State-owned Air Montenegro has submitted the only offer for Montenegro’s programme to subsidise six European routes from Podgorica, with the Ministry of Transport evaluating a tender worth up to €4.79 million. The programme covers flights from Podgorica to Brussels, Frankfurt, Paris Charles de Gaulle, Amsterdam, Zagreb and Bari. The planned public-service obligation contracts would remain in force until 2030.. The ministry has not yet awarded the routes, while the final scope of the contracts remains subject to evaluation.
Six routes included in the programme
The programme is intended to maintain strategically important air connections that may not remain commercially viable throughout the year without state support. The absence of competing offers leaves Air Montenegro as the only prospective operator under the planned contracts. This limits the ministry’s ability to compare subsidy requirements between different airlines. For Air Montenegro, the proposed services could provide a more predictable revenue base and support aircraft utilisation outside the peak summer season.
Montenegro’s aviation market is highly seasonal, with demand concentrated during the summer tourism period. Maintaining direct services during weaker winter months can be difficult without sufficient business traffic or public support.
Destinations target European and regional connectivity
The six destinations address different connectivity requirements. Brussels would provide direct access to EU institutions, while Frankfurt, Paris and Amsterdam are major European connecting hubs. Zagreb would strengthen regional connectivity, while Bari could support business, tourism and diaspora traffic across the Adriatic.
Airport traffic continues to expand
The programme comes as Montenegro advances investment planning for Podgorica and Tivat airports, which are handling record passenger volumes while facing increasing infrastructure constraints. Airports of Montenegro expects combined traffic at the two airports to exceed 3 million passengers before the end of September, reflecting continued growth in the country’s aviation market. Air Montenegro could benefit from this expansion, although the carrier continues to face structural challenges associated with small national airlines, including limited fleet scale, seasonal demand and competition from larger European airlines.
Tender evaluation will determine subsidy allocation
Subsidised routes can reduce some of these commercial risks but also require assessment of their cost effectiveness for the state. With only one bidder, the ministry has fewer opportunities to compare subsidy requirements between operators. The tender evaluation will therefore need to determine whether Air Montenegro’s proposed operating model provides value for the state while meeting frequency, capacity and reliability requirements.
Public-service obligation contracts are commonly used across Europe for routes considered economically or socially important but unable to generate sufficient commercial traffic. For Montenegro, stronger year-round air links could support tourism diversification, foreign investment and business travel, while reducing dependence on highly seasonal summer flights.
For Air Montenegro, the programme would strengthen its presence at Podgorica Airport and provide greater certainty over several routes through 2030. The final commercial impact will depend on the number of routes awarded, the subsidy allocated to each service and whether passenger demand can eventually reduce reliance on public funding.
