The CEO of Croatia Airlines, Jasmin Bajić, has said the airline requires some 33 million euros in order to launch a new investment cycle and better compete against its rivals. The comments came after the Croatian government kick-started the carrier's privatisation process this week. "The situation is not good because we cannot develop. Currently, we can only stagnate and shrink. Therefore, we need a new investment cycle and capital which is why the ownership structure should change through recapitalisation. This will not be a sale in the traditional sense, rather a recapitalisation for the sake of development", Mr Bajić said. Recapitalisation would entail changes to the airline’s capital. This may occur, for instance, when a creditor exchanges a loan for a stake but does not require changes to the company’s management structure.

Mr Bajić noted that Croatia Airlines will not go bankrupt if it fails to secure a new partner but warned that the carrier would likely downsize its operations. "Competition will become more fierce and we will seek ways in which to survive. We don't want to back down. I guarantee the process will be successful", the CEO said. He added, "The main issue with Croatia Airlines are the losses it accumulates over winter. During the winter season, when Croatia Airlines has no competition and faces only ten carriers who maintain services to the country, we generate losses. When we compete against a hundred airlines in the summer we attempt to make up for those losses. During the summer season we handle almost half of our annual traffic. The key problem is economies of scale because we are leasing more expensive aircraft, buying more expensive fuel and paying for more expensive services than our competiton, who find it more affordable due to the amount they purchase, so the economy of scale gives them an advantage". Mr Bajić noted that he is unaware whether the carrier generated a profit or loss last year as the results are still being accounted.

Earlier this week, the Croatian government set up a multi-member, inter-agency committee whose main task will be to seek out potential investors for Croatia Airlines. “The main task of the committee will be to consider further steps that will secure a quality strategic partner with significant experience in the air transport sector who would, among other things, ensure the expansion of the network and an increase in the airline's market share", the Minister for Sea, Transport and Infrastructure, Oleg Butković, said. Mr Butković noted the government would secure greater funding for Croatia Airlines for Public Service Obligation services through the European Union next year. Currently, the carrier receives 10.3 million euros per year to maintain its domestic network, on which it handled 526.578 passengers in 2018.