Croatia Airlines eyes €1 million profit in 2018


Croatia Airlines anticipates recording a net profit of one million euros by year's end following an 11.4 million euro loss over the first quarter. The carrier's CEO, Jasmin Bajić, said the result would be achieved despite the ongoing costly short-term wet-lease of additional equipment and the cancellation of 180 flights since the start of the year. "We are trying to reduce the number of cancelled flights by leasing aircraft from other companies but we are also keeping an eye on our costs and staying within our planned budget expense limits for this year. It is correct that the number of cancelled flights has doubled compared to last year, but this is not as dramatic as it seems since we have so far operated over 8.000 flights up until May 15, with just 1% of them cancelled", Mr Bajić said.

There has been growing discontent among Croatia Airlines' staff with a number of them, most notably mechanics, leaving the carrier. This has resulted in additional time required to service aircraft, forcing the airline to wet-lease over a dozen different jets from various airlines over the past few weeks. Additional aircraft will be leased between May 18 and May 24. "It is incorrect to say that our workforce is shrinking, with exception to our mechanics of which 10% leave the company each year, especially since Croatia joined the European Union. All of those who leave are quickly replaced, as is regular practice at other airlines around the world", Mr Bajić noted. The CEO added that the carrier is experiencing some issues, as was the case in the past and will be in the future, but that these problems are similar to those faced by other companies.

Croatia Airlines recorded a net profit of 3.6 million euros in 2017, although the result was achieved on the back of the sale of its five weekly slot pairs at London's Heathrow Airport for eighteen million euros. "Some of our flights this year will be unprofitable. Currently, we have more routes which are unprofitable", the CEO said. The government recently approved for Croatia Airlines to take out an 8.5 million euro loan to finance the overhaul of its aircraft engines this year. The loan, which is being provided by two banks, one of which is state-owned, must be repaid by December 31, 2022. Meanwhile, the carrier has managed to improve its operational results so far in 2018. Up until May 15, Croatia Airlines handled 603.000 passengers, representing an increase of 11% on 2017. During the first fifteen days of this month, the carrier welcomed 98.000 travellers on board its aircraft.

Comments

  1. 180 flights have been cancelled this year?!?!

    ReplyDelete
    Replies
    1. To je u biti i dobra vijest jer nisu odradili letove sa niskim LFom nego većinu putnika preusmjerili na drugi dnevni let ili partnerskog prijevoznika za istu destinaciju

      Delete
    2. Sto znaci da je bilo velikih kasnjenja i gnjavaze za putnike sto svakako nije dobra stvar.

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    3. Znaci, dodjes ujutro na aerodrom i oni otkazu let zbog loseg LF i prebace te na vecernji let, sedis 10 sati na aerodromu i to je DOBRA vest? Ma daj ...

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    4. The backlash they are getting on social media from passengers is unsurprisingly significant. Too many flights cancelled for an airline whose staff are not protesting.

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    5. One of those

      "U zadnje vrijeme kad kupuješ karte za Croatia Airlines, osim standardno prtljage i sjedala, trebaš i odabrati osiguranje od bankrota"

      Delete
    6. S obzirom da sam iz Dubrovnika, moram reći kako let koji iz ZAG za DBV polijeće oko 22 sata uglavnom kasni. Neki dan je poletio oko 1 ujutro jer se čekao let iz Barcelone. Sramota!

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    7. Naravno, sramota sto je u Francuskoj u strajku kontrola leta i sto svi preleti preko Francuske kasne. Mislim, daleko od toga da je Croatia idealna i da sam njome zadovoljan, ali hajmo biti koliko toliko realni i ne optuzivati ih za ono za sta nisu krivi

      Delete
  2. Good passenger growth so far this year. It's interesting how seasonal results are if they can make up for such a big loss over summer.

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    Replies
    1. Passenger growth despite cancelled flights?

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    2. Yes that's quite interesting how did they manage to do that.

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    3. What I also don't get is how they are making those A320neo payments if they need a loan for engine overhauls.

