The national air carrier Montenegro Airlines (MA) was provided with new state aid of two million euro on April 13. The Finance, Transportation and Maritime Ministry, headed by Darko Radunović and Osman Nurković, did not respond on Friday to the inquiry by Vijesti for what purpose were the funds delivered to Montenegro Airlines.
The rebalancing of the state budget allocated four million euro to Montenegro Airlines to fulfil commitments to suppliers, the Air Traffic Control of Serbia and Montenegro and other suppliers for debts from the previous period.
The European Commission noted in its newest report for Montenegro it is concerned with continued support for the national airline and cited a need for complete restructuring of the company. “Montenegro Airlines are facing serious sustainability issues, accumulating significant financial debt. The restructuring plan form 2012 was only partially implemented, but state support was nevertheless approved in order for the company to be operational,” cited the EC in its report.
They also warned that awareness of state aid rules among those issuing it is weak and needs to be bolstered. State aid laws cite that a company which receives state aid cannot receive more in the next 10 years. Also, a legal condition for state aid is the approval of the State Aid Commission.
An earlier analysis of the MANS research center and Vijesti has shown the government has, since Montenegro Airlines was founded, allocated significant funds for it to survive. By the end of 2014, based on recapitalization and subventions, it has invested 58,5 million euro, while the reduced share capital of the company means at least a 14,3 million euro loss.
At the proposal of the Transportation Ministry from last year, the government paid the debt of Montenegro Airlines (MA) to the Hipotekarna Bank in the amount of 2,2 million euro, to avoid the activation of state guarantees. Special state attorney’s office has created an item on the state aid to MA after SDP MP Raško Konjević stated aid was administered illegally and without the approval of the State Aid Commission.
MA ended last year with a deficit of 4,606,487 euro, which raised the total loss of the company to 76,497,309 euro. The annual loss of this state company, headed since the beginning of last year by Nikola Vukičević (board president) and Živko Banjević (executive director), was reduced by 2,5 times compared to 2016 when it was 11,473,590 euro.
MA also has unallocated profits of 327,297 euro, short-term commitments and reservations amount to 75,119,982 million euro, and long-term ones to around 13,9 million euro. The company capital remains negative (-40,279,522 euro).
The national airlines is black-listed by the Tax Office, owing the state at the beginning of the year 17,137,290 in taxes and contributions. MA had 394 employees at the end of last year. The government owns around 99,9 percent of shares of Montenegro Airlines.
Translated from Vijesti Online, for the original click here.
