![]() |
| Croatia Airlines "happy" with €50 million for ownership stake |
Croatia Airlines’ CEO, Krešimir Kučko, has said the carrier is planning to sell a stake to a strategic partner for fifty million euros. “If someone would want to be considered as a strategic partner, we would be happy with that figure. The key for us is to keep our niche and grow the company”, Mr Kučko said in Zagreb last week. He added, “We have turned the company around. I think investors will be able to see us for what we are: a small and smart air carrier that aptly navigates the global market”. Furthermore, the CEO said the national carrier has good relations with the international consortium Zagreb Airport International Company, which runs Croatia’s busiest airport. According to Mr Kučko, the airline has secured “fair conditions” with the operator.
In late May, the Croatian government formally hired the International Finance Corporation (IFC), the World Bank’s investment arm, to find an investor, after a previous efforts to sell the airline failed in 2013 due to a lack of interest. The majority stake can be sold only to an investor from the European Union, according to EU rules. In March, Assistant Transport Minister, Dan Simonić, said the government was prepared to sell a majority stake in the company, retaining a 25% share in the airline. He added at the time that local pension funds are interested in acquiring 5% - 10% of Croatia Airlines if the government finds a serious strategic partner that will treat the investment as a long-term commitment.
The government has said that a future strategic partner will be required to expand Croatia Airlines' route network and market share, modernise its fleet, further develop its profitable maintenance division and support the development of Zagreb Airport into a regional hub. The IFC is expected to identify potential investors for Croatia Airlines by the end of October. If successful, the sale is expected to be finalised prior to Croatia’s next parliamentary elections, which must be held on or before February 20, 2016. Croatia Airlines is in the final months of a four year restructuring program which has seen the airline return to profitability but also limit its opportunities for growth.

Comments
veze
Is there any value in this company at all?
It would be better to completely change the network to "point to point" traffic on a LCC model. Make turnaround times be 30 minutes, no connections. Bases at all the coastal airports. Attract holidaymakers with cheap fares.
Have the core Airbus fleet, then also buy a few 20 year old airbuses for cheap to fly during the summer only.
Most of the airline traffic to Croatia is either leisure or diaspora. They look for cheap fares, and it doesn't matter to them if frequency is 3-4 times per week.
If and when Croatia Airlines gets sold and if it is a serious buyer, Air Serbia will have a lot competition on its hands. Because apart from creating a good network from Zagreb (which is not prone to seasonality so much) you will have all those things you said - tourism, many airports etc plus your country is in the EU. Air Serbia got a head start and was lucky that Croatia Airlines was in restructuring. It should have expanded more aggressively before it becomes too late.
* Pula
* Zadar
* Split
* Dubrovnik
* Sarajevo
* Mostar
Those routes for sure are not questionable. But, in
* Skopje
* Podgorica
* Priština
* Tirana
* maybe Ohrid and Tivat they have to compete with Air Serbia and it is all about mathematics
You can see that even Air Serbia is not doing well in third markets like Tel Aviv, Beirut, Budapest, Warsaw, Varna... so it is all about exYu basically. In that case Zagreb has very good chance especially that Adriatic routes are well done in summer (32 frequencies with more than 90% LF) and in winder they are OK because there is almost no alternative to Zagreb. That is much better starting position than Belgrade. Mostar, Sarajevo, Podgorica and Tivat have much better deviation via ZAG to central, west and north Europe and cost of those flights are smaller via ZAG than BEG. Also ZAG has much more tourists than BEG, bigger GDP and trade, Croatia is in EU... The only thing that is missing here is good company. And that can be changed with good investor. If not Zagreb has no chance compare to Belgrade. But if yes, Belgrade and Air Serbia will have huge competition in Zagreb with much bigger chance on Zagreb side.
I'm not sure if Zagreb has more tourists than Belgrade. Could you give me the source?
