The Civil Aviation Agency of Montenegro (ACV) performs a supervisory function over the Air Traffic Control of Serbia and Montenegro (SMATSA), but it has no possibility to influence the Government of Serbia to adopt the Financial Plan of SMATSA for 2024. We expect this situation to be resolved as soon as possible so that development plans and air traffic safety are not threatened, the Montenegrin Civil Aviation Agency told "Vijesta".
SMATSA has been in a temporary funding regime for eight months because the Government of Serbia did not approve the Financial Plan, nor the Business Plan of SMATSA for the period 2024-2028. This institution unofficially told "Vijesta" that due to temporary funding, planned investments in the modernization of air traffic control systems have been delayed, that employees do not receive full wages, that cooperation with European institutions and banks that approved favorable loans for development projects is at risk. These plans envisage the investment of around five million euros in the equipment of Air Traffic Control in Montenegro.
SMATSA and the Government of Serbia did not answer the questions of "Vijesti" about this problem. The state of Serbia has 92 percent ownership in SMATSA, and Montenegro has eight percent. It is responsible for the safety of the airspace above these two countries and part of the southern Adriatic.
Business and employees are at risk
The SMATSA union asked the Civil Aviation Agency to react due to the failure to adopt the Financial Plan for 2024 and the SMATSA Business Plan for the period 2024-2028.
"This situation threatens to threaten the medium-term business and the interests of employees, and consequently may cause a mass exodus of quality personnel in the specified period. Please, in the capacity of the supervisory body, remind the responsible and appointed persons in SMATSA of the obligations from EU regulation 2017/373 section ATM/ANS.OR.D.005," it was stated, among other things, in the letter of the SMATSA union.
The CAA told "Vijesta" that they were aware that the Government of Montenegro had approved the Financial Plan Proposal of the Air Traffic Control of Serbia and Montenegro SMATSA for 2024, but that the Government of Serbia had not, which is why this institution switched to a system of temporary financing. They were also informed that the Business Plan of SMATSA for the period 2024-2028 was not adopted either.
Prevent major consequences
To the question of "Vijesti" whether the non-adoption of these plans for eight months now threatens the basic role of SMATSA - air traffic safety, whether it affects the planned activities of SMATSA, whether it can threaten medium-term business and development plans, as well as whether it threatens the interests of employees, the answer was is:
"ACV currently does not have data indicating that the basic role of SMATSA is threatened. This situation can affect the development plans, in the sense of slowing down, and we expect that a solution will be found as soon as possible to continue this important process. As is known, it remains for the Government of Serbia to approve the plan of the company, which was established by an international agreement, which is inevitable for the continuation of business and investment. Given that SMATSA is financed from realized revenues, it is necessary to prevent greater consequences, especially in the part of providing operating costs in terms of salary payments to employees, providing employee training and implementing numerous development projects that contribute to increasing air traffic safety", the Agency stated. .
The EU is looking for plans, they don't expect a blacklist
The source "Vijesti" from SMATSA warned that the failure to adopt these rules violates EU directives, as well as the organizational requirements of the European Union Aviation Safety Agency (EASA), which stipulate that Air Traffic Control must have annual and five-year plans adopted.
"Air navigation and air traffic flow management service providers have a business plan covering a period of at least five years. The business plan should: define the general goals and objectives of air navigation and air traffic services, as well as relevant EU requirements for the development of infrastructure or other technology", it is stated, among other things, in the EASA protocols which are also mandatory for SMATSA.
"Vijesti" asked CAA whether the non-adoption of these plans violates EU regulations in this area, whether cooperation with partners and EU aviation authorities can be jeopardized because of this, and whether SMATSA and our airspace can be put on some form of blacklist.
"It cannot be said that SMATSA violates the EU regulation regulating this issue, because SMATSA has carried out the necessary activities required of it by regulations (and EU regulations that have been transferred to our legal system), according to which it received a positive opinion from the Government of Montenegro Up in March of this year. Failure to approve the financial plan and business strategy from the government of another country is not within the competence of this Agency. We expect this issue to be resolved as soon as possible, as it is of general importance for both countries that founded SMATSA. We do not expect blacklists, nor that it will be allowed to endanger safety and security in air traffic," the agency said.
The founding states to unblock the company
They also said that the professional services of the Agency continuously monitor the development of the situation in this matter and carry out supervisory activities in accordance with the annual plan and program of supervision.
"The agency is closely monitoring the development of events on this important issue and will coordinate further activities in a timely manner, in accordance with its competences. According to the monitoring of the situation so far, SMATSA has implemented the necessary activities in accordance with the regulations. CAA has no mechanisms to change the situation, considering that it is not within our competence, because the decision rests with one of the founding states of SMATSA. We expect this challenge to be resolved as soon as possible at the level of the founding states", stated the ACV.
They say that they received a letter on behalf of the SMATSA employees with a request that the CAA "remind the responsible and appointed persons in SMATSA of the obligations from the EU regulations", but they believe that this is "unnecessary considering that the responsible persons of SMATSA submitted the necessary documents to the founding states, without whose consents cannot be applied".
"In this case, the potential finding could not refer to SMATSA, taking into account everything explained, and it is not within our jurisdiction to determine the findings of the government of any state", said the ACV.
Talks in Belgrade on September 2 and 3
Deputy Prime Minister Milun Zogović and Minister of Transport Maja Vukićević will pay an official visit to Belgrade on September 2 and 3, 2024, where, according to the announced visit platform, they will have talks with the Serbian Minister of Construction, Transport and Infrastructure Goran Vesić and the director of the Regional Permanent Secretariat of Transport community Matej Zakonjsek.
According to unofficial information from "Vijesti", the topic of discussion will be the current crisis in SMATSA, as well as proposals for a possible reorganization of this joint venture.
The "Vijesti" source from SMATSA previously said that the possible reason why the Government of Serbia did not agree to their Financial Plan is of a political nature, i.e. that some members of the ruling party in Serbia want to take over the management of this profitable company with high salaries and they employ people close to them in it.
SMATSA operates independently and is a highly profitable company due to the revenue it collects from airlines and does not use money from the budget. This company has EUR 50 million of undistributed profit on its account.
The supervisory board of SMATSA has five members, of which four are elected at the proposal of the Government of Serbia and one member at the proposal of the Government of Montenegro, and they are elected and recalled by the Assembly of the company. The SMATSA assembly consists of six members, three from each founding state and representatives from the ministries responsible for transport, finance and defense. The financial plan of SMATSA, on the proposal of the Supervisory Board, is adopted by the Assembly of the company, as one of the governing bodies, to which written consent is given by the governments of the founding countries.
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