Wizz Air’s determination to open a base in Podgorica subsequent yr, deploying two Airbus A321neo plane and launching fourteen new routes, is ready to considerably reshape the Montenegrin market. The transfer will primarily put stress on nationwide service Air Montenegro, which has to date relied on restricted competitors on a number of key routes in Western Europe. With Wizz Air introducing flights to locations reminiscent of Rome and Ljubljana, each at the moment served by Air Montenegro, the low price big is immediately difficult the flag service. The Montenegrin airline nonetheless has no codeshare or interline partnerships, making the most important hubs in its community reminiscent of Paris Charles de Gaulle, the place it’ll compete not directly with Wizz’s Beauvais service, unable to faucet into connecting visitors and due to this fact closely depending on native point-to-point demand
The arrival of Wizz Air is anticipated to result in decrease yields and intensify the necessity for a strategic response, which can doubtless contain operations on the nation’s forthcoming Public Service Obligation (PSO) program. Below this scheme, the federal government will subsidise flights on routes deemed strategically vital however commercially unviable, making certain continued air connectivity for key locations. Authorities are at the moment assessing which routes will qualify for inclusion within the PSO package deal, after which a public tender is anticipated to be introduced.
Past Air Montenegro, regional rivals are additionally watching intently. Air Serbia, which operates over sixty weekly flights to Montenegro throughout the summer season season additionally sees a notable portion of switch passengers on its flights to and from the nation. It is going to now face oblique competitors from Wizz Air on a number of routes to Western European markets. Wizz Air may also go head-to head in opposition to Ryanair on a number of routes to Poland.
This week, the Montenegrin authorities adopted a proposal to direct a part of the earnings from the state-owned firm Airports of Montenegro, amounting to 4.12 million euros, towards initiatives geared toward strengthening the nation’s air connectivity. In accordance with the Ministry of Transport, these funds would usually return to the state finances in step with the corporate’s statute, however upon the Ministry’s initiative, the federal government authorised their focused use to assist the event of air transport. The choice, the Ministry added, continues a collection of tangible steps geared toward advancing air transport and growing Montenegro’s accessibility. “I’m happy that the federal government has supported the Ministry’s initiative to reinvest a portion of Airports of Montenegro’s earnings into programmes that improve the nation’s connectivity. Following Wizz Air’s arrival and the settlement to open a base, we’re persevering with with measures that can allow regular development in air transport, assist tourism improvement and strengthen the general economic system”, Transport Minister, Maja Vukićević, mentioned. Ms Vukićević emphasised that Airports of Montenegro are but to resolve on potential subsidies for Wizz Air, in addition to the extent of airport service expenses over their upcoming Podgorica base.
