Croatia Airlines plans to further expand its network in order to keep up with increasing demand for leisure destinations. The carrier says that additional growth will be fuelled by Croatia's thriving tourism industry in the years to come. Apart from the four new seasonal routes being launched out of Zagreb later this week, Croatia Airlines also introduced another four summer destinations last year. "After several years of recession, there is a slight recovery in the Croatian economy and the market requires new leisure destinations. This is why we expect that many travellers, both from Croatia and our new markets, will use our products more", Croatia Airlines' CEO, Krešimir Kučko, said. He added, "Croatia has been a tourist hit at a global level for several years, not only during the summer season but also in winter. In accordance with these trends and our capacities, in the future, we plan to further expand our European network of destinations and strengthen our position as a regional leader".
Croatia Airlines faces strong competition as low cost and leisure carriers continue to dominate along the coast, with their numbers growing year-on-year. Furthermore, legacy carriers are increasingly starting to take note and are launching seasonal flights to leisure destinations in Croatia. This summer, KLM introduced services to Split, LOT Polish Airlines and Lufthansa to Pula, while British Airways will also commence flights between London Heathrow and Pula later this summer. Last year, Croatia Airlines' market share in its home country averaged only 20% during the peak summer months of June, July and August, when it generates the bulk of its annual traffic. "In the last few years our market has been inundated by competitors such as KLM, Qatar Airways, a bunch of low cost carriers and many others. Under these circumstances it is logical that our market share has decreased", Mr Kučko previously said.
The airline's CEO noted that out its four upcoming new routes from Zagreb, Oslo has proven to be one of the most successful. "Our four new routes this year have been introduced based on internal analysis and market research, which showed significant potential in the Scandinavian and Romanian markets. So far, there is great interest for flights to Oslo and this route has proven to be a big hit", Mr Kučko said. He added that bookings for its four seasonal routes launched last year have now exceeded the total number of passengers transported on these flights in 2016, which the CEO says "confirms the fact that we have made the right business decision".
Comments
Say what you will about Dane but his interviews always seem to be above politics and devoid of petty regional squabbles and envy.
I have never seen so much fake announcements and empty, meaningless talks from Vardar to Triglav. This is truly and utterly shocking.
The whole region has turned into some bizarre PR land where real activity is nose diving to the ground and the only thing that is truly booming is the industry of cheap announcements, fake considerations, and badly photoshopped renders. Matrix at its best, not only in aviation.
Just to clarify: there is absolutely nothing to blame on the admin. He does his job professionally and he has to work with what is available. Such a shame he does not cover some region where something real is going on.
Bulgarian market: SOF to compete with JU on Balkan cities. Now connected with many CEE capitals excl. ZAG, LJU
Spain market: MAD business recovered a lot + code share with IB - excellent connections to Latin America
Ireland: DUB - now on the rise after Brexit
As you can see, lots of opportunities for OU.
I'm a huge supporter of Croatia having its own national carrier but without innovation, without a detailed business case to show it all seems like bright ideas with no basis.
Flick this cowboy CEO, invest in a CEO that has experience, vision and innovation and then let's see what he future holds. I'm certain it would be far more successful if there was a experience aviation visionary running the show.
Either way I wish the future endeavours well but think this could be a hell of a lot better.
There needs to be innovation and I agree. examples are:
-Easier, simplified booking online booking system
-Seat selection at time of or post booking
-One stop shop such as hotel bookings, car rental, tour bookings at time of reservation. Imagine buying ticket to Zagreb and prepaying a bus ticket at time of flight purchase.
-Align itself with tourism industry partners so Croatia Airlines can sell products via its website.
Has the CEO of Croatia Airlines heard of Air Asia, Qantas or Easyjet where you can book everything at time of ticket purchase? Why is Croatia Airlines not charging for more ancillaries? I believe Qantas makes more money for, ancillaries such as excess baggage, seat selection, hotels etc than any other airline in the world and it's a full service. Premium airine.
I'm no arm chair CEO but I agree with anon 9.39am that OU needs to be one step ahead of innovation and bring the power of other Airlines and adapt it to its business.
- Montenegro: JU 40 flights, JP 7 flights, OU 0
- Albaina (JU 7 flights, JP 10 flgithst, OU 0
- Kosovo (JP 14 flights, JU and OU 0)
- Hungary non of those have flights
Even in Bosnia OU is not so big, as OU 13 flights, JU 10 flgihts, JP 7 flights.
