Wednesday, July 9, 2014

Croatia Airlines eyes Embraer order

Croatia Airlines CEO rules out swift privatisation

The CEO of Croatia Airlines, Krešimir Kučko, has said the national carrier will seek a strategic partner “in the next few years”, putting an end to speculation whether the government will resume its search for a potential investor this summer, as announced earlier, following a failed attempt in 2013. Speaking at the Russia & CIS Airfinance Conference in Moscow recently, Mr. Kučko said the national carrier will expand its fleet following the completion of its four year restructuring programme at the end of this year. He noted that Croatia Airlines has managed to save 35 million US dollars as a result of its cost cutting measures and has successfully reprogrammed several of its loans.

The CEO of Croatia’s national carrier echoed earlier statements that his airline is need of new aircraft. “If Croatia Airlines was to buy more aircraft today it would choose an Embraer model, but other manufacturers will be considered when the time comes”, Mr. Kučko said. “What we are missing now is 100-seaters”, he added. In July 2013, the carrier’s CEO said the airline is planning on purchasing Embraer aircraft to replace part of its Airbus fleet. Croatia Airlines has never operated Embraer jets in its 25-year history and would make it the third aircraft type in its fleet, alongside Airbus and Bombardier, if it chooses to select the Brazilian manufacturer.

As EX-YU Aviation News learns, Croatia Airlines is looking at adding three new aircraft to its fleet from next year. A 100-seat jet would be best suited for the airline as it can operate with a profit not only during the summer but also during the slower winter months. Croatia Airlines currently has four A319s on order, however, the carrier has delayed their arrival until further notice and has on several occasions hinted at completely cancelling the order. Originally, the new Airbus jets were to be delivered from 2013 onwards. Last year, Croatia Airlines retired one of its Airbus A320s, leaving it with twelve active aircraft in the fleet.

60 comments:

  1. Embraer su sjajni avioni, osecaj leteti sa njima je isto jako lep i mnogo udoban za putnike! Takav bi avion voleo videti u floti Air Serbia!

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  2. OT: Not yet official but confirmed - Adria will get positive opinion today. EU decided that state aid was in accordance to EU law.

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    1. great news!!

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    2. I's official: http://europa.eu/rapid/press-release_IP-14-788_en.htm?locale=en
      :)

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    3. OU won't be getting Embraer aircraft, 4 Airbus A319 are on order and these will join the fleet in 2017, before that it is possible OU to short lease few aircraft in summers and Embraer might figure out in this picture, but OU needs to finish restructuring and pay all its loans back, consolidate its operations and running costs need to be brought under control.

      Until that happens no new aircraft or new lines, OU will continue as it has till the end of 2014 and first quarter of 2015, possible new aircraft might be leased for summer 2015, OU plans to increase its summer schedule by 20% in 2015 out of Zagreb primarily, with at least 15 weekly departures for Paris, Amsterdam, Zurich and Rome and 20 for London, Vienna and introduction of service to Prague and Stockholm wit 3 weekly flights.

      Croatian government held talks with Bombardier earlier this year and it is quite likely Croatia/OU will place an order for CS100 aircraft in 2015 for deliveries around 2017/18, atm 3-6 aircraft are being looked at, total package being around $200-320 million on long term lease if 6 aircraft are chosen.

      Two aircraft types per fleet will be maintained with airbus fleet to increase to 10 aircraft and Bombardier fleet to around 10 aircraft as well by 2020.


      Two A320s might be sold before 2020 but there are no plans to retire these aircraft before 2018 what ever the case.

      OU is also increasing frequency this winter on some of its routes, Paris, Amsterdam, Zurich, London, Rome and Vienna will see frequency increased by up to 20%, Munich and Frankfurt by 10%.

      Arrival of KLM, and impending arrival of Alitalia, and other EU carriers has given OU pause for thought.


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    4. So what are you saying. Kucko just made up the statement about E-jets for the fun of it? If he said they are getting them and you are claiming they are not.

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    5. @AnonymousJuly 9, 2014 at 4:21 PM

      OU might wet lease few to cover summer 2015, that is all, Croatian tourism is booming and growing at ~10% yoy, with OU being stretched to its limits, but no E-jets will be purchased, new or other.

      Fleet of 6 A319/320 and 6Q400s will remain for a foreseeable future, in 2017 four brand new airbus A319 will join the fleet. there are plans to introduce CS100 around same time frame and talks have been held with the Canadians on this issue, but as things are right now no new aircraft will join the fleet before 2017, only wet and short term leases to cover summer seasons that is all.




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    6. Happy for Adria Airways!

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    7. "OU might wet lease few to cover summer 2015, that is all, "

      Cause of such huge demand?! LOL. Give me a break. Wake up and smell the roses (or ZAG airport numbers).

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    8. Anonymous 8:11 PM, tourists, tourism, ring a bell?

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    9. Where are those tourists now, if i may ask? All we saw were two bankrupt airlines in Croatia before they even took-off, ring a bell?

