Montenegro Airlines’ E195 Remains Grounded In Podgorica

The governments of Brazil and Montenegro are currently collaborating on a solution for the Embraer E195 aircraft, which was damaged when some of its parts were allegedly stolen at Podgorica Airport.

Montenegro Airlines is still in debt from purchasing this aircraft. However, the airline has declared bankruptcy. The aircraft cannot be used by its successor, Air Montenegro, because its certificates have expired. And the Brazilian bank that owns the E195 does not want to repossess it since it would have to pay to restore it to flying condition.

Montenegro Airlines purchased an Embraer E195 aeroplane from Embraer in 2010 with the assistance of BNDS, a Brazilian state bank. The plane is known as Charlie since its registration number is 4O-AOC. Montenegro Airlines borrowed $38 million to purchase this E195.

However, at its bankruptcy, only $33 million had been paid off, leaving $5 million owing. A Brazilian government group arrived in Montenegro last week to tackle this matter. They were on their way to Podgorica Airport (TGD) to assess and photograph the E195.

Montenegro Airlines' E195 Remains Grounded In Podgorica
The battered “Charlie” is waiting for an extra payment image @ Luka Zekovic.

Montenegro Airlines’ E195 Is Damaged

Montenegro Airlines ceased operations in December 2020 when the newly elected Montenegrin government decided to shut it down. The company formally declared bankruptcy in April 2021, allowing BNDS to seize the aircraft due to the unpaid $5 million.

However, the plane was subsequently damaged: it was robbed of its parts. This occurred almost a year ago, yet the perpetrators have yet to be identified. The board of directors managing Montenegro Airlines’ bankruptcy administration has filed criminal charges against unknown individuals.

Since Montenegro is now undergoing political turmoil, it is believed that the theft was an intentional act of sabotage. Despite being under bankruptcy administration, Montenegro Airlines does not get along well with Air Montenegro, the country’s new flag carrier that the newly elected government established in 2021 after closing Montenegro Airlines in 2020. Not all of Montenegro Airlines’ assets were transferred to Air Montenegro when it filed for bankruptcy.

As an alternative, the bankruptcy administrator intended to revive Montenegro Airlines first, even though the country’s government had already established a new flag carrier, Air Montenegro. Even two court cases were brought against Air Montenegro by Montenegro Airlines.

There are other issues with the aeroplane that go beyond the missing parts. The aircraft’s last flight occurred on December 26, 2020, and most of its technical certification is now out of date.

To get aircraft back in the air, the new owner must first determine what parts are missing and then acquire and install them. They also need to put the E195 through a thorough technical inspection and complete verification of all its components.

In the coming days, the government should decide on purchasing the plane that flew for “Montenegro Airlines” almost two years ago. Let us know your thought about this in the comment below!

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