It’s true that country can’t keep financing and forgiving debts of Montenegro Airlines. However, we shouldn’t neglect the fact that we are a small country, said Dr Božo Mihailović, professor in the Faculty of Economics and president of the Association of Economists.
“There are three options for settling this issue. The first, let everything be just like it is now, which is impossible for the country. The second option is restructuring and the third, the worst of all, is going into liquidation. All three options should be examined while taking care of country’s interests, tourism and overall economy”, said Dr Mihailović.
Dr Mihailović said that some foreign company would look after of its own interest only.
“Some foreign company which would be willing to take over MA could shut it down due to, let’s say, minor revenues, and thus inflict substantial damage to Montenegro and its tourism”, warns Dr Mihailović.
He recalls that MA started off with one plane more than two decades ago.
“Ever since then, this company has been playing a very important role in our economy. We must not ever forget that. Now this company is in a very complex economic situation, it’s in debts. But this is a specific type of business, competition is big, number of planes is small, fixed costs and service costs are high, conditions under which planes had been acquired are quite unfavorable. Operating costs have been reduced while the number of passengers has increased. MA has proven to be an important stability factor”, says Dr Mihailović.
Professor also commented on the Government’s decision on offering concession on the Airports of Montenegro. He says that Montenegro should keep relying on foreign investments.
“I don’t know if that’s legal or not, but what I know is that Montenegro hasn’t got enough accumulation and it just has to rely on foreign investments. Eyes wide open for final concession agreement. If we bring our airports into the state of economic inefficiency, it would be a disastrous move”, points out Dr Mihailović.