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    4. It’s obvious that the loan is for the aircraft payments. It’s scadulous that they are paying for aircraft they don’t have. Dead money and as I said before, this should be enough to have the entire nangrnnet replaced/fired!

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  3. Anyone know how their new Dublin and Mostar flights are performing?

    ReplyDelete
    Replies
    1. Last rotation OMO flights obout 40 pax. Raising from flight to flight

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  4. If there is no strike...

    ReplyDelete
    Replies
    1. Collective agreement talks should continue next week so we will see how it turns out.

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    2. At least they now have money for a pay rise :)

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  5. "All of those who leave are quickly replaced, as is regular practice at other airlines around the world"

    Sure Mr Bajic. So Why aren't the planes back in service and so many flights are cancelled?

    ReplyDelete
    Replies
    1. Most of the things he has said make no sense.

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  6. Wow, 1 million dollars?!?! Boy I can't wait for A380 fleet that will be bought with that money...

    Pleso Prijevoz that drive crews around have bigger load factor than the aircraft itself

    ReplyDelete
  7. Well at least they don't plan to sell anything this year, which is good.

    ReplyDelete
    Replies
    1. It's still early. There is 6 months to go. Who knows what they will do to show profit.

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  8. I'm lost with OU. Unhappy pilots but 1 million profit.
    Also, when will they finally base an aircraft in DBV?

    ReplyDelete
  9. Unhappy passengers, unhappy staff, happy management o.O

    ReplyDelete
    Replies
    1. And instead of replacing it, government has just extended their term for another 6 months while they organize pointless tenders for new CEO which they never choose.

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    2. It's a never ending cycle. We were all cheering for Kucko to be replaced too.

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  10. After reading everything that Bajic said here, I really can't take the guy seriously.

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  11. I hope that Airbus will start to produce A320NEO version with 4-6 engines so airlines could overhaul or sell them if any crisis arise.

    ReplyDelete
  12. Good to here that they will post a profit. That should be 6 years in a row.

    ReplyDelete
    Replies
    1. When it comes to profits, the truth is often somewhere else.

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  13. Croatia Airlines shoud improve connectivity in ZAG, provide reasonable prices. They should also have two different strategies for summer and winter due to high seasonality of their market and they must take good care of the costs.

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    Replies
    1. What do you suggest be their winter strategy?

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    2. Yes, apart from this very generic statement which is valid for vast majority of airlines (or any other business) in the world, anything more specific and more exact? :)

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    3. They could focus on ACMI wet leases, maybe try and get subsidies and launch flights from other countries during the winter, like Adria did from Poland. Operate more charters, look at possibility of long haul flying (which will eventually be taken care of successfully by foreign airlines)

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  14. Anyone know which plane they are leasing from tomorrow for the next few days?

    ReplyDelete
    Replies
    1. Fokker 100. Scheduled on flights from tomorrow.

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    2. Alen Šćuric Purger17 May 2018 at 11:17

      Tomorow and on Saturday for flights:
      ZAG-OTP-ZAG
      ZAG-VIE-ZAG

      and on Saturday
      ZAG-PRG-ZAG

      But still cancellations even with this short lease

      It will be Helvetic Airways F100 HB-JVH

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    3. No wonder JU carries 20 passengers to OTP from ZAG when they are treating the Romanian market like that.

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  15. Are they still cancelling flights?

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    Replies
    1. Yes. Today's cancelled flights will include Brussels and Sarajevo.

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    2. So just two cancellations?

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    3. From Zagreb. There is also flight cancelled today from Split to Zagreb. Tomorrow more cancellations.

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    4. Lufthansa is loving it. Most passengers are being rerouted via FRA.

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    5. most "cancelled" flights were rescheduled 3 weeks in advance. The timetable system shows them as cancelled. Most of the rescheduled flights have 3 or more daily connections, so the damage to the affected pax was minimal. OU carried +11% more pax in May with 7% cancellation rate in # of flights - does not that tell you that there was a so called "overcapacity" in a total number of offered seats ?
      Enough of sensationalism !

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    6. Petar, come on, the government is destroying OU, no doubt about it! No strategy, the company falling apart, no excuses for cancelling flights! Should that be normal in a country with 15 million tourists where tourist season already started?

