Thursday, December 4, 2014

Croatia Airlines plans for 2015

Croatia Airlines to see boost in profit and passenger numbers in 2015

The Croatian State Management Office (DUUDI) has published its outlook for Croatia Airlines for 2015, during which it believes the carrier will see a significant increase in its net profit and passenger numbers. According to DUUDI, the Croatian carrier will record a net profit of 12.4 million euros next year, up from a projected 730.000 euros in 2014. This will be achieved through an increase in revenue as well as sales and leaseback agreements of its aircraft and engines. Furthermore, the airline is expected to handle 1.987.231 passengers in 2015, of which 1.908.644 should come from scheduled services, and the other 78.587 travellers on charter flights. In addition, the State Management Office forecasts an average cabin load factor of 72.4% next year. The carrier will receive subsidies amounting to 10.6 million euros from the Croatian government in 2015 in order to maintain its domestic network.

In its report, DUUDI notes, “During 2015 Croatia Airlines will continue with its restructuring program and will be partially or fully privatised - depending on market conditions. During 2015 a further rationalisation of the airline’s business is planned through a cut in employee costs and the closure of international offices”. The State Management Office also adds, “Bearing in mind the strategic importance of Croatia Airlines to the Republic of Croatia, the Croatian government is seeking a strategic partner which will secure its future development and position the carrier as a regional leader”. The Croatian carrier will launch seasonal summer flights from Dubrovnik to Nice and Rijeka to Munich next year.

In October, the Croatian government formally relaunched the airline’s privatisation process and appointed a commission, headed by the Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić, to handle the sales procedure. It is expected for a tender for the submission of bids to take place in early 2015. The government foresees for a company from the European Union to acquire a majority stake in the airline but those from outside the bloc will be limited to a 49% share. It expects from the new owners to invest funds into Croatia Airlines, modernise its fleet, expand its route network and market share, further develop its profitable maintenance division and support the development of Zagreb Airport.

46 comments:

  1. OT: Air Baltic new summer route Dubrovnik-Riga starting May 26th until September 22nd 2015!

    http://dubrovackidnevnik.hr/vijesti/grad/sljedece-godine-novi-letovi-dubrovnik-ce-biti-povezan-s-latvijom-povratne-karte-od-190-eura

    ReplyDelete
  2. So, any news on Croatia Airlines privatisation?

    ReplyDelete
    Replies
    1. It says in the article. Last paragraph

      Delete
  3. Any updates on Air Croatia? Aren't they supposed to start flying soon?

    ReplyDelete
  4. Since we are talking about Croatia and we are a week away from Air Serbia's flights, does anyone know if they will launch the route with an A319 or will be it with an Atr-72. From what I remember Banja Luka and Tirana were launched with the A319 but Bucharest and Budapest were with the Atr.

    ReplyDelete
    Replies
    1. A319 on the morning inaugural flight

      Delete
    2. Da se vidi raskos :)

      Delete
    3. Oh nice, I guess they can't have the ambassadors on the Atr. lol

      I am more than confidant that JU will get all the permits in Croatia. This is just a minor bump in the road. After all, if JU managed to get the permit for Lebanon and to return to IST then I do not see why they would fail here.

      Delete
    4. Of course it will be A319. Would be nice to see some passenger impressions because flights between BEG and ZAG have great (at least symbolic) importance for the region's aviation industry.

      Delete
    5. I'm pretty sure EX-YU will be on the flight :) They were on Tirana flight too

      Delete
    6. ...Banja Luka and Budapest too. :)

      Ex-YU did you also go to Bucharest when they launched it?

      Delete
    7. I think that would have been impossible. Didn't they launch Budapest and Bucharest on the same day? :D

      Delete
    8. Hhah wait... I don't think so. Bucharest was launched in December with Banja Luka, Ljubljana and Prague. Didn't Budapest start in March?

      Delete
    9. I made a mistake Sofia and Budapest were launched on the same day ;)

      Delete
  5. “Bearing in mind the strategic importance of Croatia Airlines to the Republic of Croatia, the Croatian government is seeking a strategic partner which will secure its future development and position the carrier as a regional leader”
    How can OU be a regional lider with ASL next to it and Aegean and TK in the Balkans?

