Wednesday, July 5, 2017

Croatia Airlines registers strong growth


Croatia Airlines has seen its passenger numbers grow 10% during the first half of the year, with the carrier yesterday handling its millionth traveller for 2017. The annual milestone comes eleven days ahead of last year and 23 days in advance of 2015. The millionth passenger was a German national flying between Frankfurt and Split. In a statement, Croatia Airlines said, "This is the earliest we have ever handled our millionth passenger. During the first six months, we carried an additional 60.000 travellers compared to last year. The growth was generated as a result of the four new seasonal routes launched from Zagreb this year, including Stockholm, Oslo, Helsinki and Bucharest, while we continued to maintain services to Lisbon, Milan, Prague and St Petersburg, which were introduced in 2016".

During the first half of the year, Croatia Airlines registered passenger growth both on its international and domestic networks, with figures increasing 11.6% and 5% respectively. The carrier anticipates handling over two million travellers this year, making it its busiest on record. Overall growth is estimated at 7% for this year. Furthermore, the airline expects to generate some 215 million euros in revenue and to close 2017 with a profit for a fifth year in a row. "With a total of eight new destinations in the last 365 days, Croatia Airlines has offered the market an additional 100.000 seats, which is why in 2017 we expect further growth in passenger traffic and a record 2.000.000 passengers", the company said.


Croatia Airlines' CEO, Krešimir Kučko, previously noted, "Our four new routes this year have been introduced based on internal analysis and market research, which showed significant potential in the Scandinavian and Romanian markets. So far, there is great interest for flights to Oslo and this route has proven to be a big hit", Mr Kučko said. He added that bookings for its four seasonal routes launched last year have exceeded the total number of passengers transported on these flights in 2016, which the CEO says "confirms the fact that we have made the right business decision". He added, "After several years of recession, there is a slight recovery in the Croatian economy and the market requires new leisure destinations. This is why we expect that many travellers, both from Croatia and our new markets, will use our products more. Croatia has been a tourist hit at a global level for several years, not only during the summer season but also in winter. In accordance with these trends and our capacities, in the future, we plan to further expand our European network of destinations and strengthen our position".

148 comments:

  1. Will they be adding any new destinations this winter?

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    Replies
    1. Helsinki and Oslo are doing great so far!

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    2. No but Lisbon and Barcelona are becoming year round routes.

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    3. Not quite. Oslo is rocking, Bucharest is doing ok but Helsinki is doing poorly in terms of yields, loads are not bad.

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    4. Hope they will keep Bucharest.

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    5. They said they would keep Bucharest for 2018/19 winter season but not this winter.

      http://www.exyuaviation.com/2017/05/croatia-airlines-eyes-year-round.html

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    6. Interesting that Oslo is the most successful out of the new routes being launched. Would have thought it would be Stockholm which might also attract actual P2P passengers rather than just tourists going to Dubrovnik or Split.

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    7. Lots of Croats moved to Norway in the last couple of years. Their ties to Croatia are quite strong unlike Croats in Sweden where most moved several decades ago.

      Around 180.000 Croats moved to Germany in the last two, three years. I am sure we will see more flights to there, DUS on EW being a good example of what's to come.

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    8. Didn't know that. Are they mostly based in Oslo or in other areas of Norway?

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    9. I don't know that but my guess is that they are spread out since Norwegian cities are all developed and successful. Who knows, as more continue to leave we might see a seasonal flight to Zagreb from a secondary Norwegian city.

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    10. Interesting. Thanks.

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    11. Yep, since Croatia joined the EU, some 300-320 000 Croats have left the country, all highly qualified. However,some 50 000 EU nationals have moved in Croatia, so the overall demographic disaster isn't as it could have been.

      In coming years we'll see large influx of EU nationals moving in to Croatia, so by 2025 demographics should improve a bit, but yeah the need for more connection with Scandinavia in particular will be important.

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  2. Seems like Kucko knows what he is doing despite Purger and other criticizing him. So far Kucko is the only ex-YU airline CEO with a vision and the know-how to run a profitable business.

    Congratulations to all OU staff on making these things happen.

    I hope OSL will be eventually increased given the good results.

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    Replies
    1. He has a vision alright.

      "Some men just want to watch the world burn."

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    2. I don't get the point of your comment besides being a troll. Didn't he increase the passenger numbers and the airline's revenue? Didn't he take OU through a difficult period? Didn't he launch new routes and extend old seasonal ones into year-round ones?!

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    3. Didnt he sell eso Prijevoz, didnt he sell LHR slot, didnt he sell airbusess, so what the hell are you talking about???

