Zagreb Airport posts financial loss

NEWS FLASH


Zagreb Airport recorded a net loss of 5.1 million euros in 2017, following a 6.6 million euro profit the previous year. According to the "Slobodna Dalmacija" daily, the airport's revenue more than halved from 174.9 million euros in 2016 to 82.1 million last year. This is despite a record number of passenger and cargo traffic handled during the year. Zagreb Airport declined to comment. The daily states that most of Zagreb Airport's operations have been taken over by Turkey's TAV Airports over the past year, which has a 15% share in the consortium running the airport. TAV bid separately for the thirty-year concession but was disqualified during the bidding process.

Comments

  1. Interesting. Probabbly because of discounts for new connections - Emirates, Korean etc.?

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    1. Discounts for NEW connections??? Logic doesn´s seem to be one of your assets.

      If they provide discounts for new carriers, REVENUES would increase only slightly, as they come on top of the already existing. REVENUES would grow, or stagnate if new arrivals didn´t pay anything.
      BUT REVENUES more than halved!!!, meaning half of those using the airport on a 2016 basis- dont pay ANIYTHING anymore and considering the growth 2/3 didnt pay anything.

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    2. And costs went dow dramatically as well over 90 million with the new terminal ;)

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    3. This tells you about what band of crooks is running this airport.

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    4. @Anonymous19 September 2018 at 11:31

      Bunch of TAV crooks, why do you think they were disqualified from original competition, Croatian government must step in and take over, whole thing stinks to high haven, TAV is siphoning money in to TAV Turkey.

      Whole affair stinks to high haven, USKOK should come in and look at all the books, airport can't loose €100 million in less than a year. Something is a miss. Definitely something rotten in kingdom of Denmark.

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    5. I don't know if it hasn't something to do with TAV or not but something to keep in mind is that TAV looses its biggest airport at the end of October. Ataturk is shutting down and they are not operating the new IST airport. That will make a big dent in their finances.

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    6. @Anonymous19 September 2018 at 16:25

      If that's the case, you got motive for their actions, I wonder if they' operate other airports in a similar fashion. TAV is dogy to say the least. Cro Gov needs to get involved and ban TAV from Croatia forever, same way they banned Bechtel ever doing any work in Croatia.

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    7. But then the French are crooks too. Not only do they have a share in TAV, they are allowing for money to be taken from ZAG. It's not as if they are clueless where the money is going.

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    8. @Anonymous19 September 2018 at 16:44

      Indeed, no question there's something dogy here, we'll need to wait for Government to act, we need clarification where over €100 million has gone.

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  2. Zagreb management is arrogant and bad. management believes they can rest on their laurels just because they've brought in big network carriers. Instead of using the old terminal, which was Modernized a few years ago, for lcc to lower prices, is empty. I would like to see Emirates go completely, because only then do they realize that something is wrong with their management

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  3. I guess you could find some sort of explanation for profits declining but what on earth can be the explanation for revenue going down so much, especially if you handled a record number of passengers.

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    1. So strange, meaning COSTS have gone down tremendously over 80million less costs!!

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  4. Someone wrote something the other day about money being siphoned out by TAV.... could be something in this claim.

    Even if they did subsidies Emirates and Korean I doubt that would explain the near 100 million difference in revenue.

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    1. I think only profits would be affected by TAV. Revenue is linked to the funds the airport received based on the invoices they issued.

      Basically invoices issued had lower value than the ones last year. There is something extremely strange going on here.

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    2. But at the same time costs; airport taxes, car parking charges, pax numbers all increased....

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    3. That's why I said there is something really strange going on here. The only explanation I can think of is that a large part of the airport's operations were moved to sister companies which are probably getting all this revenue.

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    4. Weren't KE and EK received financial motivation to fly to ZAG from "udruzeno oglasavanje"? It looks like foreign airlines received money from more than one financial source.
      Interesting

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    5. There is an incentive scheme in place at ZAG. Airlines get discounts for things depending on frequencies etc. There was an article about it here. For example airlines get discounts to fly year round to ZAG but only during first year of operations.

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    6. That what you mentioned are discounts.

      "Udruzeno oglasavanje" is a fund that will be doubled next year according to Croatian minister and it means live cash given to the companies to fly to Croatia

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    7. Incentives and subsidies don’t explain lack of revenues, unless they were retroactively applied to all existing airlines that flew to ZAG before takeover.

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    8. @Nemjee19 September 2018 at 12:31

      Yes, in other words siphoning money in to Turkish TAV, this can only explain such a massive fall in reported revenue, and profits. Most likely actual turnover was around €180-190 million but most of it registered under different firm based who knows where. Very dodgy dealings, Croatian government must step in and take over operations, or make certain TAV is excluded from operations @Zagreb Airport, Croatia. The company is clearly involved in dodgy dealings, and is part of Erdogan regime.

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    9. I don't think the Croatian government can do anything. Why should they? They are probably bribed as well.

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  5. what are the numbers for other Airports in ex-yu?

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    1. Most were published here

      BEG - plus 27 million euros
      LJU - plus 3.1 million
      MXB - minus 1.7

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    2. Auch!
      From 6,6 million profit in 2016 to 5,1 million loss in 2017.

      It means negative difference of 11,7 million EUR in only 12 months or in average almost 1 million per month at the time when ZAG proudly presented that so many new companies started flying there.

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  6. Mirise na kreativno knjigovodstvo u cilju izbjegavanja koncesione naknade......

