Following Incheon’s exit in July, the Montenegrin government announced plans to cancel the tender, revealing a lack of clarity regarding asset valuation, capital requirements, and operational models. Despite years of discussion surrounding the potential concession of these airports, there remains no consensus on how to move forward effectively.
Montenegro’s Airports reported significant passenger traffic, exceeding 3 million travelers in 2025, generating aviation revenue estimated at €49 million with an operating profit around €17 million. However, trade unions indicated total revenues of €56 million and net profits of approximately €13 million after accounting for airline incentives. These figures suggest that while the airports are not in distress, they face pressures due to seasonal fluctuations in demand.
The summer peaks at Tivat airport have raised concerns about capacity constraints affecting terminal operations and access. While Podgorica airport has more room for growth, it must develop routes beyond the peak summer months to ensure sustainability. Wizz Air’s establishment of a base in Podgorica is seen as crucial for enhancing winter flight frequencies by providing additional capacity and employment opportunities.
Montenegro has several potential models for airport management moving forward. One option involves reformed state ownership where Airports of Montenegro retains cash flow and implements a multi-year master plan while managing political interference and ensuring sufficient funds for investment. Another model could involve a redesigned concession process that clarifies service levels, charges, and obligations for bidders while fostering competition in ground handling and retail services.
A third possibility includes forming management or strategic-partner contracts supported by public or multilateral financing. This approach could allow experienced operators to implement effective systems without claiming the entire cash flow over thirty years, thus reducing risk while addressing immediate needs.
As Montenegro prepares for its next steps, it is crucial that the state provides a transparent independent traffic forecast along with necessary capital expenditure assessments and details regarding past failures in the bidding process. A five-year investment plan should be established to address urgent infrastructure needs without delay. The exit of Incheon presents an opportunity for Montenegro to reassess its strategy rather than simply choosing between maintaining a profitable public monopoly or inviting foreign operators. The focus must be on creating an airport company capable of managing capacity effectively while ensuring airlines remain engaged year-round.
