Montenegro aviation enters new era with arrival of Ryanair

Montenegro's small aviation market has been witness to some interesting developments since the Jun-2013 entry of Ryanair. The Ireland-based carrier is now the sole LCC operating in Montenegro with a single route however it has expressed interest in opening up the market further. Other European LCCs will be watching Ryanair's movements in the market.

The small Southeastern European nation of just under 14,000km2 has a population of only about 620,000. Montenegro's 2012 GDP was USD4.231 billion, which has significantly increased since 2000 when it was USD1.707 billion, according to World Bank data. Air traffic to/from the country has increased from just under 700,000 passengers in 2005 to 1.345 million passengers in 2012.

Montenegro Airlines is the national carrier and sole scheduled operator. It currently provides around 41% of total seat capacity to/from Montenegro, according to CAPA and Innovata data. Fourteen foreign full-service carriers currently serve the country, accounting for around 58% of capacity while Ryanair, the only LCC in the market, currently contributes around 1% of seat capacity.