Friday, May 4, 2012

Passenger slump at Croatia Airlines

Passenger numbers down while losses steady
Croatia Airlines carried 295.014 passengers in the first quarter of 2012, a 2% decrease compared to the same period last year. The airline welcomed 212.727 passengers on international flights while 80.607 passengers boarded the carrier’s domestic services. Another 1.680 passengers were carried on charter flights. The airline blames the global financial crisis and strong competition for the passenger slump. However, over the past three months, Croatia Airlines saw its staff stage a 24 hour strike, cancelling numerous flights, and endured negative publicity at the beginning of the year as the spat between pilots and the management became public.

In the first quarter of the year, Croatia Airlines’ overall loss amounted to 12.3 million euros, which is roughly the same as last year. The airline warns that the price of fuel has increased in 2012. During the same period last year the airline had to fork out $962 for a tonne of fuel while this year it spent $1.069 for the same amount.

Croatia Airlines is currently undergoing a restructuring process aimed at decreasing losses and increasing efficiency. The government has said that after the restructuring is completed it will consider privatising the national carrier. Restructuring began on March 26 and will last for up to a year. It will entail financial and operative restructuring as well as the creation of a strategic development plan, which will be drafted by the consultancy firms KPMG, BDO and Intel following detailed analysis of the carrier’s business.

15 comments:

  1. 2% is not a slump and without the strike and high fuel prices, it might have been a 2% increase. Nevertheless, the restructuring is needed and privatization wouldn't hurt either.

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    1. of course. One day of strike whan some 30% of flights were on because of law obligation + some flights were on because of renting planes (Adria) and because of that we lost 2% of pax. Hahahaha... Tipical CTN management bullshit

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    2. Yes but who would buy them? Lufthansa? I highly doubt Lufthansa would even consider it. Not only did they lose a lot of money with BMI but their affiliates SWISS and Austrian Airlines have lost money in Q1. So what good would Lufthansa have from buying OU? Nothing.

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  2. Slump hmm... and still i can't book 2 tickets for AMS-ZAG in the summer, all the flights are full :/

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  3. More of the same it seems for the exYUs leading carrier. Can the carrier not hedge a % of its fuel bill like most operators elsewhere in the world?

    These extra seats in the 319s have to return a profit on the busy routes (eg AMS, CPH, IST), and fast...

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  4. Are the business class seats at OU the same as the economy ones?

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    1. Yes, just on A319 and A320 they convert middle seat into nice blue table. They have really nice business class service.

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    2. Thanks. I thought it was like that. I think most European airlines have it like that now. Is the situation the same on JP/YM? I know JU has different seats in business compared to economy.

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    3. Olympic Air does to, also I am not sure but I think that Turkish Airlines has a dedicated business class section.

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  5. On the positive note...QND is opening in 2015!

    http://www.b92.net/biz/vesti/srbija.php?yyyy=2012&mm=05&dd=04&nav_id=606419

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    Replies
    1. Kretenizam poslednje vrste.

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    2. Последњи очајни покушај ДСа да добије још кој глас пред изборе сутра.

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  6. New Ryanair's flights to Belgrade North airport.

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    Replies
    1. ahhahahaha, genijalno!

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  7. How ugly are those RECARO seats?

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