Croatia proposes merger deal

Croatia, Adria and Montenegro in merger proposal
The Minister of Maritime Affairs, Transport and Infrastructure in the Croatian government, Siniša Hajdaš-Dončić, has announced the possibility of merging Croatia Airlines, Adria Airways and Montenegro Airlines into a holding company. Speaking to the media over the weekend, Hajdaš-Dončić said that the situation within Croatia Airlines is tough but that some problems will be resolved once the new CEO and Board are named. However, the minister notes that if the new management fails solve the national carrier’s problems a merger between some of the airlines of the former Yugoslavia could be the key.

The minister suggests for Croatia Airlines, Adria Airways and Montenegro Airlines to form a multinational holding company, similar to International Airlines Group, which has been created by British Airways and Spain’s Iberia. Hajdaš-Dončić emphasises that within this holding, Croatia Airlines would be the dominant carrier and would initially exclude Jat Airways from the arrangement. Both Croatia Airlines and Adria are members of Star Alliance. The announcement comes days before all the airlines of the former Yugoslavia, with the exception of B&H Airlines, sit down for talks in Budva over the weekend.

Reacting to the announcement from Croatia, Adria Airways said, “We know nothing about it. There have been no such talks”. Croatia Airlines and the Slovenian national carrier already cooperate on fleet exchanges. Croatia Airlines is currently using an Adria Airbus jet for its weekend flights to Istanbul. The idea to merge the national airlines of the former Yugoslavia came earlier in the year from the Association of European Airlines which warned that the carriers will go bust if they don’t put their difference aside and cooperate. All of the national airlines in the EX-YU region ended 2011 with multi million euro losses. As it stands now, 2012 is not looking any better.


  1. Anonymous09:05

    So the new Balkan SAS is born! Hope that it will run economical and not political.

  2. Anonymous09:41

    What's economical and not political here?

  3. Anonymous09:45

    Mr. Minister is just another incompetent Croatian politician.
    That is only we could export all over the world.

  4. Anonymous10:14

    merge of companies and yielding the seat capacities is economical everything else - who will have leading role of the airliners thats already a political one! JP should be sold to croatians and thats it! enough of spending slovenian public money! 50 mio and they will need even more than that by the end of the year!

  5. Anonymous10:17

    This has "political" all over it. Why else would anyone want anything to do with the bottomless cash pit that is Montenegro Airlines?

  6. Anonymous11:26

    The same famous CEO of Adria last year announced several big stratejic partnerships, namely Air India, Qatar Airways and even Turkish Airlines. All of them denied. This year will gain his salary with the mergers. Good political approach without viable results.

  7. Anonymous11:33

    I fail to see what this might bring. Montenegran market is too small to matter and the fact that LJU is so close to ZAG make it even more stupid.

    Also, it is not like OU is a prime example of how to run an airline for them to lead the pack so...

  8. Anonymous12:32

    Maybe they can name it: FAIL AIRWAYS.

  9. Anonymous12:33

    I think the situation is that LH is giving instructions how, where, with whom etc.!!!

    1. Anonymous13:00

      I also think that the German masterminds from LH are sending instructions to Zagreb. OU would never do this deliberately. I am really happy that JAT Airways is not joining this madhouse.

    2. frequentflyer05:31

      ^ točno, Anonymous.

      That would assume OU have independent thought and a business plan that works!

  10. Anonymous13:12

    I think there definitely is German influence here. But as in all German interference in the region, it is not done directly through German companies: but it is done through Austrians'.
    And I do not think that anybody is giving any direct instructions to anybody. However, the conditions are made so as to make countries in the region(beit political, commercial or social moves) to behave on the way that would serve the interest of EU, more specifically Germany.
    And, let's be open and honest here; leaders in political, commercial and social arenas in the region are sooooo dumb, soooo dumb for not realizing this.
    Merge with whoever you want, agree on whoever will lead the merger, there is going to be no success in this business.

  11. Anonymous15:35

    Well why did Adria stopped to London, Paris and short time also one of the best routes to Istanbul? LH! Why did Adria stopped flights between VIE - FRA? LH! At the beginning and correct me if I am wrong Adria served also the route VIE - MUC! Come on! Slovenian goverment has to sell it and maybe to start new company with 3 airplanes or just sell the airport capacities to the foreginers! Just ask me for another 1000 EUR tax money that I have to pay for them! I dont mind that croats or serbs take over the airliner and all debts!!!!

    1. Anonymous18:54

      You stupid Slovenian taxpayers should donate your
      crap airline to the Albanians...

      Isnt Adria the de facto national airline of Kosovo?!

  12. Anonymous18:47

    ...initially excluding Jat Airways?

    Hmmm...also a new airline called ANTI-JAT?

    Croats and Slovenes again unite against
    evil Serbians?

    Well that nonsense comes out when gouvernments run airlines!

  13. Anonymous21:57


    1. Romznacicovek00:10

      You poor poor poor guy. Ovo je jedan od onih koji najverovatnije sanja da sedne u avion, tj zrakoplov jednom, jedan dan, a do tada ce ovde da smara... Time samo pokazujes kompleks svog naroda i nista vise, a postizes nula.

