Croatia Airlines’ answer to financial crisis

The Global Economic Crisis has had a devastating effect on the aviation industry with multiple airlines going into bankruptcy and once powerful carriers such as Alitalia on the brink of collapse. The Global Financial Crisis is yet to have an impact on the aviation industry in the former Yugoslav republics although Jat Airways’ failed privatisation is largely blamed for the crisis. Croatia has seen a drop in tourist numbers and Croatia Airlines is preparing for 2009 which could see a further decrease. Croatia Airlines CEO, Ivan Mišetić (pictured above, to the right), said that if passenger numbers decrease in 2009 Croatia Airlines would push back its order for new aircraft (4 Airbus A319s and 2 Dash8s). Due to the price of fuel in the first half of the year, Croatia Airlines ends November with a total net loss of 21.5 million Kuna (approximately 2.990.000 Euros). Even though fuel prices have significantly declined in the last few months Croatia Airlines is still not benefiting from it. The airline says it could feel some relief from the decreased fuel prices in the first quarter of 2009. The airline has also confirmed it will not decrease its ticket prices as it has never increased them during the fuel crisis. The question of Croatia Airlines’ aircraft order could be in jeopardy next year but only time will tell. Economists predict that the world will see a stabilisation in the world economy in late 2009.