Wednesday, May 22, 2013

Croatia Airlines strike ends

Croatia Airlines cabin crew back at work

Croatia Airlines’ longest industrial dispute came to an end yesterday afternoon after cabin crew members decided to discontinue their eight day strike which has paralysed the carrier. For the first time in over a week flights today will operate normally. Lufthansa, Brussels Airlines and SAS Scandinavian Airlines, which suspended their codeshare arrangements with the Croatian carrier, will reinstate their flight numbers as of today. However, the fallout from the strike is set to hit the airline hard. Croatia Airlines is estimated to have lost over one million euros in the past week, at a time when it looks to cut costs and restructure its business.

Cabin crew, which went on strike unhappy over pay and holiday cuts outlined in the new collective agreement, have not in fact agreed to sign the document. Instead, together with the management, the two sides have agreed to discuss the terms of the collective agreement during which crew will work normally. Cabin crew has agreed to a 9% pay cut, while the management will reverse its decision to dismiss 42 crew members for failing to show up to work on May 1 and 2 after they all took sick leave. “We have agreed to end the strike and to a 9% pay cut, which is less than was initially planned”, Ivana Lojo from the strike committee said.

Pilots, who have been on strike for seven days, are also believed to have influenced their cabin crew colleagues to end their industrial action. Croatia Airlines’ management says that the concessions made to the crew will not impact on the carrier’s restructuring program. It says that passengers should not be fearful as the airline will not declare bankruptcy. The management adds that if finances do not improve its last resort will be to sell some of its aircraft as well as land owned near Zagreb Airport.

10 comments:

  1. So the trolley dollies achieved very little in the end?

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  2. Croatian Airlines really needs to restructure, ok they have loads of assets, (2.75 billion kuna according to their pdf finical reports) much of it is in land and property assets which they have load of. One way for CroAir to restructure is to fire half of the management and staff over next 9 months and end the corruption at the airline by privatizing the airline, at least sell off 45% steak in the airline, that would bring 2 billion kuna for the state and the airline which could than pay off its debt to the state (1 billion kuna) and start functioning like a proper airline.

    Croatian airlines can be a truly great airline only if smart people are in charge at the helm of the airline, if you have corrupt idiots than things won;t change for a long time.

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  3. I’ve gotta say I love the global aviation news section today. A blunder of epic proportions for TK.

    ReplyDelete
    Replies
    1. What a low life you are.

      At least TK cover both destinations and continents unlike your "national" airline.

      Delete
    2. A low life because this is a blunder? What are you on about?!

      Delete
    3. Wingo the TK mascotMay 23, 2013 at 12:14 AM

      TK is the dumbest airline out there and no surpsie such things happen to them.

      Delete
  4. Confronting the fact the situation would force the government to wind up the airline, the dollies ran out of steam. What a pity they could have been the first dollies that closed up an airline.

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  5. I suspect that Croatia Airlines lost at least 3M euros as a result of the strike, given the short term cost for wet leases - lost revenue from people hesitating to book with the airline will have a short-term effect as well. It would be difficult to quantify the opportunity cost.

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  6. Stories coming out was that it was in fact cheaper for OU to run the leased aircraft than there own metal. If this is true than this is a scary scenario.

    Also, after reading the today's story it looks like OU was never near being bankrupt due to the capital it has in assets.

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  7. I think any story that it was cheaper to operate during the strike is media spin inspired to avoid accountability for what happened. On the other hand, statements about bankruptcy issued by the government more of a method to generate public pressure for the strike to end!

    ReplyDelete

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