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    10. But still Croatia have more tourist for 15% and air passengers for 10%. Problem is that most of those tourist fly with other airlines, not Croatia alines. Also as 70% of Zagreb air passengers flies from VIE, BUD, BEG, BRS, VCE, TRS, GRZ, ZAD, SPU... So if someone is smart enough he can easy bring those passengers to Croatia airlines.

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    11. Oh wow, 70% - i'm sure now that Zagreb has to potential to reach 8-10 million pax lol. You're forgetting that all the airports are bleeding traffic to each other in this part of the world, not a phenomenon unique to Croatia, yet Zagreb struggles to reach even 2.5 million will all the tourists and 'things are looking up'.

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    12. Of course, you are right. But that is why I say that Zagreb have potentials. Unlike Belgrad (who have just BUD to steals passengers), most of Zagreb passengers fly from one of 15 airporrts that are in range od 3 hours. And that will be like that till CTN open new routes.For sure I would rather fly from ZAG than from VIE, BUD, VCE...

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    13. I don't get it, why do you think that Zagreb bleeds more traffic to those airports than BUD (to VIE, BEG, Katowice and others, maybe even Zagreb) or BEG (to BUD, OTP, SOF, Timisoara...)?

      Well, for the simple fact that the airport is underdeveloped per se and that it is able to sustain a very small variety of lines cause those can rely either on:

      a) strong O&D (year-long)
      b) a hub carrier

      That is how the structure is built, based on those two pre-conditions. Seasonal tourist traffic can't change that and result in nothing more than a few colourful charters. Zagreb has none of those and that is why, bleeding traffic to other airports is not the cause but the consequence that results in 2.5 million pax per year.

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  3. Considering how much trouble Airbus gave JAT when they wanted to cancel or change their order, I really doubt that Airbus will simply forget about this order from Croatia Airlines.

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    1. No, OU is getting these 4 A319s in 2017, I think this article is more concerned with next 12 to 18 months, and OU might lease few aircraft, not sure which one, mainly to cover summer season but no new aircraft will join the fleet before 2017.

      CA100 and A319 will most likely be joining the fleet, OU longer term plans call for a fleet of up to 25 aircraft, with mixture of two manufacturers, Bombardier and Airbus.




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    2. How do you even know if OU will be with us beyond 12-18 mths ??

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    3. OT: FlyDubai starts Zagreb-Dubai service December 16th 2014!

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  4. ovaj Kučko je stvarno dileja. imaju Bombardier-e u floti i on hoće da uzme Embraer-e? svarno mu fali daska u glavi. i važi da će moći da otkažu Airbus narudžbinu

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    1. Croatia Airlines Fleet Standardization Fail

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    2. How can 3 models be fail for legacy carrier? By same standards Air Serbia „fleet standardization“ is megafail concerning A319/320, ATR 72-200/500 and Boeing 733-300.

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    3. yes, but ATR and Airbus are practically the same company, so they have same standards. and Tehnika is certified to maintain all three models. at OU, they will have 3 completely different manufacturers, with 3 completely different standards, with who to maintain them?

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    4. ATR and Airbus are "practically the same company!"??????

      Congretulations! Here we stop any discussion. That is one of most stupid sentance I ever read!!!!

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    5. I think what anon 1:46 is refering to is that ATR is half owned by Airbus Group, the other owner being Alenia. I don't know what this means in terms similarities with other Airbus planes?

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    6. Embraer if they join the fleet will be only on a summer 2015 wet lease, to cover summer season, not to join the fleet, this is until the new aircraft on order join the fleet, OU already half paid for 4 new Airbus A319 aircraft and these will join the fleet in 2017.

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    7. Now this is what i call a standardized fleet:

      http://en.wikipedia.org/wiki/Ukraine_International_Airlines#Fleet

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    8. @3:06 Jedan deo Aerospatialea pripada Aleniji a drugi Airbusu:-) INN

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  5. Don't they have strategic partner, Lufthansa?

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  6. No ambition at all. They decided to stay as they are, a lufthansa feeder. Maybe next govt will change him.

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  7. Dobar je Embrarer kad nemas vise od 100 Putnika po letu, neka im da DLH na leasing sto i hoce da mogu da zarade jos malo od CTN.
    INN MAMLAZ

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    1. Ne treba ovo INN samo mamlaz...

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  8. Ako ste u Penziji i tugujete za JATOM nemorate vredjati ljude.Svako ima pravo na svoje misljinje:-) INN

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    1. Varaš se. Nisam onaj na koga ti misliš ;) Nešto ne tugujem za Jatom, jer se ja uvek krećem ka budućnosti tako da se veoma više radujem Air Serbia - i nego što tugujem za Jatom. Od penzije me deli još jedno 30 godina. :)

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  9. "If Croatia Airlines was to buy more aircraft today it would choose an Embraer model..."

    Why would he say something like this? Common sense says that when buying something you shouldn't disclose your preference ahead of time. The likelihood of Embraer giving him better price after this are slim to none.

