Croatia Airlines begins A320neo payments


Croatia Airlines has confirmed it has begun advanced payments for its order of four Airbus A320neo aircraft, which will result in their arrival in Zagreb in 2021 and 2022. The Croatian carrier will make several advanced payments, after which the remainder will be payed for following the arrival of the jets, with the first two due in three years time and the remaining two a year later. The airline has also considered an interim lift before the delivery of the A320neos, meaning it could lease aircraft from Airbus prior to 2021, however, this is unlikely to materialise. The new generation Airbus planes are set to replace a part of Croatia Airlines' existing fleet.

The Croatian carrier successfully converted a 2008 order for four A319s to the A320neos three 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 delivery 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 US dollars at list price at the time. On the other hand, the carrier's former CEO, Krešimir Kučko, said the deal is worth "almost the same" as the one agreed on in 2008.

The A320neo aircraft are designed to operate quieter with lower operating costs. The single-aisle jet is fitted with engines that Airbus says offers 15% fuel savings and emit 3.600 tonnes less carbon dioxide per aircraft each year. Airbus' Vice President Central and Northern Europe, Kimon Sotiropoulos, previously said, "These aircraft will give Croatia Airlines access to the most modern aircraft and extend the partnership between both companies well into the next decade". The Croatian carrier currently boasts a fleet of four A319s, two A320s and six Bombardier Dash 8 Q400 turboprops. The latter's operating lease agreement was recently extended. In addition, the airline has been wet-leasing two CRJ1000 aircraft from Spain's Air Nostrum between May and October for two years running.

Comments

  1. Great to hear!

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    Replies
    1. So Croatia Airlines ordered 4 of these planes, any options for more?

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    2. Four new A320NEOs will be added to the existing fleet, won't replace existing A320s and A319, plan was orignally to replace A320s, but also an order for 6 100seat jet was also under consideration.

      Plan is to keep one A320 and 4 A319 in service at least till 2025, to fly in summer season covering any holes until new aircraft are chosen to replace A319.

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  2. A good chance to update the livery.

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    1. Croatia has one of the most stylish liveries in the world.
      It's very modern and, for such a small airline, quite recognizable.
      No need to change something that's good.

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    2. Their livery is great, but could use some refreshing!

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    3. The livery is boring. If it's simple, it doesn't mean it's stylish. It's quite conservative and old fashioned.

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    4. “One of the most stylish liveries in the world”

      Haha! Whatever you say, sweetie. Everything in Croatia is the best in the world. With largest number of tourists in the world.

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    5. First, Croatia Airlines needs to update their visual identity, but that isn't the No1 priority right now.
      Secondly, where did anyone say that "everything in Croatia is best in the world with the largest number of tourists in the world"?

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  3. A320neo is well suited for Croatia Airlines and will really help during the summer in terms of capacity.

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    Replies
    1. But what will they do during the winter? Their average annual LF is currently 70%

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    2. They will fly with 60-70% L, what is the problem?

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    3. ACMI leases. I'm surprised they haven't done it already during the winter time.

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    4. I agree with the idea of ACMI wetleases. This is something they could have been doing for years. A good idea in my opinion.

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    5. No one needs aircraft in the winter.... where are they going to send them ?

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    6. There are markets outside of Europe.

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    7. How about domestic routes, ZAG-DBV and ZAG-SPU which, even during winter, have great LFs?

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    8. Domestic routes have higher LF during winter precisely because excess capacity is not dumped there. ACMI leases are not revolutionary idea, as there is a big issue of overall overcapacity during winter - where to offload spare capacity, that is the problem...OU is also a victim of high seasonality of the market. I am sure they could do that capacity changes better than now, but it is not as simple as imagined in the comment section here.

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    9. The problem of wet-leasing in winter is not the demand nor the markets (there are many markets which in EU winter need excess aircraft such as India!) The problem why OU doesn't wet-lease in winter is the Croatia Airline collective agreement, which placed pilots and air hosteses in extremly good position which can ruin the company.

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    10. :@
      AnonymousMay 4, 2018 at 9:06 AM

      No, OU's average load over entire year is around 75%, over winter it is 70%

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    11. Hopefully winter traffic will raise In Croatian airports by then. Currently it is rising like 10% per year. So in 3-4 years it should be a nicer winter LF

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  4. Great news indeed, putting other legacy airlines to shame when it comes to fleet. I hope JU follow their example.

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    Replies
    1. Really? They are currently flying numerous wet leased aircraft from unknown airlines.

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  5. What about regional jets? The can't wet lease CRJ1000s forever.