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    7. so not true. Most of cancellations were in period 3-6 days.

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    8. “Most of the rescheduled flights have 3 or more daily connections, so the damage to the affected pax was minimal”

      And ppl missed their connections, arrived to the final destination 24h later or even more. A pot of Intercontinental flights are one per day, u miss the wave, u wait till tomorrow. No big deal for some ppl here.

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    9. Completely agree with Slovavio here.

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    10. Alen Šćuric Purger17 May 2018 at 11:15

      - reroute to another company cost money

      - lodging, food, transportation for those who were reroute next day coast money

      - compensation (even if it is not as big number, and it is) cost money

      - short (one day) last minute lease of other company cost huge amount of money

      - thousands of unsatisfied costumers cost much more than just a money!!!!

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    11. Petar, do you mind if I ask you a question?

      Delete
  16. Sta ovi put prodaju???

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  17. 500.000eur is from the subsidies from the Bosnian Federal government for flightd to Mostar, lol. You're welcome CA. :P

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  18. This is hilarious. These statements were made by OU management who held a press conference yesterday to address the state of the airline. Basically the conference was that everything is going amazingly well at the company. They even went to explain how hundreds of cancelled flights are completely normal. Idiots.

    ReplyDelete
    Replies
    1. Time to stop playing around and replace this management, they have wasted enough time.

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  19. Some of our flights this year will be unprofitable. Currently, we have more routes which are unprofitable", the CEO said.

    Great...

    ReplyDelete
    Replies
    1. Unfortunately, according to OU, there is no such thing as a profitable route!

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  20. I am still puzzled with the evident lack of strategy in Croatia Airlines when they see what is going on around them.

    ReplyDelete
  21. According to aviator.aero - AeroCentury (US) to purchase of two Q400s on lease to Croatia Airlines from two special purpose companies managed by GOAL German Operating Aircraft Leasing. - What does this means?

    ReplyDelete
    Replies
    1. Nothing. It means that the aircraft Croatia Airlines is leasing has changed owners and that other company will keep leasing those planes to OU under the same conditions.