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    4. Alen Šćuric PurgerJuly 5, 2017 at 9:22 AM

      In 2016. Croatia was in worst condition than in 2012. (before restructuration), by all indicators.

      Of course one can sell London slots, planes, motors and Pleso prijevoz he owns (and was paid by Government in 2012), and open new routes, to show that company is profitable and successful.

      But you should read my article first and than speak of how successful Croatia was in last 5 years:

      https://tangosix.rs/2017/23/05/croatia-airlines-dobiva-novog-ceo/

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    5. What choice did he have? His predecessors left a mess that should have been fixed before Croatia entered the EU. He needed money and he had to find it somewhere.

      What good would Pleso Prevoz or the Airbuses do to him if the airline went bankrtupt?! LOL

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    6. The fact remains is that Kucko saved OU from becoming another MA.

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    7. Too many emotions on here... as a Croatia I am happy that OU is still in business and there are many things that need to be completed. Maybe new planes because we already have new destinations.
      Kucko is not greatest but he is realist and that is what we need. I agree with anon 9.24, he needed money and he found them.

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    8. i am always intrigued by this plešo prijevoz mentions.
      first of all it is non-core business for any airline and i don't know many companies owning it.
      second of all, how much profit was that thing creating to be mentioned every time? hundreds of thousands € each year?

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    9. I am Anon 09.04 and 09.09

      I agree with Petar, was P.P. making enough money for the airline? Enough to keep them in business? Doubt it. The money from the sale was used to strenthen the airlines core business, flying passengers.

      Too many armchair experts on here. It's easy for Purger to write to a Serbian blog without any responsibility. Kucko has to go to work every morning and fight hard to keep the country's national airline in business.

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    10. @9:26AM

      OU was never anything close to MA to start with.

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    11. While I'm not a fan of the current CEO, I think it is better to have him then the former one Misetic who did everything purely to align OU with Lufthansa. At least with Kucko we see some new routes and plans that are not entirely dictated by Lufthansa.

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    12. +1
      LH would never allow OSL or OTP. I mean look at how much they care about OU that they launched DUS flights when OU needs them more than they do!!

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    13. @ Purger what is the status of the tender for CEO. When could we know the results?

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    14. He doesn't know anything about that.

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    15. He wrote an entire article about it, so I'm sure he does.

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    16. He only writes about speculation, nothing even concrete or groundbreaking.

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    17. Didn't the CEO also make many statements about fleet which are yet to see the light of day, not to mention the grand vision of bases in ex-yu countries this year ??

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    18. Alen Šćuric PurgerJuly 5, 2017 at 3:58 PM

      Speculation? Oh, yes.. Especially concerning CEO. Luckily you find that out. Woow, how will I now proceed my charade!

      Now to be serious. Nothing new. No information at all. It is abnormal. Procedure can not last that long.

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    19. Anon at 9.04am - what you have said is incorrect.

      JU were profitable in 2014 and 2015. 2016 we don't yet know because the results have not yet been made available. So OU CEO is not the only ex-yu CEO to deliver profit.

      What is true of both OU AND JU, is that neither are operationally profitable -
      both relied on other things to deliver an accounting profit.

      So if you are going to post a comment, pls try to be make it a factual one, rather than the subjective one it is.

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    20. Alen Šćuric PurgerJuly 5, 2017 at 4:34 PM

      Išo sam malo zvat. Dobio sam neke informacije. Navodno su samo dva kandidata u igri (znam imena oba), jedan jak je ispao, lobisti rade na veliko. Plan je da se sve zna do raspuštanja Sabora, tj. u idućih dva tjedna.

      Zamoljen sam da ništa drugo ne iznosim jel je situacija vrlo delikatna i svaka informacija bi mogla naštetiti postupku.

      I sam bog zna što će se desiti, obzirom da je ovo postala politička trakavica zbog bitno većih političkih uloga, krize u vlasti, novih političkih raspodjela, važnijih nacionalnih pitanja u ovom momentu (Piranski zaljev, stanje sa Njemačkom) i samim time ništa nije sigurno i sve što je danas odlučeno sutra se može promijeniti. U politici je to uvijek tako, ali sad je još bitno gore obzirom na političko stanje.

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    21. Hvala Alene.

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  3. and any news of the strike in july?

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    1. hasn't been scheduled yet.

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    2. It is not that easy to organize a strike. It takes time to plan and there are also laws that have to be respected.

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  4. And what will happen when that strike occurs? Will they be able to keep that projection of 10% growth?

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    Replies
    1. Yes, of course.

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    2. Their projection is 7% for the entire year. It says in the article.