Btw I doubt they can do anything before te new terminal at ZAG opens, and that will be in 2017. By that time Air Serbia will probably have flights to the US and maybe Canada, and I really don't think there are chances for someone introducing flights from ZAG to North America as exYu market is not so huge that both ZAG and BEG could have those flights. Between 2018 and 2020 ten new airplanes will be delivered to Air Serbia, so it's logical that they will launch new routes, I doubt both OU and ZAG can overtake ASL and BEG.
turist/nights
Zagreb - 219.108/395.462
Belgrade - 198.273/441415
http://www.srbija.travel/download/dokumenta/januar-april-2015.pdf
http://www.zagreb-touristinfo.hr/media/press_corner/hr/2015_05.pdf
Actually what you meant was how they DARE trying something (in Business) which is by the God, by the Party, and by His Premierial Highness supposed to belong to BEG, oh the allmighty and only
INN-NS
INN-NS
broj stranih turista u 2014.
968.000 Zagreb
717.000 Beograd
Povećanje broja turista u usporedbi sa 2013.
13% Zagreb
12% Beograd
Broj noćenja u 2014:
1,6 milijuna Zagreb
1,5 milijuna Beograd
5 najvećih nacija po broju dolazaka (ovo pokazuje kako dolaze u grad):
Zagreb:
1. Korea (67.670)
2. Njemačka (61.664)
3. Italija (45.234)
4. SAD (43.746)
5. Japan (33.444)
Beograd:
1. Hrvatska (38.638)
2. Njemačka (37.105)
3. Slovenija (36.611)
4. Turska (36.537)
5. BiH (29.670)
Izvor:
http://www.zagreb.hr/default.aspx?id=1031
INN apsolutno netočno. Oni dolaze ili charter avionima (poglavito Koreanci i Španjolci) ili najčeće Katarom, Turkishem, Lufhtansom, ali dobar dio i Air Franceom, KLM-om i Britishem. Iberiom, TAP-om, Austrianom, Vuelingom...
It's absolutely impossible for ZAG to overtake BEG. And course OU isn't limiting ZAG growth when it isn't able to do it. If OU doesn't find some strategic partner I doubt it will survive in the next few years.
INN-NS
Dakle velik broj turista dolazi avionom. Među deset najzastupljenijih nacija svakako su Španjolci, Britanci, Amerikanci, Kanađani, Japanci, Koreanci i Francuzi. Njih sve zajedno ima oko 250.000 godišnje. Svi oni u Zagreb dolaze u velikoj većini avionima. Dobar dio Njemaca, Skandinavaca, dio Talijana, Nizozemaca, Belgijanaca, kao i niz drugih (Rusi, Turci, Poljaci, Australijanci...) dolaze avionom. Dakle ne razumijem što ti želiš reći.
Anonymous:
They do come from Asia to see Zagreb. Especially Koreans. It is good work of Zagreb tourist board, several TV shows that was broadcast in Korea and those were filmed in Croatia and Zagreb, product that they have in Zagreb (not just sightseeing but also events, visiting countryside including "happening on farm" with domestic food, folk dance, local orchestras etc.)...
To za koreance je odlican posao , najvise ih prevozi Darojkovic sa Aerodroma .
INN-NS
INN-NS
If BEG can be a hub then so should be ZAG or LJU.
INN-NS
OU needs to cut number of management positions by half, and let off few more staff, ideal size for OU is around 800 staff, naturally once OU hits 20 aircraft it'll have to hire 400 additional staff.
OU is getting there, at least hey recognize the fact that they need to make Zagreb airport more important that it was so far, right now international carriers at Zagreb control 43% of airport's traffic (2014 result), 2015 might see this %g go up to 50%, OU is loosing market share at home, things don't look great unless OU starts to expand and offer more choice of destinations.
Actually it is well known fact Zagreb has more tourists than Belgrade, Zagreb has same number of tourists as entire Serbia, If you exclude day visitors that is. Zagreb had 1.75 million overnights in 2014 and 1 million visitors, if you add day visitors from Austria, Hungary, Slovenia, Germany, Italy, you end up with 2.7 million visitors and city recorded revenue or around $520 million in 2014. This number is set to rise across the board, yoy Growth is 15% for first 4 months this year year, 1.1 million tourists are expected and nearly 2 million nights, add day visitors 3 million mark can be achieved this year.
