MPs have completed the debate on amendments to the Air Transport Law, which propose the introduction of public service airlines - PSO (Public Service Obligation) - into domestic legislation.
The amendments to this law were proposed by the Democratic People's Party (DNP) parliamentary group, and their MP Jelena Kljajević emphasized that these amendments create a legal framework for the introduction of lines of public interest, so that the state can provide lines to strategically important locations.
She pointed out that this is important for Montenegro because tourism accounts for a third of GDP, but also for greater air accessibility, and that the changes are proposed in agreement with the Ministry of Transport.
"This is not subsidizing airlines, this is an investment in the connectivity of Montenegro. With this law, we are creating an institutional mechanism that makes us more competitive, more accessible and more legally aligned with EU practice. The law stipulates that all details will be elaborated through a by-law that will be adopted within six months," Kljajević emphasized.
PSO is an arrangement in which the state offers subsidies to airlines through public procurement, so that the airline that wins the tender is obliged to operate air transport on precisely specified routes for a certain period of time, for a certain fee. There are clearly defined conditions that a route must meet in order to be considered a route of public interest.
The deputies also completed the debate on the Bill on Ratifying the Agreement on the Provision of Aviation Services between the Government of Montenegro and the Government of Azerbaijan.
Opposition disputes treatment of Montenegro Airlines
Democratic Party of Socialists (DPS) MP Nikola Rakočević said that Montenegro's air accessibility has been decimated by the closure of "Montenegro Airlines" and subsidies for low-cost airlines, and that Podgorica and Tivat are not even in the top ten regional airports.
He emphasized that the Split airport has a higher passenger traffic than both domestic ones, while "Montenegro Airlines" transported 650.000 passengers and "Air Montenegro" now transports around half a million.
"Ernst and Young estimated the resources of "Montenegro Airlines" at 2,5 million euros. Did you know that "Montenegro Airlines" has an office building in Beogradska Street worth several million euros, an office building in an elite building in Podgorica worth over a million, office buildings in Budva, an office building in the old tower at the Old Airport," Rakočević emphasized, adding that the company should never have shut down for these and other reasons.
He announced that he would request a consultative hearing regarding the situation at "Montenegro Airlines", because former employees are threatened in the bankruptcy proceedings.
DNP MP Dragan Bojović said that Montenegro Airlines' debt in 2018 was 100 million euros, that the company employed more than 600 workers, and that as a club they were not in favor of closing the company down. He emphasized that the 43rd Government, supported by DPS, reduced the number of routes and now they must work on increasing them.
"What was done during the bankruptcy, it is best to ask Blaž Jovanić, the former president of the Commercial Court, and the team that managed the processes and brought the company to the state it is in," said Bojović.
Rakočević pointed out that tourism has been destroyed, and with it air accessibility, with the number of routes being reduced every year. He claims that PSO routes are state aid from which the state has no essential benefit, and that Lufthansa is also having business problems, and that this is not unusual for this sector.
Social Democrat MP Boris Mugoša stressed that the concession for the airports does not end for six years, and that Montenegro still does not have a strategy but is adopting "ad hoc" solutions. He claims that the introduction of these lines has been criticized before.
Bojović stated that in 2019 and 2020, the Government of Duško Marković made a decision to allocate more than seven million euros to "Montenegro Airlines" despite all its debts. He emphasized that there was no state aid, but that EU countries also have similar measures.
"Amendments to the Law are an admission of error"
The Europe Now Movement stated that the airline was not managed properly and that, according to the data, 58.000 free tickets were distributed, totaling five million euros.
Mugoša emphasized that the former and current national airline cannot be compared because one had multiple aircraft and destinations, while the other only had one aircraft.
DPS MP Nikola Milović added that the parliamentary majority admits a mistake by proposing such legal changes, and that the fact that 100.000 Montenegrin citizens used Tirana airport last year speaks for itself. He claims that the solution is being adopted after the economy and tourism have been destroyed, and that the situation will be difficult to improve.
DPS asked where the government and ministries were to call for talks and decide how to improve the aviation sector. They also claim that the solution was submitted to the parliamentary group in order to bypass obtaining the opinion of the European Commission and bypass state aid procedures.
It could be heard from the Democrats that the planes had previously flown for smuggling, selling off the homeland, and that they were heading to Cyprus where Montenegro was being sold for a percentage.
"Every evening at Golubovci Airport, the same scenario, one plane reporting a malfunction, every evening an emergency landing to load the planes with tons of smuggled goods and cigarettes. None of the malfunctions were real, each one was fake and staged," said Boris Bodganović.
He claims that the cash was loaded with forklifts and that some transported it to Cyprus 178 times.
DNP MP Vladislav Bojović stated that no one criticized the proposed PSO route model at the session, but also that DPS is the last one to talk about closing down companies because they closed down every one they could reach. His colleague Dragan Bojović pointed out that both domestic airports are working better than in the previous period.
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