PSO routes likely to Western Europe

The Ministry of Transport is currently analyzing air routes that could be declared as routes of public interest (PSO), with their priority being places that will better connect Montenegro with European centers, especially Brussels - given its importance in the process of integration into the European Union (EU).

This was officially stated to "Vijesti" by the Ministry headed by Maja Vukićević.

PSO is an arrangement in which the state offers subsidies to airlines through public procurement, so that those who win the tender are obliged to operate air transport on precisely specified routes for a certain period of time, for a certain fee. In mid-May, the Parliament adopted amendments to the Air Transport Law, which proposed the introduction of these lines.

The Ministry pointed out that the amendments to that Law were the legal basis for the introduction of the PSO model, and that a draft regulation on more detailed conditions for declaring these lines and the manner of performing air transport on them has been prepared, but that the Secretariat for Legislation and the Ministry of Finance must still provide an opinion on that document, after which it can be sent to the Government for adoption.

"The usual practice within the PSO model is that only one operator operates on each line, in order to ensure the quality and efficiency of services. The number of lines that will be declared PSO will be defined based on market needs, budgetary possibilities and strategic priorities, and the specific number of lines per year will be known after the analysis and public procurement. The Ministry, in cooperation with relevant institutions, is analyzing possible routes that could be declared PSO, taking into account the criteria defined by national regulations and EU regulations. Priority is given to destinations that contribute to better connectivity with European administrative, economic and transport centers, as well as those that are of importance for citizens, the economy and international cooperation. Among the potential lines, those to centers such as Brussels are also being considered, given the importance they have in the context of Montenegro's European integration," the Ministry emphasized.

They explained that when determining the lines that could be declared PSOs, they will be guided by criteria defined by EU regulations, such as lack of market interest, the need for accessibility to remote or poorly connected areas, and the justification of the investment. The Ministry also pointed out that the specific lines will be determined through a justification analysis and after the adoption of the regulatory framework, so they do not currently know the tender dates and the estimated value of the subsidies.

They added that the implementation of this model will be in line with Montenegrin legislation and EU regulations, and that the work on each PSO route will be performed by an air carrier selected in a tender.

"The regulation will define the conditions for declaring routes of public interest, in accordance with the applicable regulations of Montenegro and EU standards, in particular Regulation (EC) No. 1008/2008. In parallel, the Ministry is preparing other supporting documentation so that the procedure for introducing the PSO model can be carried out legally, transparently and with the aim of strengthening Montenegro's air connectivity with key destinations," the Ministry stressed.

They also emphasized that the costs of implementing this model will depend on the number of lines declared as PSOs, their frequency and the duration of the public service obligation, but that these details will be known only after the analysis and tender. All costs, they say, will be aligned with the capabilities of the state treasury and European rules, while they expect to improve Montenegro's accessibility through better air connectivity with destinations, especially within the EU.

They claim that the main benefits will be easier and more efficient business operations, better accessibility for tourists, and easier transportation of passengers and goods, which will further mitigate the trend of airport use.

Amendments to the Traffic Law proposing the introduction of PSO routes were requested in January this year by the Democratic People's Party (DNP) parliamentary group.