      Delete
  22. Alen Šćuric Purger17 May 2018 at 10:29

    Otkazani letovi u pola mjeseca:
    3.5. OU474 Split-Paris
    3.5. OU475 Paris-Split
    3.5. OU657 Split-Zagreb
    4.5. OU660 Zagreb-Dubrovnik
    4.5. OU4436 Zagreb-Munich
    4.5. OU4437 Munich-Zagreb
    5.5. OU460 Zagreb-Zurich
    5.5. OU461 Zurich-Zagreb
    5.5. OU657 Split-Zagreb
    5.5. OU658 Zagreb-Split
    5.5. OU4462 Split-Zurich
    5.5. OU4463 Zurich-Split
    6.5. OU390 Zagreb-Milano
    6.5. OU391 Milano-Zagreb
    6.5. OU460 Zagreb-Zurich
    6.5. OU461 Zurich-Zagreb
    6.5. OU530 Zagreb-St.Petersburg
    6.5. OU531 St.Petersburg-Zagreb
    6.5. OU657 Split-Zagreb
    7.5. OU342 Zagreb-Sarajevo
    7.5. OU462 Split-Zurich
    7.5. OU463 Zurich-Split
    7.5. OU651 Split-Zagreb
    7.5. OU652 Zagreb-Split
    7.5. OU673 Pula-Zagreb
    7.5. OU674 Zagreb-Zadar
    7.5. OU674 Zadar-Pula
    7.5. OU366 Zagreb-Skopje
    8.5. OU341 Sarajevo-Zagreb
    8.5. OU367 Skopje-Zagreb
    8.5. OU442 Zagreb-Vienna
    8.5. OU443 Vienna-Zagreb
    8.5. OU456 Zagreb-Brussels
    8.5. OU457 Brussels-Zagreb
    8.5. OU640 Zagreb-Brač
    8.5. OU641 Brač-Zagreb
    8.5. OU673 Pula-Zagreb
    8.5. OU674 Zagreb-Zadar
    8.5. OU674 Zadar-Pula
    9.5. OU6658 Zagreb-Split
    10.5. OU460 Zagreb-Zurich
    10.5. OU461 Zurich-Zagreb
    10.5. OU474 Split-Paris
    11.5. OU484 Zagreb-Stockholm
    11.5. OU485 Stockholm-Zagreb
    11.5. OU660 Zagreb-Dubrovnik
    12.5. OU320 Zagreb-Prague
    12.5. OU321 Prague-Zagreb
    12.5. OU336 Split-Beograd
    12.5. OU337 Beograd-Split
    12.5. OU632 Zagreb-Zadar
    12.5. OU632 Zadar-Pula
    13.5. OU398 Dubrovnik-Venice
    13.5. OU399 Venice-Dubrovnik
    13.5. OU632 Zagreb-Zadar
    13.5. OU632 Zadar-Pula
    13.5. OU631 Pula-Zadar
    13.5. OU631 Zadar-Zagreb
    14.5. OU4439 Munich-Split
    15.5. OU436 Zagreb-Munich
    15.5. OU437 Munich-Zagreb
    15.5. OU530 Zagreb-St.Petersburg
    15.5. OU531 St.Petersburg-Zagreb
    15.5. OU673 Pula-Zagreb
    15.5. OU674 Zagreb-Zadar
    15.5. OU674 Zadar-Pula
    16.5. OU384 Zagreb-Dubrovnik
    16.5. OU384 Dubrovnik-Rim
    16.5. OU385 Rim-Dubrovnik
    16.5. OU385 Dubrovnik-Zagreb
    16.5. OU464 Zagreb-Zurich
    16.5. OU465 Zurich-Zagreb
    16.5. OU6658 Zagreb-Split
    17.5. OU344 Zagreb-Sarajevo
    17.5. OU345 Sarajevo-Zagreb
    17.5. OU456 Zagreb-Brussels
    17.5. OU457 Brussels-Zagreb
    17.5. OU474 Split-Paris
    17.5. OU654 Zagreb-Split
    17.5. OU657 Split-Zagreb
    18.5. OU336 Split-Beograd
    18.5. OU336 Beograd-Split
    18.5. OU660 Zagreb-Dubrovnik

    Napomene:
    - 83 otkazana leta u samo pola mjeseca (od oko 1.340 letova) - otkazano 6,2% letova
    - u neke dane otkazano je i preko 10% letova tog dana
    - bilo je još otkazanih letova (nije moguće da je otkazan samo npr. MUC-SPU, nego je morao biti otkazan i neki let do MUC), no nemamo sigurnu potvrdu iz više izvora koji konkretno pa isto nismo izlistavali
    - izvori iz same Croatie navode da će u svibnju biti otkazano preko 100 letova

    ReplyDelete
    Replies
    1. Madness. This is serious. How can the government keep this management in place??

      Delete
    2. Alen Šćuric Purger17 May 2018 at 10:34

      U isto vrijeme dok su se otkazivali letovi za Croatiu su letjele strane kompanije i to gotovo svaki dan, neke dane i po dvije kompanije. Kompanije koje su u zadnjih mjesec i pola letjele umjesto Croatie Airlines:
      • Air Explore (Slovačka)
      • Get Jet (Litva)
      • BH Airlines (Bugarska)
      • Jet Time (Danska)
      • NEOS (Italija)
      • Trade Air (Hrvatska)
      • Helvetic Airlines (Švicarska)
      • Peoples' Viennaline (Austrija)
      • Carpatair (Rumunjska)

      Delete
    3. Alen Šćuric Purger17 May 2018 at 10:36

      For management and for Government everything is perfect. Those cancellations and short leases are nothing important and serious, there are enough mechanics and pilots, numbers are perfect...

      Delete
    4. Sad. Any expectations from the upcoming collective agreement meetings?

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    5. Alen Šćuric Purger17 May 2018 at 10:56

      No!

      Management is no serious in negotiations.

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    6. Do you think there is a chance for strike to be avoided?