    ReplyDelete
    Replies
    1. Every single country in this region believes it is the regional leader be it Serbia, Croatia, Macedonia or any other. This is the region of "regional leaders". We all know that :) And of course they should aim to become regional leaders. Why would you aim anything less, which ever airline you are. Air Serbia wants to become a regional leader despite having TK and Aegean and that is normal. Whether there is any chance to become reality is not that important. It's normal to aim high.

      Delete
    2. Let's not forget Austrian Airlines to the north and Alitalia to the west. They are basically surrounded by two large players (OS, AZ) and two smaller ones (JP and JU). I know that JP is small and relatively insignificant but they are still taking away potential passengers from places like SJJ or SKP.

      Delete
    3. Well I think it is an exciting time for this region. Compare it to two to 3 years ago. Nothing was happening. Now we have real competition and airlines are using different strategies which is great. We will see which one had the right one.

      Delete
    4. Competition breeds success.

      Delete
  6. This is an interesting analysis. How do they do it? I'm not saying its wrong but just wondering the methodology?

    ReplyDelete
  7. Svaki Ciga svoga konja hvali.

    ReplyDelete
  8. OU interior looks pretty good judging by this photo. Did they upgrade the interior on all of their aircraft?

    ReplyDelete
    Replies
    1. I think that by now all the aircraft were fitted with the new recaro seats. If I am not mistaken they are the same as the new Austrian Airlines ones, just different colour.

      Delete
    2. They look good. I like the magazine placement in front and not an actual seat pocket. Do they show something other than a moving map on those screens?

      Delete
  9. I hope OU finally introduces new uniforms. The current ones are so boring.

    ReplyDelete
    Replies
    1. I agree. A little refreshment would do good. Wouldn't mind if they made some changes to their livery. It's a bit white.

      Delete
    2. They need a touch of class, these are too bland, they don't stand out at all.

      Delete
    3. If they will be privatized, probably they will change the livery and uniforms. If.

      Delete
  10. During the summer months, TAP's average loadfactor was around 60% while during the winter season it was below 50%.
    The airline has not yet decided on what to do with their Belgrade flights, they might be operated seasonally... same as Vueling's flights to Barcelona.

    ReplyDelete
    Replies
    1. What has this got to do with anything?

      Delete
    2. It has to do with an ex-YU market and this is an ex-YU blog. Deal with it.

      Delete
    3. Can you at least have the courtesy of putting OT at the start of your message when it has nothing to do with the topic or any discussion today?

      Delete
    4. Is it such a big deal for you? Are you confused now? People will still trash the topic OT or not.

      Delete
    5. Nice to see you realize you are trashing it. It's just etiquette.

      Delete
    6. I was referring to the off topic post about TAP's flights to Belgrade, not the one about OU. ;)

      Delete
    7. Portuguese news article from Nov. 26: http://www.presstur.com/site/news.asp?news=49032

      Delete
    8. Air serbia will get new planes and expand network and everyone will forget TAP. LIS and MAD are sure for expansion. And TAP is in bad financial situation so its better for BEG

      Delete
    9. Why is better for Beg?

      Delete
    10. Their times and frequencies were horrible, they cancelled so many departures during the peak season, it had to end in failure.

      Delete
  11. MOntenegro new one weekly VIE-Tivat seasonal

    ReplyDelete
    Replies
    1. from austrian forums

      Delete
    2. Seems like YM is expanding despite saying that it will lease some aircraft.

      Delete
  12. 730.000 EUR profit - 10,6 million EUR state subvention = 9,87 million EUR debt for 2014 if there was no state subvention. Math cannot be deleted.

    ReplyDelete
    Replies
    1. It can't but even yours is not 100% correct either. The reason for subsidies is because these flights are not financially viable to begin with. So, $10.6M is to covers those losses. Had they not been forced to operate them they wouldn't have the loss. So in theory they indeed are operating in black.Now, if you consider to the amounts given to Wizz at SKP, $10.6M does seem like a lot. So, there is a possibility these losses are exaggerated.

      Delete
  13. OT: In a very short time Air Serbia managed to dominate social media presence among all Ex Yu airlines. On official Facebook page Air Serbia has about 50% more likes than Croatia Airlines and significantly more than all other Ex Yu airlines combined (Adria + Montenegro + B&H). Air Serbia has more likes than any of legacy East Europe airlines (Tarom, Bulgaria, CSA, LOT).

    ReplyDelete