Sunday, November 3, 2013

Croatia Airlines posts first profit in six years

Croatia Airlines on the road to financial recovery

Croatia Airlines has recorded its first net profit in six years, indicating the airline’s cutting measures are proving successful. In the first nine months of the year, the Croatian carrier managed to turn a profit of 2.6 million euros, its first positive result since 2007. During the same period last year, Croatia Airlines recorded a loss of 1.3 million euros. The result comes despite a drop in revenue of 8%. However, cost cutting measures, introduced as part of the airline’s restructuring program, have seen expenses decline by 10% on last year.

Over the past nine months, Croatia Airlines has seen a decrease in passenger numbers, destination network and fleet size. By the end of September, the Croatian national carrier welcomed 1.4 million passengers on board. The result represents a 3% passenger decrease on domestic flights and a 9% decline on international services. In total, the airline decreased its number of operated flights by 7%. In addition, sales decreased by 13% while international sales were hit by a 19% decline. The airline is currently operating a fleet of thirteen aircraft, though one of its Bombardier Dash 8 Q400 aircraft will be out of action until the end of the year as it undergoes repairs. The airline’s results have also been significantly impacted by a ten day industrial walk out by staff in May.

Croatia Airlines’ encouraging financial performance so far in 2013 is a strong reference for potential strategic partners. Last week the Croatian government began the carrier’s privatisation process. This year the airline embarked on a restructuring program which is set to last until 2015 and aims to see Croatia Airlines back into profitability, which it has achieved. In 2012 the Croatian carrier recorded a loss of 62.6 million euros, its worst result on record. It last posted a profit of 131.000 euros in 2007.

43 comments:

  1. I stand to my words. Croatia Airlines will be sold and it will find a good "mother".

    There's to much potential in here, like in Air Serbia.

    I'm from Croatia, but I don't like this "war shit" and we are all humans.

    Air Serbia can easily serve eastern part of europe, Croatia Airlines can utilise it's slots to full maximum and we can all see great sucess in couple of years.

    Why not code share between two of the airlines? Maybe when some people change mentality.

    Nevertheless, bright future ahead of Croatia, new airport in Zagreb.

    Plus, little inside info :) , Croatia Tehnical Services has just begun working od D Check for Thomas Cook, more are coming, and that's "pure money" in play.

    Good morning to all aviation lovers out there!

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    1. +1
      I agree with you that OU and JU should code-share in the future on some routes if it would be benefitial for both. It may not happen now, but it will in a few years I believe.
      I strongly believe there is enough room in the region for both JU and OU to prosper as decent airlines, and it is good competition wise.
      Regards from BEG and great day to everyone here.

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    2. Before they even think about code-sharing maybe they should first think about coordinating their flights from the coast to Belgrade. ;)
      OU should launch Pula to Belgrade flights this summer since Air Serbia won't.

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    3. Does anyone have any inside info about companies who are willing to purchase a minority stake in Croatia Airlines?

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  2. I wonder if they would have reached €3,000,000 if there wasn't for the accident in Zurich. Still, this is a good piece of news.

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    1. The result is for the first nine months, whereas the accident happened on 27th September. The difference can't be very big.

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    2. + insurance is covering any damage to the aircraft.

      So it won't impact on operation or profits much.

      OU making profits is a good news, they still need to pay back a lot, but at this rate yes it can be done by 2017 as projected,.

      Although I'd love to see a good partner taking over, Korean Air would be a fine airline to talk to, they seem to have made Czech Air profitable again and I'm sure deal can be reached with them over how best to sort Croatian Airlines + a direct year round connection can be established with Seoul, with Korean Air flying on its Prague Zagreb Seoul route, or Seoul - Zagreb - Prague Seoul.

      Route wold be profitable as Zagreb is becoming increasingly popular city brake destination as well as business destination even for major Korean firms which are now increasingly investing in to Croatia, with Samsung, Hyunadai and Dewoo all announcing major investments in to Croatia in coming years.

      Alternatively, Singapore Air, Malaysian Air, EVA air and China Airlines (Taiwan) would also be good partners. Failing that BA and AF groups could easily take over which seems more likely outcome now.