Other (network) airlines are also doing this. These weeks could be used e.g. for base maintenance..
If Croatia is a holiday destination then make the airline the one stop holiday booking service and make money from ancillaries. No airline makes money from flying customers from A to B but making money from +++ after making the flight reservation is how Airlines stay afloat in today's world.
This business has a good foundation and needs to be built on innovation. Perhaps a little investment in that before investing in routes would be a visionary idea?
Congrats OU and great news for Croatia
I can't say I agree with what you are trying to say
+1,000,000,000,000
Also JU has 10 flights to LJU and 18 weekly to Macedonia
1.19, correct Air Serbia hub passengers on intra-European services which is crazy considering low cost carriers do it non stop for cheaper. Its like Air Serbia is trying to be the Etihad, Emirates or Qatar hub airline for Europe. It works for ME3 carriers because of the vast distances they fly.
Croatia airlines needs a revamp badly!
Today they had interviews with Jure Šarić and other two members of selection committee which are not from air-business.
2 candidates were eliminated as they did not meet the criteria
final candidates are
- Krešimir Kučko, present CEO
- Jasmin Baić, present Director of Controlling and Internal Audit at Croatia Airlines
- Boško Matković, ex Zagreb airport CEO
- Tonko Rilović, ex Director of Marketing of Croatia Airlines, present head of London office of Croatian tourist association
- 2 more candidates that I don't know their names
With Rilović and Baić I was in 3 8-hours meeting as they were in same positions whan Srećko Šimuunović was CEO.
They're bound to do that by 2020.
They started with twice weekly service in 2012 I Think, soon it went to trice weekly service and now 5 weekly flights, they extended the season from July and August flights to May to late October.
Perhaps they'll consider trice weekly service in winters from 2019 and daily service or 6 weekly flights from May 1st to October 31st.
Forgot how many Spanish visitors in Croatia in 2016, i know it is over 220 000. Zagreb had 12 000 Spanish visitors in 2016, nearly 1% of all foreign visitors in Zagreb. 15-20 000 Spanish visitors are expected this year in Zagreb. current projections of 30-32 000 Spanish visitors in Zagreb by 2020. This would clearly demand some sort of daily flights between the two capitols.
And Vueling is looking to expand in Zagreb in coming months and years, things are bound to become quite interesting.
Currently OU has a fleet of 12 aircraft and wet leasing two.
On order 4 more A3320 Neo and before 2020 most probably 6 CS 100 will join the fleet. So by 2022, OU will have a fleet of
6 A319
2 A320
4 A 320 Neo
6 CS 100
6 Q400
22 aircraft in total, however expanding to fleet this size right now, would be stupid and suicidal. Airline barely makes profits as is.
OU will expand, but gradually. however OU must expand its network to at least 40 destinations. It must keep busy in winter times, especially during December period, when Zagreb attracts 100 000+ foreign visitors. This number is bound to triple or quadruple by 2020, As Zagreb Advent becomes a major thing.
And keeping airline busy with 40 destinations could prove a success in winter months. All they need to do is brake even in Winter months, as they make massive profits in Spring and Summer months, and soon in December.
+1
4 A319
2 A320
4 A 320 Neo
6 CS 100
6 Q400
22 aircraft.
http://www.exyuaviation.com/2017/01/transavia-and-volotea-plan-zagreb.html
Sad jasnije?
What a lost opportunity to bring in a proper outside airline professional. There are so many good high calibre Croatians working with other European airlines who know their shit and are not tainted.
Shame .... expect more of the same nothing with this lot
My vote for MVP - no contest
You mean, that one that said he's a steward for OU so he flew on every flight?
Lease to own, same way they've got Q400s, lease to own, airline buys an aircraft on 10 year lease and final agreed payment. OU purchased 6 Q400 for $150 million, next year all aircraft will be finally paid off. After that OU can agree CS 100s on same deal, 6 CS100 for $250 million paid over 10 years on lease to own. OU will need to improve load factor somewhat, 70% lf is really low. Most EU carriers have 75-85% Load Factor.
SPU-MUC
SPU-FRA
SPU-FCO
DBV-FRA
+code-share on LH SPU-MUC
- Josip Milošević air accidents investigator
Purger himself can have an opinion if he has the capacity for the job or not, but overall, apples and oranges.
Unfortunately most of previous CEO, including present one were also not even near.