EBRD to additionally capitalize "Montenegro Airlines"?

Montenegrin national airliner "Montenegro Airlines" will be additionally capitalized in mid-2008.

The media in Montenegro write that 30% of newly issued stocks of the national airliner will be bought by European Bank for Rehabilitation and Development (EBRD), which was the first to express interest in that transaction.

According to the Government's plans, the money obtained during additional capitalization of the national air transportation company will be invested in procurement of 2 airplanes, and the state will keep the majority package of stocks of that company.

The strategy for restructuring and privatization of "Montenegro Airlines" was adopted by the Government at the end of November 2007. The privatization model, according to which the state remains the owner of two thirds of stocks, has not been received very well by large air transportation companies.

Thus, Russian "Aeroflot", which was already seen as certain participant in the tender, will most certainly give up the intention of buying part of stocks of "Montengro Airlines" because of impossibility to control the whole company. Russians are now focused on privatization of Serbian air transportation company "JAT Airways".

Montenegro Airlines Podgorica

EBRD Evropska banka za obnovu i razvoj Beograd

Vlada Crne Gore

Aeroflot Moscow

Air Serbia ad Beograd

Montenegro Airlines

European Bank for Rehabilitation and Development

EBRD

Government of Montenegro

Aeroflot

JAT Airways