There’s no doubt that coronavirus crisis is difficult and has devastating consequences for airline industry and all its factors. We are faced with the most serious crisis of commercial aviation since its founding, and it is still not foreseeable how long the situation will take. Every phasing out of services is very expensive, and costs are multiplying, said in the interview for Dan new CEO of Montenegro Airlines (MA), Mr Vlastimir Ristić.
“Closer data on the effects of the crisis on MA will be known after the commercial flight period is over. MA hasn’t been operating since 16 March, and according to the latest measures of the National Coordination Body, we can expect first flights in June. The crisis will affect everyone directly or indirectly linked to airline transport, from airports, tourist agencies, tour-operators, hotels, restaurants and all other types of tourism offer… We are all in this tourism chain, which is suffering but hopefully with Government’s help, we will hold on”, Mr Ristić said.
- How phasing out plane services affects consolidation of companies and will there be any changes in relation to the implementation of the Law on MA Consolidation?
-Severe Covid-19 consequences mostly refer to the future activities and it is very difficult to consider them fully. Implementation of the adopted law is our priority task and has elements which refer to the procurement procedure of capital assets. How will marker react to all the shakes of Covid-19? It is too early to tell.
- What’s the amount of minus in business in April?
– Losses amount to several millions. Services have been phased out for two months. We have many fixed liabilities, the most remarkable of which are: payment for lease and credit rents for planes, maintenance of motors, salaries for staff… As I said, we are faced with the unprecedented crisis in the airline industry.
- Did MA cut salaries during the crisis and will there be any in future?
– Forced suspension of the basic activity of the company has conditioned the absence of the need for engagement of workforce. Although not gladly, we had to resort to the law institute of temporary suspension of work without the fault of the employee, which means that employees are not at work and are not obliged to work from home. They are, therefore, entitled to salary amounting to 70% of the basis for the fee which accounts for the average salary for the previous term.
- You were suspected of violating the Law on Prevention of Corruption as you manage two private companies. How far the procedure has come and did you really violate the law?
-The procedure you mention finished several months ago. It would be best if we let institutions bring their activities to an end.
- What will you change in MA, as its CEO? Will you make any cuts in the company?
-MA’s strategic objective will be the same – maintaining economic, tourism and strategic potentials the company has. Overall social function of the company must be strengthened. We will do our best to prepare for the implementation of the Law on Investment in the consolidation and development of MA.
MA has got the opportunity to demonstrate its capability of adapting to the dynamic process of changing characters of airline traffic and show that it has the ability to become serious company which performs it social task.
