Monday, May 28, 2012

Croatia and Adria merger talks to begin

Government announces merger talks
The Croatian Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić has announced that talks with the Slovenian national carrier, Adria Airways, regarding a possible merger will begin soon. Speaking to the Croatian media, Hajdaš Dončić says that Croatia Airlines and Adria should create a holding company with both airlines to maintain their own brands. However, the two carriers would share routes, passengers, code share agreements and slots all in the name of cutting costs. The first such proposal by the Minister included Montenegro Airlines within the holding company, however, it now seems that there wouldn’t be a place for the Montenegrin carrier in this business venture.

According to the Minister, Croatia Airlines will be restructured this year. “The company can expect major changes”, he says. Hajdaš Dončić notes that Croatia needs a national carrier but it shouldn’t function the way it has up until now. Foreign consultancy firms are working on the company’s restructuring program. The Minister avoided answering when the carrier’s new management will be named. The government has proposed for Krešimir Kučko to be appointed as CEO, to the dissatisfaction of many employees. Furthermore, it has been confirmed that Croatia Airlines’ delivery of four new Airbus A319s, which were supposed to arrive next year, has been pushed back into late 2015 and early 2016. The request for the delivery delay was made by Croatia Airlines itself.

The possible merger between Croatia Airlines and Adria Airways would make the most sense out of all the merger plans which have been proposed in the aviation industry in the region recently. Both have similar fleets and both are part of Star Alliance. The two companies already have a fleet exchange agreement, with one of Adria’s Airbus jets operating Croatia Airlines’ weekend flights to Istanbul. Furthermore, Croatia will join Slovenia in the European Union next summer.

13 comments:

  1. Krešimir Kucko is definitly out!

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  2. well better would be to sell adria to croatians they would like to run the BIG COMPANY so the Slovenes wouldnt have to pay debts from taxes! It will run just so long as Lufthansa will let them so...

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  3. In that case there is no way that ownership in company would be 50:50. Croatia is much bigger and it should be some 65:35%.

    That company is on because Lufthansa ask for it, and of course it will run just as long as Lufthansa will wish.

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  4. Lufthansa South East Europe regional for Slo,Cro,BiH
    Jat for Srb,Mne and Mkd!
    All happy:)

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  5. What would a 'holding company' actually achieve for these two loss-making carriers if they are still allowed to make independent decisions and run competitive routes??

    While they do currently carry 60+% of exYU traffic (and likely hold that much or more of the GDP and tourism figures too depsite their small population), it does nothing to solve the inherent problems facing each airline. Also, a decent shuttle will need to be provided between both airport 'hubs' (I used that term loosely!) and respective cities...

    That said, if this holding company could get rid of JPs thirsty CR2s and replace them with the 4 Q400s on order with OU it would be a step in the right direction and provide just 3 plane types in the combined fleet: ~70-seat Q400s, ~90-seat CR9s and ~130-seat 319s. A modern fleet for the modern age if nothing else!

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  6. frequentflyerMay 28, 2012 1:52 PM
    What would a 'holding company' actually achieve for these two loss-making carriers if they are still allowed to make independent decisions and run competitive routes??


    Well OU is still not flying to Slovenia.... where is a problem? Slovenia need: DBX-LJU in summer season 2 times per week!

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    1. well i would be more then happy having 2weekly flights LJU-DXB (Dubai :).DBX i doubt it exist.so you probably meant DBV-Dubrovnik :)
      and i agree with frequentflyer, even if any kind of intra exYU merger done, JP&OU is the most logical solution, they each have to solve their own problems first.and also LJU&ZAG are probably to close.another thing that is not really perspective is that both carriers have extremly seasonal traffic.

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  7. Of topic, sory. Good post after a long time about JAT and BEG.

    http://aviationoverview.wordpress.com/

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    Replies
    1. Ah...finally!
      Nice to hear from Aviationoverview again.
      Good read!

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    2. Oh yes!! Nice to see it is back, I missed it. I signed up for their updates :)

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    3. Also they have updated their random facts from teh serbian market. The post on airBaltic is cool.

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  8. Mergers need to happen in Ex-yu. JAT may be the only one that may remain untouched but also not very successful. If there is a merged airline with at least three airlines there would be a possibility of savings by attricion of lines and reduction in expenses. Also, a good agreement system between all ex-yu airlines would have them act as a block rather than compete, good luck. It is amazing how Adria did not grow within the EU and after having such a good start.

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  9. When and if Serbia ever joins the EU and the Star Alliance, they will be more than welcome to join the Croatia and Adria merger.....Good luck with your delusional new president elect lol

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