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  5. Great news! Sorry for a little OT but how is Croatia Airlines doing on the Balkan routes? I see that they send their A320 & A319 (most common) almost everyday to Skopje, same for airSerbia instead of ATR, but how about the other routes in the region?

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    Replies
    1. SKP is mostly for cargo, in summer loads improve but flights are not that full. Remember, OU and JP recorded passenger decline in SKP last year.

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  6. Is it just me or is that a commercial on the overhead bin in the photo?

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    Replies
    1. Yes, they have commercials on some overhead bins. Its been that way for years.

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    2. Thank you, I didn't know that. It's a bit unorthodox for a full fare airline but I guess if it brings in some extra revenue than I understand.

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    3. I have a feeling if JU had done something similar hell would have frozen over around here.

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    4. Trust me, JU touched rock bottom with their 'living legends.' These commercials would not have shocked anyone.

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    5. @ 9,17 don't give them any ideas please.

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  7. So ZAG growth was mostly driven by OU's success? I guess foreign airlines recorded a decline during the months when growth wasn't as great?

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    1. What OU success? New routes just start in end of June. Croatia result till May was not that good. And we just have to see about Zagreb number for June.

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    2. They recorded a 10% increase in the first six months, that success.

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    3. They also sold LHR slots in order to continue funding their business - that's not success

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    4. We were speaking about ZAG's passenger numbers, not OU's financial performance.

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    5. I think OU's growth this year is certainly having a strong impact on ZAG numbers.

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    6. It looks like the arrival of foreign carriers did not jeopardize the market but helped Croatia Airlines, especially on domestic market. Good job!

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    7. OU launched unserved markets, they didn't go head to head with anyone on these.

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    8. ^^ Well what is interesting that just before OU announced some of its routes other airlines announced the same ones. CSA announced Prague and Norwegian announced Stockholm. The difference is that these foreign airline fly year round to Zagreb while Croatia Airlines only seasonally which is a shame.

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  8. I have noticed that for a few years now their millionth passenger is always in Split.

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  9. Bravo Hrvatska!

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    Replies
    1. where is guy keeping the scoreboard of bravos? who is leading?

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    2. Aman dosta vise!... dosadio si i Bogu i ljudima vise sa tim sloganom!

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    3. Sto? Meni je simpaticno.

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    4. He's become somewhat of a local mascot.

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    5. The village idiot more like it.

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  10. It will be a good year for Croatia Airlines.

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  11. Will they be introducing any more new destinations next year?

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    Replies
    1. I think that might be it. 8 new destinations for 2 years is quite good. They would need to expand their fleet again if they are going to introduce more new routes and I think the objective for next year is to get two aircraft which they will keep (not wet lease like this year and last year).

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    2. Which routes are left to be open?

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    3. A lot actually.

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    4. Places like Bucharest, Moscow, Dublin, Mostar, return to Podgorica... There are many.

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    5. Madrid also.

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    6. And Tirana. Air Serbia and Adria are doing great business there and feeding their networks. Croatia Airlines hasn't even considered it.

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    7. Alen Šćuric PurgerJuly 5, 2017 at 4:11 PM

      Dublin
      Athens non stop instead via DBV
      Roma non stop instead via DBV and SPU
      Sofia
      Moscow Domedvedovo
      Gothenburg
      Geneva

      Mostar
      Tirana
      Podgorica
      Tuzla
      Lošinj (Trade air to rent STOP plane)

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    8. Isn't Lošinj lengthening it's runway? So already next summer OU could try with own metal 8-400 or the Jetstream leased in for smaller domestic services.

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    9. Of course would be perfect solution for OU, maybe even L410 or Twin Otter or Metro ...

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  12. Could OU overtake Air Serbia this year passenger wise?

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    Replies
    1. Not really, there will be some 500.000 million difference.

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    2. Definitely possible. JU is decreasing its network while OU increases. Also factor the exponential demand for travel to Croatia its a winning outcome
      Bravo Hrvatska!

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    3. JU has increased capacity and is performing quite well this summer.

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    4. OU's additions are mostly seasonal while JU is no longer cutting its network. On top of that the airline will see some 6% growth this year.
      OU is still a long way from overtaking JU. it's competition is JP

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    5. How could that be? JU fleet is almost double the size of OU.

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    6. JU's Airbus fleet had a low density configuration until the cabin change. Now they should be able to increase the number of passengers without increasing the number of aircraft.

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    7. The best thing about the cabin change is that now they can easily send the A319 to BEY without creating a mess in the morning at BEG.