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    Replies
    1. 4 X A320N could replace airbuses in todays fleet.
      They need manage to replace 6X Q400 with 8-10 X 100 seater, it will be nice fleet for OU.

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    2. Croatia should add 4 100-seaters while keeping q400s in fleet. These planes are great suited for some routes, moneymakers.

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  6. You would think it would make more sense to than start using these planes now.... in other words have them delivered ASAP with what every they replace becoming dedicated charter (coastal focused) tourist movers and then parked or if possible leased out in the summer.

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  7. Interesting how they sold their LHR slots to pay for maintenance yet they have cash for these planes.

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    Replies
    1. bank loans.

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    2. Bank loans have to paid back ... with interest.

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    3. Good the interest rate is 0 for the last 5 years already and will continue to be so in the EU Zone.

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    4. You have to be crazy to buy new aircraft with this financial status of the company. Why not lease maybe 10-year old aircraft, it's probably half the price?

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    5. @AnonymousMay 4, 2018 at 9:31 AM

      it is not 0, it is around 1-2% at most. Croatia just issued sovereign bond on financial market to raise €1.24 billion @2.3%, to repay old medium-term loan @6.1% annual rate Croatia took in 2013.

      So it is quite likely OU would have gotten loan at similar rate.

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    6. Anon@5:53! Great comment👍🏽👍🏽👍🏽

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  8. They need them as soon as possible. They keep cancelling flights. This is just a recent list

    https://imgur.com/9k5hhvk

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    Replies
    1. Actually getting them ASAP might make things even worse. Those cancellations and delays are happening because they don't have enough mechanics to service their aircraft.

      All mechanics have left the sinking ship. They went to work elsewhere where salaries are paid on time and from which they can actually make a decent living.

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    2. Have they cancelled any flights from SPU in April? Maybe that's why growth was so low?

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    3. Growth at SPU is 14%. You have to look at both March and April together to compensate the Easter holiday effect which shifts year by year ;) For that reason a very solid growth for SPU.

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    4. All I am seeing is excuses. April last year saw very good growth and so did March.

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    5. Excuses? That is mathematical and logical facts.

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    6. It's spinning of facts. Since you like maths so much look at the one ladt year.

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    7. Oh surprise! March last year was weaker than March 2016. Surprise, Easter lay in April last year, oh surprise, the summer timetables come into effect end of March. Surprise again, April was so strong last year with all seasonal lines starting and seats being sold so people can actually book flights during the Easter holidays. This year March is 60% stronger with almost same number of operated flights. April does not have Easter effect but still on par with last year (+1%). So many surprises here- in the end SPU grew 14% during the two months ;)

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    8. Both Split and Dubrovnik had a good run thanks to the geopolitical developments during the last 3-4 years but it was obvious that the peak was close (all service prices including restaurants, cafes, hotels, airbnb rooms etc. increased at least 2-3 times in less than 5 years, resulting in expensive and overcrowded experiences).

      Passenger growth will most probably remain below the capacity increase this summer in SPU and DBV, leading slight drops in load factors and yields, meaning that the airlines' risk appetite won't be as high as this year. All good things must come to an end!

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    9. Plus DBV already forecast their growth at 10% which is in line with standards at other airports excluding those that are booming like LJU, PRN or SKP.

      What's interesting is that DBV was actually busier than SPU in April.

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    10. Tourist numbers to Turkey have jumped by 36% in Q1 while Thomas Cook bookings for Egypt have grown by 80%.

      All these went somewhere else for their holidays last year.

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    11. Yes from virtually zero, 80 % is a huge jump :D- OK Russians are allowed to go back to Egypt and Turkey.

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    12. They were far from zero.

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  9. OU also leases E-175 from Peoples Viennaline on their route to Zurich...yesterdays flight was operated by that plane

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    Replies
    1. They have also been wet leasing Air Explore, BH Air and Get Jet planes.

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    2. I haven't heard of most of all these airlines.

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    3. Me neither. Who knows what they are, sounds sketchy.

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    4. Bottom-feeder charter/ACMI operators, that's what they are.

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    5. Peoples Viennaline is actually a very reknown boutique airline - I can't believe you call them sketchy. I am sure every passenger was more than pleased with that upgrade in travel experience.

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    6. As I am sure Croatian passengers all know about the world famous People's Viennaline...

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    7. Once you have travelled in their Embraers, enjoying their service, you will know and remember - particularly compared to OU, JU etc.

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  10. Does anyone know what will be the capacity of these neo jets?

