Croatia Airlines is preparing to float a request for proposals (RFP) on the market to finance its order of four Airbus A320neo aircraft, the "Airfinance Journal" reports. Banks and other financial institutions are the most likely bidders. According to its 2015 agreement with the European plane manufacturer, Croatia Airlines is to begin advanced payments for the aircraft this year, while the remainder will be payed upon their delivery. The first two jets are scheduled to arrive in Zagreb in 2021, while the other two are due a year later. However, sources claim the carrier is considering an interim lift before the delivery of the A320neos, meaning it could lease aircraft from Airbus prior to 2021.
Croatia Airlines successfully converted a 2008 order for four A319s to the A320neos two years ago. Although the new aircraft were originally to be delivered by the end of 2013, their arrival was put on hold and the deal was renegotiated. The carrier put off the arrival of the jets due to the company's financial situation. Neither Airbus nor Croatia Airlines have disclosed the exact cost of the aircraft, however, the four jets were valued at $424.8 million at list price at the time. On the other hand, the carrier's CEO, Krešimir Kučko, said the deal is worth "almost the same" as the one agreed on in 2008. Croatia Airlines will become the second carrier in the former Yugoslavia to operate the NEO jets, with Air Serbia to take delivery of its first of ten aircraft of the same type in the second half of next year.
The A320neo aircraft are designed to operate quieter with lower operating costs. The single-aisle jet is fitted with engines which Airbus estimates will offer 15% fuel savings and emit 3.600 tonnes less carbon dioxide per aircraft each year. In addition to the NEOs, Croatia Airlines is also looking to add 100-seat regional aircraft to its fleet in order to bridge the gap between its Dash 8 turboprops and Airbuses. "We are considering the Bombardier CRJ, Superjet SSJ100 and Embraer E-Jet", Mr Kučko said recently. The company currently boasts a fleet of twelve aircraft. Five of them are owned by the carrier itself (four A319s and one A320), while the rest are on lease. Next year, the carrier will have to decide whether it will extend the financial lease agreement for its six Dash 8s.
Comments
Good luck Croatia Airlines you will need it
This would be great. The neo deliveries are a long way away and by the time they do arrive the A319s will be over 20 years old.
Perhaps if the company invested in a successful and proven CEO. I have no likes or dislikes for the current CEO but reading all these hair brained ideas that look like grasping at straws.
I'm all for nation pride and a national airline to feed a countries ego but in all honesty Croatia is wasting its tax payer money in a business stratergy that doesn't seem to exist.
Perhaps the company is an empty vessel of greed, corruption and tax write offs. But hey, how would I know? I'm an anonymous blogger.
Split airport in January
25.958 / 30.423
+17,2%
+4.465
Dubrovnik
15.666 / 19.239
+22,8%
+3.573
"While you would think the CRJ would be a better fit for the fleet given our existing Bombardier operations, that isn’t the case. Manufacturer commonality isn’t such a huge advantage when you operate turboprops but want to introduce jets".
Kresimir Kucko
"CS100s will be bought to add the fleet, however they won't join the fleet before 2018.
Talks with Bombardier have been going on for ages now, agreement is in hands. Q400s will remain on lease to own and CS100 will also be on lease to own, once the last A319 is retired, additional A320neos will be bought on lease to own and additional four CS100s will be bought. this is what I think it'll happen".
P.S. New terminal (building C) in DBV will be opened this Monday!
original order was 4 a319 in 2013
new order is 4 a320neo in 2021
first of all it is hard to believe they were able to keep the same prices? i can explain this only with €/$ fluctations and that original contract was in $, so when $ jumped 30% compared to €, the value of the contract remained the same in $ and airbus expenses are mostly in €, so they don't care that much.
anyhow, if i was a banker, I wouldn't touch this with 40ft pole. such a doomed project
if the list price is 424mil$ and OU got a, let's say, 30% discount it means the value is around 300mil$ total or 75mil$ per a/c.
if they were to pay it in the period of 10y, that is additional cost of 30mil US$ per year for all four or 7.5 mil$ per a/c.
they can cancel only one leased a320 and replace it with one neo. so if they are paying lease of that a320 some 200k$/m, that means they can offset about 2.5mil$ of costs. that leaves us with 27.5mil US$ of additional cost they will create.
hopefully they didn't payoff yet 4x319 and 1xa320 so they can sell them and offset loan costs. but these birds are very old, so i doubt it.
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so how in the world will OU create additional 27,5mil$ worth of profit each year for 10 year when they are struggling with profitability even now???
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i see several options for them:
- government help partially
- sell 3xa319 and 1xa320 for whatever, sell remaining heathrow slots to get some additional cash
- sell some of those neos if the contract with airbus allows it
- drop down the pants, oil the buttocks, go to airbus and try to renegotiate something
if you want to work in this region you need to fly old, rented planes
the same goes for JU
They're configured for 164 seats in two classes, 32inch pitch.
There's too much corruption in Croatia, we need to bring it down before we can see changes. Also OU is no longer financed by the state, it has to raise all its funds through operations...
Emirates wont fly to EX-yu and OU uses the money to pay for engine repairs solely. Yeah right!
Started from 23.06.2017 until 15.09.2017
Wizzair will fly the A321 to LJU starting 16SEP!
So LJU will finally have positive results in 2017 and might overtake SKP once again.
and i just don't see them creating the added value needed to repay those planes, or getting support for 10y while paying of these planes.
i don't have the idea where will they find the money, especially in this region.
for one, i would never lend them (if i had it, of course:) )
Jan 2016: 157 111
Jan 2017: 168 788
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That's +7%, not 9 :)...with 9% would be 172 650
Typo, was suppose to say 7%, but couldn't go back and edit it. Actual number is 7.4% when things seemed it'll be only 1-2% growth due to several airlines reducing or not flying to Zagreb. Good result for Jan.
Russia namely OKB Sukhoi makes some of the world's state-of the art military aircraft and has a much longer tradition in aeroplane building.
Thnx