      Delete
    7. Alen Šćuric Purger17 May 2018 at 11:11

      As far as I can understand I am afraid not. There is small possibility but it is up to Government. This management for sure is not capable to make it right

      Delete
    8. Unfortunate. Thanks for keeping us updated.

      Delete
    9. Hvala, Purger! What do you think if the Government will try to sell OU or not?

      Delete
    10. Alen Šćuric Purger17 May 2018 at 13:46

      They will try, Minister told me that himself. But I told him it is the most stupid time to sell as players who can buy it now have huge investments in this moment and fights on several fronts:

      British (spent more than billion on Aer Lingus, now invest in LEVEL and fight for Norwegian)

      Lufthansa (just bought 55% of Brussels, spent huge amount on Air Berlin, huge expansion on Eurowings and Eurowings Europe, 500 million fight for Alitalia, than target is Condor and SAS)

      Air France (shares in Virgin Atlantic, spent money on Joon, fight with easyJet and Delta for Alitalia, problems with workers)

      easyJet (fight for Alitalia and Norwegian)

      Ryanair (in process of buying Laudamotion, fight for Norwegian)

      Wizz (base in Vienna, fight for Volotea and Alitalia)

      Turkish (invesment in Air Albania, fight for Air Malta, still in restructuration)

      Qatar (investments in American, Cathay Pacific, IAG, LATAM, will invest in Royal Maroc, huge investment in Meridiana/Air Italy)

      Aegean (big A320 order, still investing in Cyprus)

      Travel Service (just bought ČSA)

      ANA, Delta, Singapore, Air China, Azal... invests in their continents, not in Europe, Hainan and Etihad does not invest any more.

      Huge investing companies in another 2 years will invest just in huge global war for positions (for example Indigo Partners in 450 planes).

      If they will try to sell Croatia in another 2 years for sure it will be huge fiasco!

      Delete
    11. How much would someone have to pay for OU?

      Delete
    12. Alen Šćuric Purger17 May 2018 at 14:58

      Last time they ask for 30 million EUR. Today company has new debts, 5 old planes in ownership, 3 or 4 engines, Technics, 4 not so good slots in LHR, 3 hangars and some small real estate. For sure not worth 30 millions.

      Delete
    13. This comment has been removed by the author.

      Delete
    14. +with the neod confirmed, this is a burden for a new potential owner. Obligation to pay for the neos lowers the price, coz it limits the owners business plan (maybe the new
      Owner does not want to have the fleet of new neos etc, because it has a different business model).

      Delete
  23. Bravo Hrvatska!

    ReplyDelete
  24. The flight I was supposed to fly on a few days ago was cancelled. SPU-BEG. They informed me 2 weeks before. They offered me alternative to fly on another day or to give me back my money. I called them the next day to ask them to rebook me on Lufthansa but the lady told me how that is not possible. After I asked what was the point of their cooperation with Lufthansa she told me to wait and a few minutes later told me they rebooked me on LH so I went SPU-FRA-BEG.

    ReplyDelete
    Replies
    1. Alen Šćuric Purger17 May 2018 at 11:12

      And that cost Croatia...

      Delete
    2. thats quiet a routing , would they rebook you with JU or is that a taboo :D

      Delete
    3. Big taboo!

      Delete
  25. Sell the airline ASAP!

    ReplyDelete
    Replies
    1. But is anyone interested?

      Delete
    2. It couldn't be a worse moment to sell. Lufthansa and Air France - KLM are now focusing on Alitalia, IAG wants to buy Norwegian together with Ryanair, Qatar Airways has just launched Air Italy, Emirates has categorically ruled out buying or managing any airline just a few days ago, Etihad won't be making any purchases anytime soon, Hainan Airlines has scaled back international investments. I really don't see who could be interested.

      Delete
    3. 4k invest

      Delete
    4. @ 12.05 Ryanair is involved in talks to buy Norwegian together with IAG. Croatia Airlines is definitely not on their radar.