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    Replies
    1. So, all economy class such as W6? I hope there will be enough legroom.

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    2. The NEO has more capacity due to a different cabin layout.

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  11. Having in mind recent developments, will there even be a Croatia Airlines by 2021 to welcome these planes, lol?

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    Replies
    1. Agree, OU doesn't look good right now!

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    2. dont worry it will ;)

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    3. Not so sure ;)

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  12. New aircrafts are the least necessary thing what OU needs. Those planes are too expensive. The only smart thing to do is to buy them and lease them out.

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    Replies
    1. And fly with what, by that time 25 year old planes?

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    2. 4 320NEO is not needed. What they need is more CRJ planes. Cheaper, smaller, more flexible for both seasons.

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  13. I'm surprised they are not doing a sale and leasebacks for these aircraft.

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    Replies
    1. The contract with Airbus might noy allow it. Dometimes there is such a clause that they cannot do it

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    2. *sometimes

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  14. I'm interested to see how their fleet will develop in the next few years. The neos will be a great addition.

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    Replies
    1. Agree. Happy that new aircraft are coming.

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  15. They got a better deal then Air Serbia which will get (if they get) 10 A320neo leased from Etihad. As with everything in the company Etihad will just rip them off.

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    Replies
    1. You mean just like LH is ripping OU off for transfer passengers?

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    2. Wonder if Air Serbia will be around then.

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    3. Newsflash: Serbia is not in the EU.

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    4. Weren't some of the 10 A320neos of the Etihad deal anyway meant for Air Seychelles and one more EY group airline? So JU would end up getting less than 10 aircrafts in any case.

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    5. No, all 10 were originally planned for Air Serbia.

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  16. Bravo Hrvatska!

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  17. Alen Šćuric Purger4 May 2018 at 12:16

    Zagreb-Dubrovnik CRJ-1000
    4.5. u 12:05 Croatia Airlines by Air Nostrum
    100% overbooked

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    Replies
    1. Wow no way... no wonder DBV boomed last month.

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    2. 100% overbooked means there were twice as many people who showed up for the flight than there were seats.

      Purger, you probably meant 100% booked. But thanks anyway for the info.

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    3. Unless the route was supposed to be operated by a full A320 and then got downgraded to a Crj because the plane is still not fixed.

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    4. Still, is the seating capacity on a CRJ half that of a A320?

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    5. I think he meant 100% full; overbooked.

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  18. EXYU kad će fotke i tekst o jučerašnjim novim linijama za Dublin i Mostar ?

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  19. How will they mask a minus now? Lol.

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  20. Negative results in Q1, extra wet leasing costs in Q2, many cancelled flights, no technicians available, advanced payments for A320neo...
    Bye bye LHR slots

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    Replies
    1. Pilots ready for strike in OU

      http://www.index.hr/vijesti/clanak/propada-li-croatia-airlines-piloti-spremni-na-strajk-otkazuju-se-letovi-ovdje-je-kaos/1042550.aspx

      "...Ako kompanija hitno ne promijeni stanje, ova firma će nestati za dvije godine", upozorio je Šćuric."

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    2. A sto da promijene?

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    3. Kad Vlada Srbije finansijski pomaze JU svi se bune i napadaju JU, a kad OU dobija novac iz EU fondova (gde JU nema pristup) onda je to sve sasvim u redu...

      "Za napomenuti je da je Croatia Airlines uspješno sudjelovala u jednom velikom projektu povlačenja sredstava iz EU fondova, što je odobreno početkom ove godine, pa su dodatni tehnički zahvati (koji su djelomično uzrokovali kašnjenje radova) upravo bili vezani za korištenje odobrenih sredstava EU fondova - izvođenje modifikacija u sustavu navigacije na Q400 floti - financirano sredstvima fondova EU-a", kažu u CA-u.

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    4. Does it mean OU received subsidies?

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    5. God. This is bad.

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    6. Razlika je u tome da se sredstva EU fondova moraju trošiti transparentno i isključivo u oređenim projektima npr. zaštite okoliša i sl. I nakon toga slijede gomile inspekcija i audita. Da li ti znaš kako se priprema projekt za povlačenje sreadstvana iz EU? Gdje su projekti u koje je Vlada Republike Srbije utoršila novce? Niti je isto, niti je slično. Dodatno, da mi je vidjeti samo jedno barem iole pristojno financijsko izvješće Air Serbia. Toliko o temi.

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    7. Projekat "okolisa" je modifikacija navigacije na Q400?

      Urnebesno! :-)))

      To se zove subvencionisanje isto kao i kod JU.

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