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    3. There is no way Korean would be remotely interested in Croatian Airlines. CSA made sense as they were in the same alliance and KE already flew into Prague- not to mention that there is a lot of Korean investment in the Czech Republic. The main difference is that for Korean, Prague was a business heavy route while Zagreb would be a VFR one which are notorious for being low-yielding. I do not see any of those airlines with the exception of China Southern Airlines maybe considering purchasing a minority stake in OU.

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  3. Good news from OU. Hopefully it wasn't "creative" accounting that led to this, but true economics.

    Off topic - seems that Air Serbia will hardly win in a most punctual airline contest. They can't seem to have any plane depart on time. Different name, but they can keep the Joke About Time slogan...

    London - 2 hour delay: http://www.beg.aero/putnici/letovi.231.html?flightId=226841
    Athens - 1 hour delay: http://www.beg.aero/putnici/letovi.231.html?flightId=226855
    Dusseldorf - 2 hour delay: http://www.beg.aero/putnici/letovi.231.html?flightId=226821

    Not to mention that one single flight has departed with a delay of at least 20 minutes

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    1. Btw, any info when will Air Serbia introduce online check-in. It is the 21st century after all

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    2. Yeah but at least their departures are seeing less delays, check morning departures which were not that bad. Yes, those three are seeing rather large delays but I am sure that in the coming days thing will go back to normal. Especially when the second A319 enters regular service since it seems that it is only flying to AUH for the time being.
      The morning A319 flight Milan was 17 minutes late which is not that bad.

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    3. Btw this topic is about Croatia Airlines. There is an Air Serbia topic on the left hand side, third topic from the top

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    4. So what? We discussed off topic things yesterday as well, even if it was a Serbian piece of news. So what's your problem?

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    5. The problem is you are discussing the exact same peace of news in every single topic. You have an active topic about Air Serbia. For once I would like to read the comment section about another airline/airport without reading your comment whether the flight to London is delayed.

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    6. Well, no one is forcing you to read it. Just skip it. It's not our problem that there are rarely enough comments on topics that are not related to Serbia. Plus, if Serbs have absolutely no problem to have off topics on days when its Serbian news I don't see why you, Croats, should. Take a breath and chill out.

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    7. I don’t have a problem with off topic if it is remotely interesting but your are writing about a flight delay every other day. Who cares. It happens everywhere. And I don’t know what you expected. Air Serbia is still JAT, the majority of the planes are from JAT so until that changes, which I believe is next year you will be seeing pretty much the same as you did with JAT.

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    8. The whole point is that the first few days have been a disaster for Air Serbia because of all the delays. We are merely discussing how the situation is slowly being restored to normality.
      In my opinion this whole story with the delays should have been pursued so as to come up with an adequate answer why it has happened. Is it because of the new catering system, as the airline claims, or is it because of Jat's old fleet. Especially since the A319 have been seeing delays as well.

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    9. I don't think that commenting OT is a bad thing. Reading comments is just as fun and informative as reading the article itself...

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    10. Delays are fine, especially those of 10 to 20 minutes, transition period, new catering, etc. it is understandable, however, what is scandalous is that Air Serbia is not informing public about them, we are just seeing them on airports website. They are picking up the worst of old Jat, and not improving their relation towards "Guests". If this was happening some 5 to 6 months ago all newspapers and portals would be filled with "Catastrophic delays", etc. Now it is nowhere, and passengers who are unlucky to be on those flights can just wait and despair.

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    11. He changed the pic!!! Finally!

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    12. Vasingtonskver, why would they inform their passengers if delays are up to 2 hours? I do not see the point. It's not like the flights are delayed by 5 or 7 hours, which would make sense but not this.

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    13. You can now apply for UAE visa via Air Serbia's website.

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    14. The Visas soon should be abolished.

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    15. Yeah but maybe it can be useful for regional passengers. It makes me wonder if it will work for other countries as well. As in, if you can get an UAE visa via Air Serbia if you are flying via Belgrade.

