High prices for return flights on the Belgrade–Tivat and Belgrade–Podgorica routes are expected to end as Serbia and Montenegro align their aviation laws with European Union (EU) regulations. Although the existing bilateral agreement allowing only national airlines to operate these routes will remain, it must be adjusted to comply with EU rules that prohibit discrimination and monopolies.
The EU’s Open Skies Agreement establishes a common European aviation area based on equal competition and bans national discrimination. Low-cost carriers have not operated flights between Serbia and Montenegro mainly because the bilateral agreement restricts these routes to national airlines. However, these budget airlines do fly from Serbia and Montenegro to other European cities thanks to the Open Skies framework.
Experts note that while national carriers hold a monopoly on this route, the completion of the highway between Serbia and Montenegro may create competition for air travel due to comparable travel times. The EU also limits state aid to national airlines, reducing their ability to maintain monopolies through subsidies.
Monopolies are prohibited under EU law, and accession negotiations often include conditions to eliminate such practices. Failure to comply can lead to political pressure, economic sanctions, or legal action.
Analysts argue that monopolies in aviation and other sectors hinder Serbia’s and Montenegro’s EU integration. These monopolies benefit a small group that finances political resistance to EU accession to preserve their profits.
Once Montenegro joins the EU, it will become part of a single market where such monopolies cannot exist. This will likely open the market to low-cost carriers, resulting in more affordable air travel options for consumers.
