, through travel agencies or at the "Oki Air" counter at the airport.

"In December 2022, a protocol on cooperation with the Health Fund of Montenegro was signed. One of the items that the Fund insisted on was to offer its users the option of paying for tickets in cash and by card at our office. The current operational situation, related to communication with the users of the Health Fund, is critical and goes beyond professional standards, all in order to meet all users (impossibility of receiving clients in the company's current business premises, issuing tickets based on telephone conversations and passing tickets through social networks). Expectations are that the annual income based on cooperation with the Health Fund will be 300.000 euros, for which appropriate logistics are necessary. Opening a branch office in the city would significantly improve service and accessibility to passengers, especially corporate clients who expect service at a higher level," the analysis stated.

This shows that the company was aware that not opening a branch would harm them, but that for some reason this did not happen, which suited a private company owned by a member of the board of directors.

"Now, for example, an employee in one of the travel agencies has the option to offer the client another carrier if they have any interest in it, which would not be the case with the employees in the 'Air Montenegro' office. Until now, there have already been cases where passengers filed complaints about the amount of charges for changing tickets, which were later found to be arbitrary, and were charged at the agency in violation of the tariff rules," the analysis reads, noting that the projection of issued tickets in branches in the submitted analysis were done conservatively, i.e. they kept to the minimum amounts.

Analysis of the opening of a branch office in the central part of the city showed that, after all expenses, the company would have at least three thousand euros of additional income.

The possibility of opening a branch office in the "Kapital Plaza" business center, where the company's headquarters are located, was also analyzed, which also showed a positive balance if it were to be opened.

His counter in Tivat works very well

When analyzing the opening of counters at Podgorica Airport, a positive example was cited from Tivat, where "ToMontenegro" does this service for itself.

"Since the beginning of commercial traffic, the tasks of issuing tickets and serving passengers and luggage at Tivat airport have been performed by two female colleagues, who are employed by 'Air Montenegro', with very high-quality work results, which is a representative example," the analysis reads.

As stated, employees engaged in travel agencies work for several airlines and offer passengers several options.

"An atmosphere is being created on the market that 'Air Montenegro' favors a certain travel agency, and that would be eliminated by establishing a company counter", it was stated in the analysis from January of this year.

Although half a year has passed since the analysis was compiled, nothing has happened in the meantime, although Stojanović has repeatedly addressed the then acting executive director. To Saša Radović, and now to the new director Mark Anjur. In the meantime, Anžur signed a new contract with "Oki Air" to provide these services for the next 12 months without announcing a tender.

The company has various problems because it does not have its own people at the airport

The analysis also states that in addition to financial losses due to not having its branch office at the airport in Podgorica, the company also has other problems due to this lack.

"There are technical limitations that cannot be solved except by engaging your employees at the airport, which would bring greater comfort and utility to our passengers. Representatives/agencies do not have the right to issue DHC tickets and tickets under the Rulebook on preferential transportation. They do not have the right to change/correct names on the cards. They do not have the right to issue new tickets in accordance with the involuntary procedure. All the situations that happen very often at the airport are mentioned, and to a significant extent they take the time of colleagues from the support department, and yet they burden the passenger with unnecessary waiting", it was stated, among other things, in the analysis.