Thursday, May 21, 2015

Future partners for Croatia Airlines by October

IFC to find Croatia Airlines' strategic partner by the end of October

Croatia Airlines’ privatisation process is advancing with its external consultant, the International Finance Corporation (IFC), expected to seek out potential new investors by the end of October this year. The Croatian Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić, who heads the carrier’s privatisation committee, said yesterday, “Following the stabilisation of the airline’s business, the Ministry signed an agreement with the World Bank, more precisely its fund [IFC], which is assisting us in the search for a strategic partner. By the end of October, they will list potential investors”. Mr Hajdaš Dončić admitted that the government has not selected a privatisation model for the airline. “We are looking for partners that would enter Croatia Airlines in any way. By that I mean, either through recapitalisation, with the expansion of the carrier’s destination network, or through the purchase of a 49% stake”. It is the first time the government has mentioned recapitalisation as an option.

Croatia Airlines’ CEO, Krešimir Kučko, has repeatedly called on the government to recapitalise the company, rather than sell a controlling stake. Recapitalisation would entail changes to the airline’s capital. This may occur, for instance, when a creditor exchanges a loan for a stake but does not require changes to the company’s management structure. Commenting on the privatisation process recently, Mr. Kučko said, “An ideal partner would be someone that would recapitalise the company. A takeover, like the ones we saw in the region and beyond, would not benefit Croatia Airlines”. He added, “It will be difficult to find a partner from the Far East as they generally do not buy European carriers. On the other hand, companies from the Middle East could show interest. In our view, a strategic partnership should be purely financial. As a company, we no longer have losses and neither are we producing any. Both our international and local suppliers are payed for on time”.

Last October, the government formally relaunched the airline’s privatisation process, following a failed attempt in 2013. Minister Hajdaš Dončić is adamant that the carrier will have better luck this time around. “We are not backing down. Each year ten airlines declare bankruptcy and a fifty new ones are established. Our aim is to empower Croatia Airlines but this is only possible with a strategic partner”. Over the course of last year, both Turkish Airlines and Etihad Airways ruled out any interest in acquiring the Croatian carrier. On the other hand, Qatar Airways says it is again pursuing acquisitions in foreign airlines, preferring a similar model to the one proposed by Croatia Airlines’ CEO. Croatia Airlines posted a profit for a second year running in 2014, boosting its prospects of a successful privatisation.

77 comments:

  1. Simple no Buyer.

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  2. This is being drawn out a lot. Hope they manage to sell it to someone.

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  3. Are there any takers? Anyone express any interest?

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    1. The only ones that have expressed an interest to buy 5-15% are pension funds. That probably means it will be a recapitalization and not an actual sale.

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    2. Adria has simmilar offer from pension funds a few years ago and they turned it down.

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  4. Zašto CTN treba prodati? Sećam se velikog broja postova pre dve godine pred stvaranje ASL i kritike na račun partnerstva sa Etihadom na temu zašto se na medjunarodnom konkursu ne nadje profesionalni menadžment? Za razliku od nekadašnjeg Jat-a CTN je u mnogo boljoj situaciji.

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  5. Sounds like Kucko is is fighting for his job again.

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  6. The longer they wait the more difficult it will become. OU is sandwiched between Alitalia and Air Serbia and Alitalia is about to be relaunched. Then you off course have mama Lufthansa to the North.

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    1. Is there any chance of Lufthansa buying them. Seems like the most natural alliance for me.

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    2. What's the point. They already dictate the airline's strategy without having to spend a penny.

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  7. Lufthansa is mama for CTN, Swiss, SN, Austrian A.

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    1. What is your problem? Naming it what LH is doing to their subsidiaries?

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    2. Mom to austrian and swiss and step-mom to CTN ;)

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    3. Tyrolean took over Austrian, I do not think they are in better position then CTN.

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    4. Tyorolean ne postoji vise i nije on kupio OS nego OS .
      INN-NS

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  8. OT: I was on board JU 360 BEG-AMS yesterday, it was 115 pax in Y and 2 in J in A319. Almost all the passangers were tranisiting to US, there was large group of students going to Work&Travel program

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    1. Possible starting of transatlantic flights may have a disasterous effect on some routes to Western Europe, especially Skyteam hubs: AMS, CDG, FCO and MXP. LHR will also be affected much.

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    2. Ali oni pocinju a saradnja sa Skyteam-om ostaje.
      INN-NS

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  9. Kao sto se vec zna kupca nece biti , sanse su 1 % .Posto znam da cu biti optuzen kao nacionalista , recite mi koja kompanija ce uci u trku sa LH-OS I AZ-JU ?
    Ili da predlozi neki plan mozda.
    INN-NS

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  10. In the same year you have three airline trying to find a partner in the region - Croatia Airlines, Montenegro Airlines and Adria. That makes things much more difficult.

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  11. This CEO is living his life in Disneyland. Who on earth ever heard of a "strategic partnership being purely financial" ? It is either financial and therefore some form of recapitalisation, or, it is a strategic investment, which means, management know-how, systems, aircraft, network etc etc. The latter would usually mean new mgt and worse for him, a new CEO. No wonder he is pushing the financial barrow ..... Good luck with that !.