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  10. How come nobody was there yesterday to tell what a horrible company TAP is for being almost 15 hours late to Belgrade?

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    1. Yes, but you will find that very rarely. Air Serbia have problem with timing every day.

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    2. Checked today's schedule? Oups!

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    3. Woow, ad last you madde it. Impresive... opssss... not!

      ZRH 20 min
      AUH 60 min
      CDG 25 min
      JSI 25 min
      SPU 35 min
      ATH 45 min
      WAW late new time
      STR late new time
      TXL late new time
      CDG late new time
      CPH late new time
      PMI late new time

      ...just 14 delays... well it is a good day for JU!

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    4. Well let me correct you since you made such an effort to collect every single 'delay'. Anything less than half an hour can't even be considered a delay neither there is nothing telling you it's JU's fault, like the Paris flights, they're often turned around late by the French.

      Then:

      Warsaw isn't late
      Stuttgart isn't late
      Berlin 10 min. "late"
      Paris 25 min.
      Copenhagen 15 min. "late"
      Mallorca 10 min. "late"

      ...big deal.

      In the meanwhile, many flights arrived ahead of time today.

      I would like you to provide me an example of an airport that handles the same or higher traffic than Belgrade and compare the "delays" (obviously not Zagreb, you're at about the half the traffic Belgrade handles). That should end all the polemic i guess.

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    5. http://www.ana.pt/en-US/Aeroportos/lisboa/Lisboa/Arrivals/FlightInformation/Pages/FlightInformation.aspx

      Amsterdam - 1h30 late
      Geneva - 1h15 late
      Milan - 2 hours late
      London - 35 min. late
      Horta - 30 min. late

      WOW! How horrible airline is TAP! They have similar or more delays than Air Serbia, oh my God! I thought Air Serbia was the only airline in the world having delays! (Oh God, how stupid i am.)

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    6. To all those who are obsessing about BEG airport webiste and Air Serbia delays, i would like to ask you to get more creative and widen your horizons by consulting pages of other airports and airlines and then compare.

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    7. First of all it is not true that 30 minutes are not consider delays. 15 minutes is time which is tolerated, not 30.

      And second, how can you even compare TAP with Air Serbia. They have 59 planes, 14 of those are longhaul, + 16 planes in therir regional divisions =75 planes, so they are 4 times bigger than Air Serbia.

      So you dare to say that Zagreb which is 50% smaller is not to compare but Air Serbia which is 300% smaller can be compare. My god, you are bizantines!

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    8. So at TAP they have right to be several hours late but at Air Serbia they cannot? Man, you're missing something.

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  11. Exyuaviation, why are you ignoring company from Slovenija - Solinair, we never read about them, I just saw they have Boeing 737-400 and before they were flying with A300?

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    1. So what, this is ex yu aviation not civil aviation!

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    2. It is dedicated to civil aviation.

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    3. Don't worry Anonymous if that airline was Serbian one, we will have daily news about it

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    4. Yes, because you see daily news about Serbian based cargo airlines, because todays, yesterdays and tomorrows news is about Serbian based airlines.... Solinair has 3 planes, one of which is wetleased to another company. I don't know what you want me to report about exactly.

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    5. ExYU, if I were you I would not even bother responding to trolls who are so desperate to feed on another chauvinist fight between Serbia and Croatia. Let them rot and find another source of food for their poor wretched souls.

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    6. Fact in Ex Yu aviation industry is Croatian share of 60%, airlines and airports passengers.
      So, please thin(g) and discuss accordingly.

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  12. If you get a good price for those Embraers why not to buy 'em?
    OU has a good position for this, let me tell you why!
    1. Those Embreaers would probably be from, former, Augsburg Airlines (Lufthansa's child) and OU would get them for, I presume, really good deal.
    2. OU has it's own Technical Services and maintenance cost for those Embraers would be minimal, 'cause you OU would, again I presume, get parts at discounted price over Lufthansa Technik
    3. Embreaers are jets with 100 seats. If you ask me, perfect aircraft for OU. It's hard to say this, but even better than Airbus in current OU flight schedule!

    Pozdrav svim ljudima dobre volje.

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    1. OU will get good price from LH? Discounted price from Lufthansa Technik?

      You are joking. Or LH just change their strategy for OU and other pawns?

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    2. And you are insider who knows real prices.
      You must be joking.

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  13. OT: Air France/KLM to buy Wizz Air?

    http://business-review.eu/featured/rumor-air-france-klm-looking-to-buy-wizz-air-67177

    Just like I said, Wizz has bigger problems than market share at BEG. With 2nd failed IPO, investors want their money one way or another...

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  14. FlyDubai will start Zagreb service 16th of December, 2014.

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  15. Heh, vi se tako opušteno "gađate" sa tipovima aviona, a jedini ste u svetu koji su ATR proglasili nerentabilnim i umesto njega kupili Q400! Ne mogu da verujem!

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