He cited Montenegro Airports Administration data that operating profit (EBIT) increased from 3.1 million in 2012 to 13.5 million in 2017, as well as that this company has paid over 150 million to the state in the past 15 years. "According to current business, the state can count as much as 20 million euros a year or 500 million in the next 25 years. But with unquestionable growth in turnover and revenue, this figure should be significantly higher," said Šćuric.
He said that the benefit would be greater if Airports did not help “Montenegro Airlines”, according to the Government's decisions, "which the eventual concessionaire will certainly not be doing."
"The public is well aware that I am against the concession for airports that are profitable and can be developed with their own means. And the Airports of Montenegro certainly are such. One of the concession-related truisms that is mentioned as a mantra in Montenegro is that concessionaires have a higher turnover growth than those in a state ownership. The truth is, in fact, completely different," said Šćurica, citing that six airports in the region with the highest turnover growth in 2017 are not under concession, and that in most EU countries all or most of the airports are run by the state.
He claims that concession advocates argue that airports need urgent investment in infrastructure at both airports. "And they're right. Tivat Airport is too small and it has remained in the past. Podgorica airport also has a capacity shortage, and frankly, it looks more like a factory hall than an airport. In addition, everything is tight, and the facilities within the airport are too small, especially the body-check and the duty-free. And there is a need for serious investments. However, the airports can withstand these investments with the current profit. If it does not go too far, and these investments are made rationally, in stages and without congestion, it is certainly easy to finance and organize," said Šćuric.
PHOTO: Siniša Luković
He also pointed out that both airports are not following the modern trends in non-aviation revenues.
"From banal parking in front of the terminal, which is still sluggish and free (instead of being limited to 10 minutes and then seriously charged), and up to a range of billing options for the services that currently does not exist. But the administration is familiar with this and it is something you can and will want to eliminate, therefore to raise substantially more money in the future," said the analyst.
He wrote that both Montenegrin airports have 630 full-time workers and 310 seasonal ones, while the airport in Dubrovnik with significantly larger traffic has 394 permanent employees and 290 seasonal workers.
"Critics of this figure forget that the Airports of Montenegro serve two airports. Some services simply need to be duplicated because both airports must have them. Thus, Dubrovnik can go along with a team of firefighters of a certain category (the minimum number of firefighters for the category), while the Airports of Montenegro must have double the firefighters, equal teams as well as Dubrovnik, but two of them at two locations. The range of services must be duplicated, which would not be necessary if the company operates at only one location. Finally, in comparison to the operations in Dubrovnik and the Airports of Montenegro, it is evident that Montenegrins are performing a series of operations manually, with the need for a large number of people, due to the lack of automated equipment and machines. Even the concessionaire will partially reduce the number of workers by introducing better-automated machines and more modern operating trends, but the number will not be close to the level of Dubrovnik, because of the handicap of operating two airports," said Šćurica. He reminded that both airports had moved from JAT's ownership to the Airports of Montenegro in 2003, since when the number of passengers has tripled. In 2003, Tivat had 301,000 passengers and 1.1 million in the previous year, while in the airport in Podgorica increased traffic from 303,000 to 1,05 million.
Most tourists use the airlines, the roads and railroads are a disaster
That tourism in Montenegro depends on the success of air transport, Šćuric confirms with the fact that the airports in Croatia have 9.5 million passengers on 18.5 million tourists, while Montenegro has 2.2 million passengers and two million tourists. "The road connection of Montenegro with the region and further to Europe is very bad, in fact, really catastrophic. And in this case, it is not only about the great distance from Montenegro to central Europe, but the poor road infrastructure, the lack of connections to motorways, even the fast roads, as well as the long waiting at the border in the peak season. Frankly, at this moment, even from far-reaching Central Europe, Greece is better connected with the road infrastructure than Montenegro, i.e. it is reached faster than Montenegro," said Šćuric, citing that other forms of transport such as rail and ship are in much worse shape and that the state is dependent on who and how manages the airports.
"4K wants 'Montenegro Airlines', it can be dangerous"
Šćuric expects that the investment fund "4K", linked to the German "Lufthansa", will take over Montenegro Airlines, as it took over Slovenia's Adria, and then the same will happen with "Croatia" and maybe "even Air Serbia". "Then one of these companies will make one company. When the last statement by the Minister of Traffic Osman Nurkovic is personalized, it is clear that he has described "4K" as a possible partner recklessly. It is a big investor, the minister says (unfortunately the minister is not right here, but from his position, '4K' might look big) that already owns an airline company," Šćuric wrote.
PHOTO: Boris Pejović
However, he calls for caution, because "4K" has in some cases taken over the company and then released all the workers, and its airplanes and lines dropped into other companies. 'Moto' 4K 'is' We fix it'. And yes, the '4K' has the idea of cheaply taking over the company, bringing a foreign management, cleaning it, stabilizing the business, showing growth, and then selling it for far more money than it was invested in the company. But if '4K' fails to do so without the slightest amount of guilt it can declare bankruptcy of the company, dismiss the workers and dispose of the property," said Šćuric.
Text by Goran Kapor, on October 21st 2018, read more at Vijesti
