Montenegro’s Ministry of Transport is currently analyzing air routes that could be designated as Public Service Obligation (PSO) lines, prioritizing connections that would better link the country to major European centers, especially Brussels, due to its importance in the EU integration process.
PSO is a scheme where the government offers subsidies to airlines through public tenders, requiring the winning carrier to operate specific routes for a set period in exchange for compensation. The Montenegrin Parliament adopted amendments to the Air Traffic Law in May to enable the introduction of such routes.
The Ministry has prepared a draft regulation outlining the criteria and procedures for declaring PSO routes and operating air services, pending review by the Secretariat for Legislation and Ministry of Finance before submission to the Government for approval.
Typically, only one operator serves each PSO route to ensure quality and efficiency. The number of PSO routes will depend on market demand, budget availability, and strategic priorities, with exact figures to be determined after analysis and tender processes.
Routes under consideration include connections to key administrative, economic, and transport hubs in Europe, with particular focus on Brussels due to its role in Montenegro’s EU accession.
Selection of PSO routes will follow EU regulations, considering factors such as lack of market interest, the need to connect remote or underserved areas, and investment justification. The Ministry emphasizes that implementation will comply with Montenegrin and EU laws, especially EU Regulation No. 1008/2008.
Costs related to the PSO model will depend on the number of routes, frequency, and service duration, aligned with the state budget and EU rules. The initiative aims to improve Montenegro’s air connectivity, facilitate tourism, enhance passenger and cargo transport, and increase airport utilization.
The introduction of PSO routes was proposed in January by the parliamentary group of the Democratic People’s Party (DNP).
