At midnight Croatia becomes the newest star of the European Union
At midnight Croatia will become the 28th member state of the European Union, ushering in new rules and regulations in the Croatian aviation industry. The new business environment will have an impact not only on Croatia Airlines but Croatian airports and foreign airlines operating to the country as well. The Croatian government approved a final cash injection into Croatia Airlines late last year so as to avoid anti subsidy measures enforced by the European Union. Joining the 27 member bloc does not exclude Croatia Airlines from government subsidies, but does make it much harder to come by and requires approval from the European Commission.
Since European Union based airlines will be treated as domestic carriers in Croatia from July 1 their taxes will be reduced. Similarly, Croatia Airlines will be considered a domestic carrier when operating to any European Union member nation. Furthermore, the Croatian carrier will have more freedom to operate within different EU markets. According to legislation, all EU airlines may operate air services on any route within the EU. However, this move is often too costly for legacy carriers to undertake. It is this legislation that could also harm Croatia Airlines. Low cost airlines registered in EU member states will be able to easily set up bases in the country. Ryanair has already jumped at the opportunity by opening a base in Zadar just a few months ago.
Croatian airports will be the big winners from the country’s European Union membership. EU accession naturally brings with it more investment, tourism and business. In January 2007 Bulgaria and Romania joined the European Union thanks to which the airports in Sofia and Bucharest flourished. In 2006, Sofia Airport handled 2.2 million passengers. This number jumped to 2.7 million in 2007, an increase of 24%. Wizz Air created its Wizz Air Bulgaria subsidiary in 2006, a year before the country joined the EU. At Bucharest’s Henri Coanda Airport, the EU impact was even greater with numbers jumping from 3.5 million in 2006 to 4.9 in 2007, a 40% increase. Croatia’s costal airports have already benefited from numerous pre-membership funds which have been allocated to the development of airport infrastructure.
Do you believe European Union membership will benefit the Croatian aviation industry? Send in a comment with your thoughts.
Comments
Croatian Travellers: yes.
Croatia Airlines: no.
The Croatian government should have undertaken the restructuring process before the country's entry into the European Union. Simply because it will become more complicated for the government to provide cash to the carrier.
Furthermore, now that Croatia is in the EU it means that Croatia Airlines will be exposed to other low-cost carriers such as Ryanair or Wizz Air which can report any malpractice to the European Commission, such as 'illegal' state aid.
All in all, this is really good for Croats and those wishing to visit Croatia but I would not be too optimistic about the national carrier.
What will be interesting to see is if there will be more low-costs landing in Zagreb.
Croatia is great for families and older people. Definitely not for someone like me, 22 years old. There are no great and crazy parties, no music on the beach... way too serious. Though most people are polite and kind.
I will definitely come back to Croatia when I am married with children but until then it's Greece for me.
Best from Groningen.
We will look fwd when u decide to come back again.
Well, Dubrovnik is the epicentre of Croatia's tourism, so if the city itself is not on par with Spain, Greece or Turkey then what can we expect from the rest of the country?
Like I said, the country is nice but it's not a hot spot for those who go for summer holidays to go crazy like they do in Ibiza, Agia Napa or one of the thousand Greek islands.
Some people told us that we should have gone to Istra but meh... it was too far.
Let's hope that with the EU entry they will manage to improve this a little bit. :)
Why should the state and the tax-payers pay for Croatia Airlines ?
If they have an ineffective management, they will get bankrupt !
Only with competition between companies, the customer have benefits !
I look forward to seeing Ryanair, Wizz Air etc. flying from Zagreb to Split or Dubrovnik for just 20 € and not more then 100 € with Croatia (despite state support).
Croats may be proud of Croatia Airlines, Serbs may be proud of JAT, but why should someone pay 200 € from Zagreb to Frankfurt, whey they can fly for 20 € with Ryanair from Zagreb to Frankfurt-Hahn ?
Soon DBV summer festival starts, i think more than 6 weeks of daily concerts, events and theaters in the old town. So u just missed some attraction. But think in general CRO is not to compare with Ibiza, Mykonos, Cyprus or Florida, Mexico during spring breaks.
If u like Carneval for example why not visiting Rijeka in February, it s one of the bigger ones in Europe. Same time u can enjoy wine or olive oil tasting in Istria with friendly hosts who have enough time for u to present their creations
did u see any construction of jetbridges at DBV airport?
http://www.njuz.net/cevovod-za-med-i-mleko-iz-eu-instaliran-na-granici-sa-hrvatskom/
To the young guy who didn't do his homework.... Dubrovnik has always been advertised as a historic and somewhat romantic holiday destination. There are some pretty decent clubs there but still probably not what you were looking for, kind of like going to see the Pyramids in Egypt and expecting to party every day. You probably should have gone to,
Hvar,
http://www.youtube.com/watch?v=EgN0AmMKVns
or Zrce on the island of Pag,
http://www.youtube.com/watch?v=RmU-gREw4qc
and even Makraska.
These places are probably more comparable to what you expect at Mykonos or Ibiza and what you were looking for.
This year Croatian airports will welcome almost 6 millions passengers (fantastic result!)
Croatia will welcome more than 11 millions tourist which will make more 60 millions overnights
Croatia will gain more than 7 billions euros income in tourism sector
Congratulations from Serbia!
У сваком случају, срећно Хрватској мада ето, дан пре вашег приступа Вивијан Рединг је већ најавила могућност санкција.
Very funny because all "Jugoslavians" are such bigmouths !
Svi bi da kazu nesto "pametno" a vecina veze o zivotu nema !
What you've posted is the old paint scheme, with the old name. Jat is now a noun, not an acronym of "Jugoslovenski aerotransport", as it used to be.
http://www.nycaviation.com/newspage/wp-content/uploads/2012/09/jat-airways-boeing-737300-yuanv-gebert-1024-620x412.jpg
Aviation will certainly benefit from a more open market, however there will be losers too.
Moreover, we, the non-EU Balkan 'island' surrounded by EU member states will also benefit from having the union even closer to us. So, I will be one of those celebrating tonight at midnight CET.
Congratulations to Croatia!
OTP has steady growth. SOF is rather stagnating last 2 years.... will see how CRO airports will develop
Also Ryanair can not keep a route if average yield is 150 eur or more per passenger/flt
Maybe Purger has some figures. Btw Purger welcome to the EU and happy party tonight
11 000 000 tourists arrived to Croatia last year.
There is variety of quality level in customer services. Of course, all depends on money you are willing to spend.
For little money that you obviously have spent, you cannot expect service like someone who paid good money.
"Paradajz" tourists have special treatment by law, which cannot be of lower quality than as per special regulations for such tourists.
You may complain and you are entitled to get all your money spent, if any.
There is another way to avoid such a hassle.
Just don't come.
Just keep going there!
Don't eat yourself inside out because of Croatia.
OK, please make your M.Sc. in Electrical Engineering (as I did) or something comparable and then we can discuss whether I am stupid or not.
@JU520 BEGLAX. Not to many, but they are stilll MUCH cheaper then OU or JU.
Split - Munich costs about 350 € during the summer. I bet Ryanair would fly from Memmingen for 20 - 50 € / direction.