      Delete
    5. Alen Šćuric Purger17 May 2018 at 13:47

      They will try, Minister told me that himself. But I told him it is the most stupid time to sell as players who can buy it now have huge investments in this moment and fights on several fronts:

      British (spent more than billion on Aer Lingus, now invest in LEVEL and fight for Norwegian)

      Lufthansa (just bought 55% of Brussels, spent huge amount on Air Berlin, huge expansion on Eurowings and Eurowings Europe, 500 million fight for Alitalia, than target is Condor and SAS)

      Air France (shares in Virgin Atlantic, spent money on Joon, fight with easyJet and Delta for Alitalia, problems with workers)

      easyJet (fight for Alitalia and Norwegian)

      Ryanair (in process of buying Laudamotion, fight for Norwegian)

      Wizz (base in Vienna, fight for Volotea and Alitalia)

      Turkish (invesment in Air Albania, fight for Air Malta, still in restructuration)

      Qatar (investments in American, Cathay Pacific, IAG, LATAM, will invest in Royal Maroc, huge investment in Meridiana/Air Italy)

      Aegean (big A320 order, still investing in Cyprus)

      Travel Service (just bought ČSA)

      ANA, Delta, Singapore, Air China, Azal... invests in their continents, not in Europe, Hainan and Etihad does not invest any more.

      Huge investing companies in another 2 years will invest just in huge global war for positions (for example Indigo Partners in 450 planes).

      If they will try to sell Croatia in another 2 years for sure it will be huge fiasco!

      Delete
    6. 4K invest and then join the whole fleet, make it rentable. If JP ever gets Saabs, they could deploy them on various domestic routes in CRO.

      Delete
    7. Merging JP and OU would be great and Adria would be a nice neutral name for a new company.

      Delete
    8. Alen Šćuric Purger17 May 2018 at 14:30

      ZAG and LJU are too near for one company. Two hubs in just 130 km for sure make zero sense. One of those for sure will be closed in that case.

      Only real logic would be if 4K will buy Croatia and Adria for Lufthansa. In that case CRJ900 + Q400 goes to CityLine Adria for routes to MUC and FRA from LJU, ZAG, SPU, DBV, PUY, ZAD and to MUC from OSI, RJK, MBX. In same time Eurowings Europe opens base in LJU, ZAG, SPU, PRN, latter in DBV, SJJ, SKP, TIA. But that means no hub in LJU and ZAG any more.

      Delete
    9. Two hubs, be serious ! Two regional airports sounds more realistic.

      Delete
    10. Koliko se ti ne razumes u avio saobracaj pa to je cudo. Hubovi u LJU i ZAG.

      Delete
    11. Hubovi mogu niti razliciti.....
      Npr tranzitni hub, pa recimo kompanijski hub.....
      Misljenja sam kako je mislio na potonjeg......

      Ukljuciti mozak prije pokretanja tipkovnice.

      Delete
    12. Stop dreaming about "hubs", guys. STOP this obsession.
      ZAG and LJU need to become LCC bases for once in their lifetimes.
      OU should focus on BIG cities and connecting flights or try the hybrid, omnipresent model applied by JP being in Poland, leasing planes to OS, flying from TIA, etc, etc.

      Delete
    13. Huge hub.

      Delete
  26. Alen Šćuric Purger18 May 2018 at 08:51

    Ponedjeljak 21.5.
    Peoples Viennaline, E170 (76 sjedala), OE-LMK umjeto OU

    20.5.
    OU9460 VIE 1800 - 1850 ZAG ferry

    21.5.
    OU460/461 ZAG 0720 - 0845 ZRH 0945 - ZAG 1100
    OU344/345 ZAG 1255 - 1345 SJJ 1415 - ZAG 1505
    OU9345 ZAG 1550 - 1700 ACH ferry

    Svi letovi idu 2 sata ranije, dakle nisu u valovima i konekcije nisu moguće na velikoj većini letova, a i putnici moraju promijeniti svoje planove puta.

    ReplyDelete
    Replies
    1. Horrible. Seems like the situation is going from bad to worse. It's spinning out of control.

      Delete
    2. BatiJe cu im esv ako tako bude 1.6. na FRA-ZAG

      Delete

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