Wednesday, April 7, 2010

Financial woes haunt Croatia Airlines

Riches have wings
Speaking recently to the “Večernji list” newspaper, Ivan Mišetić, the CEO of Croatia Airlines, said that the carrier’s loss for 2009 totalled 27.3 million Euros. Mišetić blames the bad result on the global financial crisis and specifically the decrease in the number of passengers using business class. The head of the Croatian carrier believes that privatisation is the airline’s best and only option. He claims that this is not the question at hand, rather it’s how quickly the carrier will be sold. Mišetić also said that in particular flights from secondary airports in Croatia, such as Dubrovnik, are producing big losses but the Government will, like each and every time, cover the airline’s losses.

Further questioned about Croatia Airlines’ imminent privatisation, Mišetić claims that recent rumours about a possible Lufthansa takeover are premature and speculative but shouldn’t be ruled out. Mišetić criticised Zagreb Airport and its high handling prices which are only enforced onto its biggest customer – Croatia Airlines. He laughed off suggestions that low cost airlines will bring Zagreb substantial passenger growth and doesn’t believe that low costers will particularly hurt Croatia Airlines. Mišetić also claimed that Croatia Airlines is working out its problems with its hub airport in regards to the debt it owes to its home base. “In my 18 years of working at Croatia Airlines I have never seen a tougher and more demanding year”, Mišetić said expressing his hope that the airline will be able to end 2010 with a loss of 13 million Euros.


  1. So, LH's takeover of Croatia is not ruled out. I really hope this doesn't happen. Croatia would be better of joining the Sky Team Alliance. Being in the same alliance with LH, it will never see the day of flying non-stop to North America.

  2. His arguments about LCC sounds that familiar to me...aren't they? Look at the interviews of JAT CEO and you will find out!! They are that much alike!

  3. Yup...both airlines looking for privatisation and trying to sound confident about its position. I am not a big fan of LCCs but I don't see other way people being able to afford flying in ex YUG.

  4. I'm not sure where to send this but according to this:

    BH Airlines is about to buy A319.

  5. BH Airlines A319
    Haha....... This is a classic! Only in EX yu can this happen! BH pilots alreday finished training(money inveseted) for 737NG the aircraft 737-700 is picked.
    A month before summer season starts BH is getting an A319.
    I guess BH managment is choosen in the same maner as OU or JAT managment....along the political party lines. I guess it goes like this: " Hey Ivan, would you like to be a president of Croatia AIrlines ? I mean you have experience! You used to sell airline tickets before you started with us as a presidents secretary."

  6. How much of this comes down to protecting his monopoly, and how much is about the service provided vs their rivals?

    Example: you are a business passenger (so lowest fare for your average pax not applicable), what is enticing you onto the OU product rather than rivals? Is it frequency (which isn't that great), condition of aircraft, on-board service, access to lounges, frequent flier points?

    As for operations at ZAG, given the inferior, inadequate airport (in comparison to nearly every other capital city airport in Europe), the costs should be lower.

    @ Sam

    I think you're slightly off the point about high fares - whilst service does come at a cost, OUs operation base is still stubbornly high... I do agree however that in most instances, fares are too high for the average worker in exYU.

  7. Like most 'traditional' airlines, business class is where they make there money. I guess OU is no different.

    I would love to see OU sell extra cheap fairs, so they can fill empty seats, get more cash flow and introduce more people in the region to the magic of flight.

    Its about building a customer base for the future and not just seeing how much cash we can make this year and, don't worry if we don’t make any, because the gove will always have our back.

    Very bad attitude towards business Mt Mitesic!


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