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    1. Sve ce to platiti Purger i ostali hrvatski poreski obaveznici ko sto mi placamo u Srbiji. Od svih ovih kompanija vajdu imaju samo njihovi sefovi.

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    2. I to je opet efektivnije i korisnije po domaću privredu nego samo strani prevoznici. Znam da ima ljudi koji bi želeli da u celoj Evropi bude samo jedan avio prevoznik i da to bude Deutsche Lufthansa.

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  12. OT: Etihad is sending some of used Airbus A330 planes to Alitalia or keeping and repainting them in the new Etihad livery. Do they have any A330 left for Air Serbia?

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    1. Ne bojte se sve se resava polako samo sto vi ne znate .
      INN-NS

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    2. Etihad is going to send A380s to ASL.
      With those it will fly daily to JFK, Chicago, Montreal and Toronto.
      INN-NS

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    3. Btw, what's happening with today's AirSerbia's flight from Paris to Belgrade ? At the moment the departure is late for 6 hours. Any information ? The plane in case is YU-API.

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    4. Regarding Belgrade, Etihad Airways has just shut its representative office, the employees could join Air Serbia or try to find another job.

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    5. INN-NS, Etihad sending A380 to ASL, really? What is your next prediction, that Air Serbia will start flying nonstop Belgrade, Serbia (BEG) - Belgrade, Montana (BZN)?

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    6. Nisu to moji predlozi a piloti idu uskoro na sim za ETOPS u SOF jel dosta ovo.
      INN-NS

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    7. Nije loš taj Beograd u Montani. Aerodrom ima 8 mostova kao budući aerodrom u Zagebu.

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    8. Jadan taj tvoj izvor iz ASL, mora da ga smaras svaki dan kad svako malo imas neku "ekskluzivu" za podijelit s nama tu. Sigurno postoji neka interna istraga unutar ASL, svi se pitaju otkuda nam cure informacije.

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    9. "Etihad is going to send A380s to ASL.
      With those it will fly daily to JFK, Chicago, Montreal and Toronto.
      INN-NS"

      INN-NS did you actually wrote this?

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    10. Dzabe vam istraga posto ne moze nikad da izgubi posao. A vi i onako ne radite za ASL . A mozda nije sve od hedne osobe
      @ 6:02PM
      Nisam to napisao a i A380 nije u planu.
      INN-NS

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    11. Is the A330 coming from EY or the 'EY group'? Talk is that Jet has a surplus of widebodies that even EY has taken some on lease, and wouldnt be surprised if it was coming from them, which is where JU could take on their A330's as well, when the occasion comes.

      @INN-SNS

      youve been talking for 2 months that soon the flight crew is going on training....on a daily basis. ne smaraj vise covece, jesi li mentalno ogranicen ili sta? The crew would most likely do training in Abu Dhabi just as they did for the A320 fleet.

      A stvarno koji je tebi problem? dolazis ovde svaki dan sa komentarima kao da si izmislio toplu vodu. nemas pouzdane izvore, vredjas kreditabilne ljude ovde...vise puta je ispalo da ono sto pises na dnevnoj bazi nije tacan, stvarno kako ti nije blam da se pojavljujes uopste a kamoli da komentarises.

      btw, obecao si svima ovde da neces komentarisati mesec dana ako ne budu krenuli letove za Kinu, dakle...

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    12. Rekao sam ako neko kupi CTN onda necu komentarisati.
      A za A330 idu za nekoliko meseci nije posteno da pisem mesec.
      INN-NS

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    13. Rekao si da nečeš komentirati mesec dana ako ne krenu letovi za Kinu. Budi čovek od reči i učini nam tu sreću! Pa da ovaj blog bude PRAZNIK!

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    14. Ja vrlo dobro pamtim i rekao sam ako neko kupi CTN.
      INN-NS

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    15. the big man from INNMay 22, 2015 at 1:43 AM

      INN-NS lagati nije lepo! hehe

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    16. Ja znam vrlo dobro sta sam pisao , ne bi trebali svaki dan zbog gluposti da se svadjamo takvih.
      INN-NS

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    17. Moramo da se svadjamo kada provociras i pises gluposti. I da, rekao si da neces pisati ako ne stigne avion i ako ne mrenu letovi za Kinu.

      Ananas

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  13. Sorry for OT
    Has anybody traveled with Jet Airway before on here? How are they in terms of delays and service? I finally bought a ticket from YYZ to BEG via BRU with them in August for around 670 euro which is 200 euros cheaper than the competition. On the way back my connection i only 1:10 min, is that enough considering that ASL flight could possibly be delayed.

    In case that I miss the flight on the way back, what happens? Since its two different companies will they ask me to pay myself the ticket fro BRU to YYZ??

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    1. Is it one ticket or two tickets? If it's on 1 ticket/booking code, then you should not be worried. They will reroute you, find another alternative in case you miss the connection.

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    2. Btw, one should ask him/herself this question before actually booking the flight...