    2. Anonymous06:14

      Мени се пре чини да је неки клинац кој живи у Немачкој или Аустрији и онда се као пали на те јефтине националистичке фазоне. Поприлично јадно, шта рећи.

    3. Anonymous20:20

      Srbijanci i slicni sa njima trebaju se okrenuti prema istoku a mi sa hrvatima,slovencima prema zapadu,i tako mi allaha svetoga i neka ostane-nikakva zajednicka aviokompanija!!!

  14. frequentflyer05:29

    What's in it for you, Minister? A nice new BMW?

    Others above have rightly smelled a rat with this one - the fact this proposal has come up at a time when:
    1) not ONE of the airlines proposed is profitable
    2) there is no CEO at OU to steer the ship
    3) this merger does nothing for fleet harmonisation
    4) the exYU is one of the remaining battlegrounds left for the airline alliances in Europe

    Merging unprofitable companies of any size does not suddenly make them profitable. There are too many risks at stake here, but as per normal I don't see this absurd proposal getting of the ground...

    Let's wait and see what eventuates this (insert sarcasm here) exciting summit...

  15. Anonymous06:13

    I have a feeling that the meeting in Budva will be that of a few morons having lunch together trashing their governments for allowing low cost airlines into their home markets.
    If they were competent they would not have driven their own airline into their current state.

  16. Anonymous09:19

    Adria airways with Ou and Bh should create one single carrier, Serbia with Kosovo,Montenegro and Fyrom should create the other one,perhaps including Bulgaria.

  17. Anonymous11:55

    Come on you guys. This making way to the LCCs is just a game that the EU is playing to finally finish the local airlines. The market in the region is rather small, domestic traffic within exyu countries is neglectable. The population is small and the level od development is so far behind when you compare it with EU countries which in line means that business traffic is low. Therefore, it is quite understandable that airlines in the region do not make good business. But, they must definitely be supported by the government.
    We know how EasyJet and Ryanair came today through government support.
    We should open our eyes.
    Check for instance the case of Malev to see how EU is sucking the blood out of underdeveloped new member states. The EU prevented the Hungarian government from subsidizing the airline claiming that it is an illegal aid and this led to the grounding of the airline.
    However, Budapest Airport is sold to a German company only with the condition that a dedicated amount of flights would take place at the airport and if this number is not reached the government is to pay a penalty to the airport. And when Malev is grounded, there is no way that this dedicated number will be reached. And the Hungarian government is now paying to the airport (owned by the Germans) even more than they would pay to aid Malev.
    So, the EC who did not allow the government to pay to Malev and due to this thousands of Hungarians became unemployed and a whole industry is influenced but the EC saw no problem with allowing the government to pay to German owned airport.
    I mean what else we need to say here.
    We should not be very naive when it comes to EU. I am not saying everything should be as 30 years ago but still we should not allow the dreams EU is sugarcoating to us trick us.
    Or a BMW as stated by a previous commentator.

    1. Maybe you are right...but that is what the Hungarians wanted!

      Nobody urged Hungary to become a member of EU.

      Its their own fault!

      EU membership will also destroy Croatia and Serbia...
      but when you ask people there everybody wants his country in EU!

      EU membership is a well deserved punishment for being stupid!

  18. Anonymous13:01

    ^Amaing write up. May I just ask where do you come from?

  19. Anonymous13:05

    ^They still had to shut down Budapest to make up more room for Vienna and the new Berlin airport.

  20. Anonymous01:42

    Germans are evil, they took controle over europe. their influence is everywhere! because they are evil. they sit around all day, drink coffee in small cafes and chat with their friends, and just rule all over us hard-working, usually correctly acting and profit-oriented, reasonable, peaceful and friendly peoples from the balkans.

    i hate this! we didnt want no war in the 90s, the german made us fight! i mean, look at them, when germans meet dutch or danish people somewhere. you can see how much they dislike each other. germany still does not want to recognise the netherlands as a nation. on the other hand germany is officially called "the former alliance-ruled republic of germany" because of the danes.
    this nation is full of problems with their neighbours and problems within its own boarders.

    I am so glad I am from the balkans...

  21. StratosphericKBP08:56

    "EU membership will also destroy Croatia and Serbia...
    but when you ask people there everybody wants his country in EU! EU membership is a well deserved punishment for being stupid!"

    Yes, and that's why democracy should be abolished cause masses are too stupid to decide on such things. They're influenced and brainwashed by whoever.

  22. Anonymous11:25

    "Democracy should be abolished" ? Seriously? Is this your take from all this said and done?
    The people who influence vast majorities should be honorable enough to refuse offer of BMWs or 7 star holiday in the Caribbeans in return for selling their countries out to EU.
    Democracy is a must have and the voice of people must be present in the governance of a country.

  23. Nick Name21:03

    Why should all the airlines go bankrupt individually, when they can unite to form a single carrier which will go bankrupt taking them all down at the same time.

    This would be so much more efficient.

    1. Anonymous02:29

      Right...this would be too good!


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