Croatia Airlines and Air Serbia plan for 2018

The former Yugoslavia's two busiest national carriers have unveiled some of their plans for the coming year, during which the International Air Transport Association (IATA) predicts continued upturn for the aviation industry with greater profitability, propelled by positive factors including worldwide economic growth.

Croatia Airlines enters 2018 with a new management, albeit temporary. The carrier's new acting CEO, Jasmin Bajić, will lead the company until at least May 2018 when the Croatian government will decide whether to extend his term or look for new leadership. Next year, 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 the country's thriving tourism industry. "Croatia has been a tourist hit on a global scale 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", the company said. So far, it has scheduled new seasonal services between Split and Copenhagen for next year and is considering introducing flights between Zagreb and Mostar from June 2018. Furthermore, it will operate a series of charters from Split to Lulea and Umea in Sweden, Molde in Norway and Kuopio in Finland from mid-May until the end of September.

Croatia Airlines further intends on expanding its technical maintenance operations for foreign airlines and widening the existing capacity of the technical centre in Zagreb. Its profitable maintenance division has proved as a significant source of revenue over the years. The carrier is also planning new business partnerships with other airlines, in particular with fellow Star Alliance members. To that effect, last month Lufthansa began codesharing on two domestic services operated by Croatia Airlines, between Zagreb and Dubrovnik, as well as Zagreb and Split, while Air India added its codes and flight numbers onto the Croatian carrier's services from Split to Zagreb, Frankfurt and Rome. In March, Air India and Croatia Airlines signed their first wide-ranging codeshare agreement.

Air Serbia has noted it will continue investing in tailoring the passenger experience, which, in turn, allows it to boost ancillary revenue streams. In a statement to the "Elevate" publication, the airline's CEO, Dane Kondić, noted, "In 2018 we are going to expand our travel options even further to allow guests to personalise their experience with Air Serbia. In fact, we are working on some exciting developments right now that will be introduced next year, but I won't spoil the surprise". The airline is expected to continue evolving its business model to allow it to continue lowering its costs following a string of similar measures this year. Destination-wise, the carrier is unlikely to make major changes to its network as it looks to improve its load factor and ease seasonality. Mr Kondić noted earlier this year that, "The focus is going to be on internal consolidation and strengthening the business before we go on to any major further growth. We have to get better returns on what we have". The planned arrival of two Airbus A320neo aircraft, scheduled for the second half of 2018, remains uncertain.