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    8. @AnonymousJuly 5, 2017 at 10:14 AM

      OU has only a fleet of 12 aircraft, Air Serbia 18. And with Aviolet 21,

      Croatian Load Factor is good, over 71%.
      So at least this is a good news. However Load Factor should be around 80%.

      If OU manages to get 4-6 CS100 and 4 A320 Neo, I expect OU will surpass Air Serbia in pax number. As is, with current fleet OU at most can carry around 2.3 million pax, well short of AS's 2.6 million.

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    9. OU will never again be the region's number one airline, that's for sure.
      They won't be getting any C series because they can't afford them. At best they will keep on leasing planes for summer seasonal flying.

      Unless OU finds a business model that works, it won't be with us for much longer.

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    10. Getting CS would be the end for them like foremost the airlines except SWR.

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  13. Happy to hear the routes from last year are performing well.

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  14. I sta ce prodati ove godine?

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    Replies
    1. Dostojanstvo.

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    2. They sold slots this year at LHR in January. Whether they will sell the remaining slots remains to be seen.

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    3. At least they are focusing on development by opening new routes.

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    4. Sa gubicima?

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    5. Bravo, Q400, odličan odgovor!

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    6. @Q400 +1000 Stvarno su dosadni ovi više sa tom prodajom slotova.

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    7. Pitanje je da li ce prodati dovoljno karata po dovoljno visokim cenama.

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  15. Great news! They should now concentrate on making those 8 new destinations year-round in the middle term to increase fleet utilisation. Zagreb will work well in the winter as a destination from those markets.

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  16. Good luck OU. Wish them all the best.

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  17. Considering they launched new destinations, this millionth passenger should have come a far lot sooner. It means that the first 5 months underperformed.

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    Replies
    1. OU should be the busiest airline by all means considering strong tourism but there is so much unused potential, non innovative thinking and corruption it is great they have this many.

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    2. Ajde ne lupetaj majke ti, nemaju ozbiljne avione za letnji turizam i sadasnji su im preveliki zimi. Nema to veze sa inovativnim razmisljanjem.

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    3. А што ти не будеш мало иновативнији када бираш речник?

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  18. Would be good if we saw some winter routes from the coast by OU. Eurowings will be flying year round to Split, TK is now flying year round to Dubrovnik. I'm sure there is enough demand.

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    Replies
    1. They were thinking about starting Split-Milano this year but did not in the end. Maybe in 2018.

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    2. No there's not, and it doesn't fit the airline's business model. Prepare to fly to Zagreb for connections.

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    3. They should operate:
      ZAG-MXP-SPU-MXP-ZAG
      and
      ZAG-FCO-SPU-FCO-ZAG

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  19. What about setting the base in SKP, PRN, SJJ?

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    Replies
    1. I think we have all realized by now that the airline lied about that.

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    2. They didn't "lie". It was something they considered but it seems like they gave up on the idea. Thankfully.

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    3. And it's a good thing for ZAG they didn't follow through with that plan otherwise they would have lost a few transfer passengers.

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    4. All CEOs of EX-Yu airlines make these huge announcements and promises but in the end, nothing much happens.

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    5. Balkan mentality.

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    6. Focusing on Scandinavia was a way smarter move than opening bases in the Balkans. Thank goodness they chose wisely for once!

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  20. Next up even cosier ties with Adria.

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    Replies
    1. What do you mean?

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    2. Piran Airlines.

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  21. ZAG numbers are out:

    2016: 267.259
    2017: 310.927 (+16%)

    So far this year the airport welcomed 1.335.942.

    Great results but I hoped for at least 22% with all the new flights.

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    Replies
    1. Just to add:

      So far this year, ZAG welcomed an additional 110.053 passengers while 43.668 in June.

      That means an extra 1.455 per day or 728 extra arriving or departing passengers per day.

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    2. Great results! Congrats Zagreb! Besides EK , were there any other new airlines flying into ZAG?

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    3. Great news, 16% more pax is an excellent results, considering there are almost no LCC carriers in ZAG. Btw, Qatar is sending Dreamliner to ZAG, soon!

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    4. The Dreamliner gossip has been going on for at least two years now. I'll believe it when I see it.

      So basically this growth came mostly from OU's new routes and EK?

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    5. I was actually thinking 10% so this is great to see.

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    6. Why did you think it would be so little? EK is in town, OU has been growing, Monarch has been in town this June and so on.

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    7. Plus LO with a mix of E95/734 and QR with its A321

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    8. Alen Šćuric PurgerJuly 5, 2017 at 4:48 PM

      Dakle po broju novih putnika u 6. mjesecu:

      1. SPU 82.040
      2. DBV 49.920
      3. BEG 46.776
      4. ZAG 43.668

      Iako je brojka velika, ipak je to poprilično razočaravajuće. ZAG ima 8 novih linija, 6. ih se već moralo ustaliti jer su počele u 5. mjesecu, Emirates i Norwegian su počeli svoje letove, velik broj kompanija je povećao kapacitete.