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    3. YYZ
      Ne kasne Avioni za BRU.
      Prijatelj mi je leteo iz AUH sa njima za BOM i bio je prezadovoljan sa A332.
      INN-NS

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    4. BRU is small airport with a a three runways. On MUN I changed plain in less than 40 min.

      And worst that can happen is You only will stay one day or night in Brussel, take some good beer and chocolate.

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    5. Anon 6:16,
      Its one ticket
      Anon 6:17,
      haha I knew somebody was going to say that , but here is the case: Lot had a connection of 1:15 min for like 850 euros, LH gave 1 hour connection for 870 euros. The best option was KLM but the ticket price was something around 950 euros. BTW I can still cancel the ticket for free, and in the next 24 hour with small fee.
      INN-NS,
      I see
      Anon 6:27,
      I know that BRU is not lets say Frankfurt, but if ASL flight is late for like 45 min I am done :p. Do you think that they would re route me on lets say Aer Lingus?

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    6. You can't lose your job for one day delay? Just relax, any ticket office would sell you connections longer more than one hour.

      No you are not done if ASL cabine crew informs Jet that you are coming with a small delay. Then Jet captain will not close airplain door and you will get your luggage probably next day.

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    7. I am in university so its all good and that all done thing was of course over exaggerated. I just wanted to get your opinion on the company and see what you say about short connection times. Thanks for info everybody and if somebody has anything else to add please do.

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    8. @YYZ

      If its one ticket, worst case in case of a delay/missed connection, they will reroute you. If a connection couldnt be made then they wouldnt sell the ticket. As for the product and service, google is your best friend. Happy travel :)

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  14. OT: BEG-SJJ 100% LF this afternoon. I was quite amazed.

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    1. Today at 15.00 i was on austrian plane on the apron and counted the pax walking to the air serbia atr. Arrived to 51 when austrian a320 started taxiing and my view was obstructed...the austrian flight was nearly full maybe 85% lf with majority of passangers in transit (I was amazed at how few people arrived to the passport control.

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    2. SJJ is a route that fills well. Its a route that should go double daily IMO.

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    3. OS je jako dobro popunjen imaju preko 88% lf rekao mi je prijatelj koji cesto leti na toj liniji.
      ASL ima takodje preko 90% nekim danima.
      INN-NS

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    4. Dobra raja! Inace prvi put letim direktno iz beca, obicno sam isao sa asl preko lybe jer su bile puno jeftinije karte. Ali sada je OS spustio cene, povratna za 330 evra a bila je preko 600 vec 3-4 meseca. I guess feeling the heat..

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    5. Повратна 600/330 за где?

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    6. VIE-SJJ sa austrianom.
      Ps. Moj post u 7.36 se odnosio na povratni let iz Sarajeva danas.

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    7. Wow, you must be rich to fly from Sarajevo.

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    8. Complete rip off. In general bosnians in vienna are all crying when they buy tickets to visit back home.

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    9. Up untill this year it was ripoff for YYZ people as well since VIE was preatty much the only transfer point for us. On average it was 200$ premium compared to BEG or ZAG

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    10. Ccc, that's how they treat their old colony, they can't cope with the fact they can't milk it no longer.

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    11. In my opinion BH should be flying to Vienna, they've got the perfect aircraft and i'm sure they could be competitive with such ridiculously high prices. That would take them out of the red.

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    12. If I remember well JA was flying to VIE not that long ago but I'm not sure how much O&D traffic there is.

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  15. Da, da. Za ne povjerivati je koliko su bezobrazno skupe OS tarife izmedju VIE i SJJ.

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    1. What about ASL fares, any better?

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    2. If there is no direct competition with non stop flights and LFs are healthy, why would they be lower? I mean, it is common business sense.

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    3. ASL fares mainly in the eur 180-245 range, so much cheaper.

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    4. Cool, so once OS sees it loses (valuable and high paying) pax over JU on VIE SJJ then it is expected to see lower fares. Of course, combined with possible low SF on VIE SJJ. If that is not happening, no need to do any fare changes.

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    5. i think OS did just that..i guess they were feeling the heat...

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    6. Well, who in right mind lowers the fares just because pax are displeased :) I am sure OS fully uses and charges the fact that they are the only non stop carrier in heavily undersrved market - as demand probably outweighs supply. Cheaper fares are on 1 stop carriers and buses. Something for everyone :D

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  16. No ME3 expansion at AMS ! http://www.arabianbusiness.com/dutch-gov-t-blocks-gulf-carriers-expansion-at-amsterdam-s-schiphol-airport-593530.html#.VV5eudKqqkq

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    1. Well, that's no surprise.

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    2. And when some Balkan government does it than it's protectionism, bad business etc.

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    3. Maybe AF/KLM would be more competitive if they got their own house under order. A good place to start would be to learn from the MEB3 and create a better relationship between the management and the pilots. Step one is to reverse the trend of outsourcing flying to Transavia. Equal flying must be paid equally!

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    4. It would be more correct to say no further expansion at present. It is not as if they are removing their presence and QR is only starting. Besides, it is probably more related with cargo ops.

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