BTW, Many day visitors visit Zagreb on their way to the coast or on their way back from the coast.
Not related to ex yu but bit of EY info for anyone interested. EY is suspending Yerevan, and has cancelled plans to launch Baku and Tiblisi. It also reduced Lagos and one other destination. Also in March their LF on DFW route was 37%, which proves that other big airlines are also struggling on some routes.
“Air Berlin and Alitalia operate transatlantic flights, so we have no need to use fifth-freedom rights,”
That pretty much excludes EY from flying AUH-BEG-USA, esp with current US3-ME3 row. On the other hand, it also indirectly points to Air Serbia as a next carrier of choice for future TATL expansion among European EY partners. Nice!
Air Serbia will likely have to use own metal for TATL
How long before official announcement?
based on what you presented here it does not mean anything. I really dont get how you came up with that sentence. Care to elaborate.
INN-NA
There is no hierarchy in airline business models, being a hub airline isn't some kind of top quest that all airlines should strive for. There are other business models that can be successful, and in CTN's case, I think that having a route structure that favors point to point traffic rather than transfer traffic is more favorable.
Running a hub operation is very expensive:
-Requires extra staff to cover waves
-Requires smaller planes and higher frequency
-Requires keeping unprofitable routes to maintain a network
-Requires longer aircraft turn around time because here is a need for carefully planned waves
-Transfer passengers are remarkably low yielding
Because of all this, Croatia Airlines has one of the highest costs per air seat mile in Europe.
At the end of the day, the volume and yield of transfer traffic that is flown by Croatia Airlines does not cover the additional costs incurred by having a hub operation, and then these costs are transferred to the O/D passengers. Because of this, lots of people are avoiding flying from ZAG because it is more expensive than competing airports.
So what kind of business model could be better? Just like Wizz Air is flying from every village in Romania, And they are doing it profitably, so should Croatia airlines make bases from coastal airports. Lots of the routes would be 2-3 times per week, but it won't matter because leisure and diaspora traffic isn't time sensitive, but they are very price sensitive.
So, my conclusion is: hub operations are rather expensive to run, by reducing frequency, moving to larger planes, and cutting out waves from network, CTN could cut costs drastically and offer much cheaper fares to O/D traffic. This would stimulate passenger demand, and overall increase the number of passengers carried.
Article also says "Although several of the United Arab Emirates’ (UAE) air services agreements allow Etihad fifth-freedom rights, the carrier has no plans to exercise those rights". In regards to AB and AZ, he said "The two carriers also are building their route structures to Abu Dhabi, giving Etihad increased connectivity to the transatlantic market".
Similar will be true for Air Serbia once they start TATL flights. For example, Etihad does not and can not fly daily from AUH to YYZ, while Air Serbia could complement that offering by allowing Ethidad passengers to connect through Belgrade onwards to Toronto on days when EY does not fly to YYZ.
Questions were posted after Serbia-USA bilateral agreement if Etihad could use it to fly Abu Dhabi - Belgrade - JFK or some other destination. This quote from Hogan clarifies that EY won't do it.
That leaves some US carrier or Air Serbia as future TATL carrier from Belgrade. It is unlikely any US carrier wants to fly the route, so that (and previous statements from Hogan) leave Air Serbia as a next choice.
I što bi koreanska zastava naprijed na busu trebala značiti, koji bi ona trebala biti dokaz? Zasigurno ne znači da putuju za Zagreb, zar ne?
Darojkovic opet kazem kupuje jedne od najskupljih buseva i ko ima poznastva zna da to nije lako .
Njihovi busevi su poprilicno novii tih 26 buseva vredi vise od 4 mil eursto u opste nije malo po meni.
INN-NS
INN-NS
INN-NS
Autopromet Sisak
AP Varaždin
AP Imotski
AP Požega
Autotrans Rijeka
Autotransport Karlovac
Croatia Bus
Čazmatrans
Panturist
Presečkibus
Promet Makarska
Promet Split
Samoborček
ZET
It's going to be a financial disaster.
Air Serbia is fart better off code sharing on Alitalia's and Air Berlin's transatlantic flights.