El Al in talks to buy 30% stake in Montenegro Airlines

Montenegro Airlines suffered a €701,000 operating loss in 2008 despite a 33% year-over-year increase in revenue to €61 million
 
Officials from Israel's El Al and Montenegro Airlines confirmed last Monday thatEl Al is negotiating with the Montenegrin government for the purchase of 30% of Montenegro Airlines, which operates one Embraer E-195 and five Fokker F100s and is in need of cash to overhaul its tiny fleet.
 
Zoran Djurisic, chairman of Montenegro Airlines, said the company was also negotiating the sale of stakes to Slovenian airline Adria and Russia's Air Union. El Al President, Haim Romano, told reporters in Podgorica that talks will continue, while Chairman Zoran Djurisic said that the sale is expected to be finalized before year end.
 
Montenegro Airlines suffered a €701,000 ($923,925) operating loss in 2008 despite a 33% year-over-year increase in revenue to €61 million.
 
El Al is understood to be the most interested party and the government eventually intends to sell a majority of the carrier to the party which acquires the initial 30% stake.