      Čak je i Beograd bolji u broju novih putnika iako je imao manje novih linija i frekvencija, a i Air Serbia je smanjila broj letova za 46 tjedno ili 11,6%. To samo pokazuje koliko LCC (u ovom slučaju bazirani avion Wizz Aira i Transavia može donijeti novih putnika).

      Očekivao sam puno više od Zagreba. Uz ovaj trend Zagreb bi mogao brzo postati broj 3, a ne tako daleko i broj 4 u regiji.

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    9. LO route to Warsaw is doing great!

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    10. Qatar widebody is not a gossip at all :)

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    11. @Alen - ako si pažljivo brojao raspoloživa nova sjedala za 06 mjesec u ZAG, možeš jasno vidjeti kako bi ZAG imao +12% do +13% da su isti LF ostali od godinu dana ranije. +16% je izvrstan rezultat, koji naravno ne izgleda (pre)impresivno kad imaš jedan SPU koji ostvari +25%, naravno... :) LCC su neupitno potrebni Zagrebu i dobro je znati kako tu postoje znatne rezerve i nije sve "ispucano" odmah...

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    12. Is it loaded in the system?

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    13. Congrats Zagreb! I was hoping for 315,000, but this is close enough. So this May ZAG surpassed last year's June and this June, it surpassed last year's July. That's great!
      In July and August ZAG should handle around 350,000 pax.

      Delete
    14. @Alen Šćuric PurgerJuly 5, 2017 at 4:48 PM

      Man, sometimes you just can't stop talking nonsense, how could Zagreb handle more in such a short space of time. New routes were just started, you being in Aviation industry should know how long it takes for a route get decent pax.

      16% is very good result and way above expectations. Most projections were 290-300k.

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    15. @PetarJuly 5, 2017 at 5:15 PM

      Indeed, projections where 297500 based on number of flight operations and average load factor for June.

      The fact load factor is high, 105, or increase by 42%, is fantastic. Vienna, Stockholm and Zurich get these sorts of loads.

      If Qatar starts sending B787, in July and August, lf can only improve even more.

      Zagreb airport is doing quite well. I projected 305-308 000 pax for June, I was really close.

      July will be around 345 to 350 if OU strike can be averted. August will be also about the same, 345-350. Anything over 350 would be outstanding result.

      For people who think Zagreb needs to grow faster, I think i'd rather have 30-40 legacy carriers paying their due, than 4-5 LCCs who blackmail airport for every destination.

      As is, Zagreb will comfortably hit 3.1 million, hitting 3.2 million would be something.

      Projections for 2018, 3.5 million, unless Zagreb airport can secure more new carriers. Based on current projected growth in Load Factor and number of operated flights, 3.5 million is 95% certain.

      If Voltea, Transavia, EasyJet and few more carriers come, numbers will go up really fast. 3.7 million is likely.

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    16. @PetarJuly 5, 2017 at 5:12 PM

      If Qatar stars sending B787 in the morning and A320 in the afternoon that'd be great. I know they're doing double daily now, but that would be a significant increase on the route,

      from A321+A320 = 326 seats (182+144)
      B787 + A320 = 400 seats. (256+144)

      I know load factor so far for Qatar is excellent, but we didn't expect them to start with B787 before 2020.

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    17. Does anyone have the info of new seats offered vs the increase in passenger numbers? I think I can understand why some people are frustrated on here. In June we had Emirates with daily flights, Monarch, OU's new routes and an additional aircraft.

      Seems like someone underperformed OR they all had mediocre results.

      Delete
    18. Just read this
      "- ako si pažljivo brojao raspoloživa nova sjedala za 06 mjesec u ZAG, možeš jasno vidjeti kako bi ZAG imao +12% do +13% da su isti LF ostali od godinu dana ranije. +16% je izvrstan rezultat, koji naravno ne izgleda (pre)impresivno kad imaš jedan SPU koji ostvari +25%, naravno... :) LCC su neupitno potrebni Zagrebu i dobro je znati kako tu postoje znatne rezerve i nije sve "ispucano" odmah..."

      Delete
  22. After PUY is RJK the next Eurowings winter destination. CGN-RJK ----5-7

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    Replies
    1. Excellent, congrats, Rijeka!

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    2. Finally something during the winter. Congrats Rijeka and Euro wings!!!! :)

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