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    1. Otežavajuće okolnosti, zbog kojih bi koncesionar bio oslobođen plaćanja fiksnog dijela naknade, ne odnose se na rezultate poslovanja, izričit je bivši ministar Siniša Hajdaš Dončić, koji stoji iza ugovora o koncesiji i brojnih aneksa koji ga slijede.
      – Otežavajuća okolnost odnosi se isključivo na stečaj Croatia Airlinesa, u kojem slučaju koncesionaru može biti odobrena odgoda plaćanja koncesijske naknade do tri godine, ali samo dok je CA u državnom vlasništvu. Na iznos naknade za koju je odobrena odgoda naplaćuje se kamata – pojašnjava Dončić.

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    2. Taj Donky nije nesto vjerodostojan lik nikad bio

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    3. Postoji mogucnost da su osnovali sestrinske firme zagrebackog aerodroma koje su preuzele deo poslovanja a da pritom minimalno placaju samom MZLZ. Samo se tako moze logicki opisati takav pad prometa a da pritom sam aerodrom belezi rast punika i robe.

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  7. After years of sneering at everyone who said that Zagreb should attract low-cost carriers for the benefit of both the local population and Croatian tourism, what excuse is there now for keeping easyJet, WizzAir, Ryanair and others away? Even Norweigan and Eurowings say the fees are too high for them to expand beyond what they currently operate.

    The ridiculous claim that Zagreb is a prestigious destination that should attract legacy carriers, and focus on being profitable rather than booming in passenger numbers is absolutely infuriating.

    We need LCCs at Zagreb! WHEN will the management realise this? They can't attract the passenger numbers and they can't make profit either with this DREADFUL current strategy.

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    1. Well, we've been repeating this LCC issue for so long. I think the Frenchies have a secret deal with OU and AF and protecting them from not being threatened by W6 or FR because they know that both airlines will not be able to face the challenge. There is no other explanation.

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  8. How is this even possible?? Both passengers and cargo numbers had a record growth, while at the same time the revenue went down by almost 100 million euro and the profits went down by almost 12 million euro. All within a single year. And no comment?? There's something seriously wrong here. Is there any explanation for this other than a major crime having been committed?

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    1. It obviously falls together with the opening of the new terminal (airport) which is a new entity where not all revenues are recorded. The revenues from the operations must have gone up, but are now not with the operating company of the new terminal but in another sister company, which is then obviously doing well.

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    2. Well, actually it looks almost impossible. The only logical explanation is that the costs went up drastically. Which costs - ZAG has no comment.

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    3. Rising costs wouldn't explain falling revenue but falling profits.

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  9. The new financial expert from should back this company profitable again

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  10. Lots of misinterpretations here, you should have read the entire article to avoid confusion.

    According to Slobodna Dalmacija, MZLZ (Zagreb Airport) and TAV Airports' parent Akfen Holding have signed several aerodrome management contracts, including those of duty-free services, catering services, handling services, information systems, security and management services, through its subsidiaries ATU Tourism Izletmeciligi, Havas Havaalanlari Yer Hizmetleri, BTA Havalimanlari Yiyecek ve Içecek Hizmetleri, TAV Excursions Hizmetleri , TAV Bilişim Hizmetleri, TAV, and TAV Akademi eğıtım ve danışmanlık hızmetlerı. That's how the money evaporated from Zagreb Airport.

    After that the ADP (Airport de Paris), which now holds a 46% stake of TAV, has partly withdrawn from the operative of Zagreb Airport apparently leaving the the management of Zagreb Airport to TAV. On TAV Airports' website you may find that TAV Airports manages a portfolio of sixteen airports in six countries, including Istanbul Ataturk, Ankara Esenboga and Izmir Adnan Menderes in Turkey, as well as airports in Tunisia, Georgia, Macedonia AND CROATIA.

    And it would not be surprising if TAV was not disqualified from the tender for the Zagreb Airport concession at the very beginning of the process. The reason for the disqualification was the fear of traffic "cannibalizing", since the Turkish company was already operating airports in Skopje and Ohrid, which are within 400 miles of the Zagreb airport.

    The newspaper speculates that Zagreb Airport transfer from ADP to TAV is a compesation for ADP's interest in new Istanbul Airport.

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  11. Another Croatian success story

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  12. Hahaha, rekordan porast putnika, a objavili gubitke. Zele isisati lovu od drzave. Grozan handling (prtljagu cekas 40-50min), nikakva usluga (prakticki nema self, check ina), najskuplja taksa (u regiji). Najskuplji parking. Najskuplji taxi. Najlosji catering. Jedina zracna luka u kojoj QR ne uzima catering (od svih svojih destinacija) je Zagreb. Sve zajedno OCAJ!

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    1. Da li je to zaista moguce?
      Bio sam u ZAG dok je jos bio stari terminal i mislio sam da ce sa novim mnogo toga da se popravi ali po ovome sto pises izgleda da situacija uopste nije sjajna

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  13. The decline in revenue was actually driven by the fact that according to International Accounting Standards, MZLZ recognized both revenues and expenses related to construction of the new passenger terminal in 2016 and (only a small portion) in 2017.

    Those revenues amounted to 768 million HRK in 2016 and only 32 million HRK in 2017.

    Without this impact, actual sales revenue in 2016 was 379 million HRK, and in 2017 it was 408 million HRK, an increase of 8%.

    At the same time, expenses related to construction of the new terminal also amounted to 768 million HRK in 2016 and only 32 million HRK in 2017, so this explains the strong decline in expenses.

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