Etihad, El Al and Arkia Israel interested in Montenegro Airlines stake sale

Montenegro's Deputy Finance Minister Ivan Petrovic confirmed Etihad Airways, El Al Israel Airlines and Arkia Israel Airlines purchased tender documentation for the 30% takeover of Montenegro Airlines (Bloomberg/Gulf Today, 15-Nov-2010). The tender will close on 15-Dec-2010. The state owned a 99.88% stake in the carrier and is offering the minority stake along with an option to increase the holding in two years, as well as broad management rights. Montenegro Airlines operates eight aircraft with a total of 869 seats and operates to 16 destinations. In 2009, it reported revenues of EUR60 million and a negative EBITDAR of EUR1.2 million. Mr Petrovic stated Montenegro did not set a minimum price for the stake although the government's Privatisation Council has valued the entire company at EUR25.68 million.