Montenegro Airlines is to cease all operations, attributing the decision to the refusal of the country’s government to continue supporting the carrier. It states that it will “completely suspend” its services from 26 December. Montenegro Airlines has apologised to passengers for the problems this will cause over the next few weeks, adding its gratitude for “the years of trust, travel and friendship”. “Safety of passengers, crew and aircraft has been a priority for the company from its inception,” says the carrier, adding that it is unable to accept the risks associated with a continuation of services. Montenegro Airlines, which is state-owned, operates a small regional fleet comprising Embraer 195 and Fokker 100s. Following a meeting to discuss various national topics on 24 December, the Montenegrin government says the airline’s debts are such that it faced the “possibility of confiscation of aircraft” from 26 December. The government says the company’s business is suffering from “numerous omissions and shortcomings”, adding that the social element is “serious”, with monthly salaries to employees last paid in September. Among the debts owed, it says, are €1.2 million to lessors of its E195s plus another €600,000 relating to the engines. The government adds that the company also owes €500,000 to Belgrade airport and €160,000 to air navigation organisation Eurocontrol. Liquidation of the airline is an “inevitability”, according to the government. But it adds that a national carrier is of “unquestionable importance” to the country, and it signals that it will establish a new airline – although this will not occur for at least six to nine months.

Air Canada says that one of its reactivated Boeing 737 Max jets experienced an engine issue during a repositioning flight, bringing renewed scrutiny to the beleaguered type just weeks after it was recertificated following a 20-month grounding.
The aircraft was on a non-revenue flight from a storage facility in Marana, Arizona to Air Canada’s home base in Montreal on 22 December, says the carrier. On board were three crew and no other passengers. “Shortly after take-off, the pilots received an engine indication and, as part of normal operating procedures in such situations, decided to shut down one engine,” the airline told FlightGlobal. “The aircraft then diverted to Tucson, where it landed normally and remains.” According to Cirium fleets data, the airline has 24 of the aircraft with another 16 on order with Boeing. In November, the Federal Aviation Administration recertificated the aircraft with a long-awaited airworthiness directive (AD) after Boeing made some design and software changes, allowing it to re-enter revenue service in the USA. Canadian civil aviation regulator Transport Canada said at the time that it would also approve the type “soon”. On 17 December the regulator “validated” the airframer’s updates, indicating that it would lift the jet’s grounding in that jurisdiction in early 2021. “In January 2021, the department expects to issue a Canadian airworthiness directive which will stipulate the Canadian design changes that must be incorporated in Canadian aircraft,” Transport Canada added. Airlines around the world were forced to remove the 737 Max from their schedules in March 2019, after two fatal accidents killed 346 people. Since the ungrounding, Latin American carriers Gol and Aeromexico have returned the type to revenue service. In the USA, American Airlines will resume Max flights on 29 December, with the carrier planning to operate the aircraft on a round trip between Miami and New York’s LaGuardia airport. Airlines will bring the type back into its schedule on 11 February, and all-Boeing carrier Southwest Airlines expects to have it flying in revenue service by March.

UK low-cost carrier EasyJet has outlined a contingency plan for meeting EU ownership requirements after the scheduled end of the post-Brexit transition period on 31 December. The board-approved plan is intended to ensure that EasyJet can continue flying under its EU operating licences. To comply with the rules governing these, the airline needs a minimum EU ownership of 50% plus one share, but as of 23 December the figure stands at 47.02% if UK nationals are excluded. The contingency plan involves suspension of some shareholders' voting rights. Only "a small number of shares of non-EU nationals" would be affected by the measure, says EasyJet. It has targeted a minimum EU ownership of 50.5%, and its contingency plan kicks in if the level falls below this. Affected shareholders would receive notices about the suspension of their voting rights. EasyJet says it does not have a date for when it could implement the contingency plan, noting that the timing would "ultimately depend on the outcome of negotiations on the future EU-UK aviation relationship".