Air Montenegro’s fleet will soon grow to three Embraer aircraft after the Montenegrin Government decided to purchase an E195 for the airline. The E195, formerly belonging to Montenegro Airlines, does not have a left engine, and Air Montenegro does not have the funds to purchase it.
Air Montenegro will grow its fleet
The Government of Montenegro has decided to purchase an Embraer E195 for its startup national airline, Air Montenegro. It will purchase the aircraft from BNDS of Brazil, Vijesti reports.
The airline has a fleet of two Embraer E195s, but it wants this number to grow so that it can expand its destinations network in the peak summer months when the country of Montenegro sees an influx of tourists whose spending accounts for a higher proportion of Montenegro’s GDP than it does for any other European country’s GDP.
Air Montenegro previously sought to purchase the E195 aircraft itself, but it could not find the funds to do so.
The aircraft, nicknamed Charlie, was one of the Embraer aircraft in the fleet of Montenegro Airlines, the predecessor of Air Montenegro. The Government of Montenegro decided to shut down Montenegro Airlines in December 2020 after it ran out of legal options that would allow it to provide more rounds of state aid for the airline.
Air Montenegro was set up in record time of just six months in 2021 to replace Montenegro Airlines, and so it is unsurprising that the new airline wants to make use of the fleet left behind by the old airline.
Where is Charlie now?
Charlie, the Embraer aircraft that the Montenegrin Government is buying for Air Montenegro, is currently located at Podgorica Airport (TGD), which was the base of Montenegro Airlines and which is the base of Air Montenegro. The 12-year old aircraft has been there since 26th December 2020, when Montenegro Airlines was grounded.
It is not yet known how much money the Government of Montenegro will have to pay to acquire the E195 aircraft, and it is not known who will fund the additional costs of getting the aircraft into a state where it is fit to fly.
What is known is that Air Montenegro received the green light in June 2021 from its owner, the Government of Montenegro, that it may purchase Charlie. The amount specified at the time was $5.3 million, and the amount was to be paid in three annual instalments, starting in 2022.
However, Air Montenegro gave up on the idea when it became apparent that the total investment required to get the aircraft flying was actually $5.3 million, plus an additional $8 million. Air Montenegro then gave up on the purchase in December 2021 and notified the Government that the sale was not going through because the airline lacked the funds.
What’s the issue?
The chief problem is that the aircraft in question does not have its left motor because this has been taken off as a result of missed payments following the shutting down of Montenegro Airlines. The engine needed is the General Electric GE CF34-10E.
A likely outcome, if the purchase of Charlie goes ahead, is that the Government of Montenegro will dry-lease the aircraft to Air Montenegro. The target is for this arrangement to kick in before the summer season.
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