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    16. Correct!
      Maybe Serbian citizens will not need a visa in future but Slovenians etc.will do so.
      And Air Serbia will make it for its passengers as convenient as possible by offering that service!

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    17. The same way one can get a visa when visiting Dubai with Emirates. It's really inconvenient otherwise since UAE doesn't have embassies in many countries.

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  4. British Airways seems to be sending the A319 to Zagreb these days, shame. I hoped they could at least send their A320 after their super successful summer season. They used to send their A321 very often.

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    1. Sorry, this piece of information is not correct. BA has sent their 321 to ZAG only once this year (April), and 320s were sent maybe 5 to 10 times in total of the entire summer season. It's mostly 319s that have been operating this route.

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  5. It is naive believing that creative accounting (particularly preceding the soon privatization) can hide ugly face of reality.
    I would say that this is another case of OU related spinning. Recently Croatian press reported on Etihad and Turkish interest in OU; both companies denied this immediately.

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    1. By Croatia press you mean "Jutarnji list"? The worst papers in region, not only in Croatia?!

      They main hobby is to make story up and publish it as "ekskluzivna priča"...

      Don't trust anyone.
      Not ONCE did minister Hajdaš Dončić mentioned any company by name but Garuda (and they mentioned Croatia Airlines case themselves) and he said "4 companies in total of which one is Garuda".

      Večernji list is probably only newspaper in Croatia that you can trust in, but not always so...
      You get the point :)

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  6. Does anybody know how many times a week Easyjet flies to Zagreb in winter and summer?
    And why did they suspend Paris flights?
    Thanks in advance.

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    1. I think 4 weekly flights to Zagreb but this might increase as demand for low cost flights increase now that Croatia is in the EU and both markets, Croatian and British are exiting the recession with economic growth projected for 2014 and 2015.

      Paris Route was canned cause it wasn't profitable, Croatian has 10 flights to Paris and AF about same to Zagreb, EasyJet came at bad time in worst recession since 1930s and with Croats mainly traveling to Germany and the UK there was little demand for the route, but things can change and are changing so the route can be re-established soon, perhaps in 2015.



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    2. Winter time LGW-ZAG three times/week (Mon, Fri, Sun) and summer five times/week (Mon, Tue, Thu, Fri, Sun). Paris flights were suspended for the same reason as Dortmund flights, poor load factor.

      Alex London

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    3. Maybe Easyjet should try Geneva-Zagreb?
      Do you think the same?
      I think if Belgrade can do so then Zagreb should follow.

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    4. And from where that axiom comes, that a route working from BEG should work from Zagreb as well and that "Zag should follow"? Can you explain that to us?

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    5. very simple, same disaspora everywhere

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  7. Not interesting for everyone but here is an interview of the Iran Air's CEO Farhad Parvaresh, enjoy:

    http://www.iranair.com/Portal/File/S...be90a6-920b-4fe4-a243-880dcb5dbd76

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    1. Iran Air's aircraft can be seen in Belgrade on Monday, Wednesday and Saturday around 17:00.

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    2. Something is wrong with the link. I cant open it.
      I have one question. If Iran air is landing in Belgrade for refueling why it doesnt make it as a destination and transport the passangers to Teheran?

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    3. You can get the link from the current discussion on A.net about the subject:

      http://www.airliners.net/aviation-forums/general_aviation/read.main/5911487/#5

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    4. Thanx! I`m still wondering why they dont get passangers from BEG, LJU,BUD etc. if they are landing over there for refueling.. Someone know the answer?

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    5. There are many reasons, ranging from political to financial all the way through "no body ever thought of and they have better things to think about such as keeping those birds flying and procuring 'new' a/c" etc. I think you'll find quite a few answers in the interview i posted.

      Very simply, Iran Air is banned from the GDS and wouldn't be able to sell those flights and any onward connections from IKA, unless they were to open an office in those respective countries, what would probably be too much of an investment for a barely existent O&D and highly competitive (Europe-Asia) market.

      I hope it's more clear.

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  8. Air Serbia A319 Novak Djoković was today flying LYBE-LIML and what sursprised me Slovenian pilots were flying. Does anyone knows why?

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