Croatia Airlines outlines development plans


Croatia Airlines has presented its short-term plans regarding its fleet and network development. As previously reported, the carrier will lease three aircraft this summer season, two of which will remain with the airline on a long-term basis. An Airbus A319 has been leased for a period of eight years, while a Dash 8 Q400 will have a low utilisation rate and will be primarily used as a spare, so as to limit network disruption, by supplementing any aircraft which may go out of service due to technical reasons. Both aircraft will be delivered by late April. The A319 will have the capacity to seat 150 passengers, which is slightly more than the rest of Croatia Airlines’ A319 fleet. The third aircraft, a Bombardier CRJ1000, will be wetleased only during the summer months from Spain’s Air Nostrum.

Croatia Airlines will introduce three weekly seasonal flights from Zagreb to Sofia and Podgorica this summer. “We are expanding our network of destinations to a total of forty cities in 26 counties. That is a respectable number for a small nation such as Croatia”, the carrier’s CEO, Jasmin Bajić, said at a company presentation yesterday. Mr Bajić noted that in addition to point to point travellers, the new routes should help improve loads on services to Western Europe by generating transfer traffic. Flights to the Montenegrin capital were last operated by the airline in February 2013, while services to Sofia will run for the first time.

The Croatian carrier noted that its passenger numbers have improved 1% so far this year, however, it warned of softer demand as a result of the spread of the Coronavirus across the world. “It [virus] has had less of an impact on Croatia Airlines than other European carriers which are dealing with this major issue. Based on our advanced bookings for March, we do see a slump In demand compared to previous years. However, we are still not considerably affected”. The airline noted it had no news concerning its ongoing privatisation process, saying only that any developments will be announced by the government in June at the earliest. The state previously set a June deadline to offload the majority of its shares in the carrier to a private investor. So far, both Aegean Airlines and Air Nostrum have shown interest in acquiring a stake.




Comments

  1. Anonymous09:02

    Weren't people saying there was an issue with the times for people to connect to from TGD and SOF?

    ReplyDelete
    Replies
    1. Anonymous09:05

      I believe some connections can be made.

      Delete
    2. Anonymous09:08

      Only destinations that have at least two daily flights will work so VIE, BRU, FRA and MUC. Doubt that's enough though.

      Delete
    3. Anonymous09:14

      SOF and OTP have identical schedules. They are mainly targeted to the coast. Connections are excellent in both ways. Prices are quite decent, too.

      Delete
    4. Anonymous09:16

      But I don't understand why CEO mentions western Europe transfers.

      Delete
    5. Anonymous09:16

      Maybe he doesn't know which destinations SOF connects to?

      Delete
    6. Don't really think OU is targeting transfers to Western Europe, similar to what JP was doing in SOF. If you check their official website, you'll see they are clearly promoting the Croatian coast:

      https://www.croatiaairlines.com/Offers/Flight-offers/Flights-from-Sofia/

      I saw on the TV the other day, that Croatia, Vietnam and Egypt are becoming more popular destinations for Bulgarians + I still think there might be a small O&D traffic between ZAG & SOF.

      Delete
    7. Anonymous09:31

      We will have to see what happens, flights to the coast are not cheap in summer. So flights might be affordable now BUT not for long. Those €160 fares from SOF will soon become €400

      Delete
    8. Anonymous10:50

      The route will be a desaster without transfers. What were the route planners thinking?

      Delete
    9. Anonymous10:54

      Anon 10.50

      What could they do? Their European network is weak so it's difficult to work around that.

      Delete
    10. Anonymous11:10

      They should have copied Adria's approach which was successful. Why experimenting on the brink of bankruptcy??

      Delete
    11. Anonymous11:14

      Yes, Adria's approach was very successful. That's why they are bankrupt now.

      Delete
  2. Anonymous09:03

    A Q400 as spare?? What if an Airbus goes tech?

    ReplyDelete
    Replies
    1. Anonymous09:09

      They will have to rebook them on other flights. The only thing is what happens if an Airbus goes tech on the coast? How will they rebook those passengers? My guess is that only implies for their ZAG operations.

      Delete
  3. Anonymous09:04

    The only hope is for them to be privatised in June and for them to start fresh in winter 2020/21.

    ReplyDelete
  4. Anonymous09:07

    Nice

    ReplyDelete
  5. Anonymous09:07

    So much expectation from OU this summer and in the end nothing.

    ReplyDelete
    Replies
    1. Anonymous09:09

      Because people hoped OU would follow JU but in the end they followed RO and we all know how that ended.

      Delete
    2. Anonymous09:55

      I don't understand why anyone had such expectation from Croatia Airlines for the summer. They said last year that their growth until privatisation would be modest.
      https://www.exyuaviation.com/2019/07/croatia-airlines-plans-modest-growth.html

      Delete
  6. Anonymous09:07

    Too little too late. I fear their TGD flights will be a disaster especially since they barely connect to anything on the way back. Vienna is served like double daily with YM-OS while BEG has five or six daily flights and YM has its code on JU's flights.

    So who will OU carry? Passengers to Vienna, Frankfurt and Munich? That's not nearly enough to keep this route going. It's also questionable how big the market is from Sofia to the Croatian coast. Bucharest is a different story since there was actual O&D demand to Zagreb.

    The ugly truth is that OU is about to board the same bus as JP. They are not growing nearly enough as they should be. They can not achieve volume like this which they need to get them going. They sold their assets, lost the coast and don't seem to know how to get out of the rut they are in.

    It also doesn't help that ZAG isn't experiencing such large demand in general to help them grow until transfers come.

    I give OU about two years before the real struggle begins.

    ReplyDelete
    Replies
    1. Anonymous09:09

      OU's finances are quite fine. Yes they have a loss but it is not major and there is no creative accounting to mask that loss.

      Delete
    2. Anonymous09:12

      Yet that loss was big enough for them to keep on selling their assets. What happens when you sell all your family silver? Then come unfavorable loans that are guaranteed by the government and that will be paid by the taxpayers down the road.

      OU is run by idiots. First thing they should have done was to downgrade CDG to Q400 and to increase it to 14 weekly. Like that they would optimize connectivity in ZAG. But no, they keep things as is without any clue how and what to do.

      Delete
    3. Anonymous09:14

      I'm not saying its well run, but I don't think it is in such bad state either. The last asset that was sold were part of the Heathrow slots several years ago.

      Delete
    4. Anonymous09:17

      And losses actually increased last year, their finances are getting worse. So how can they have a bright future ahead of them if they can't be financially self-sustaining. The government can't inject cash into them.

      Delete
    5. Anonymous09:21

      And in meanwhile they got 33.7 mil EUR.
      No need to sell anything, the money comes directly and illegaly from Croatian tax payers

      Delete
    6. Anonymous09:21

      Agree that TGD will be a disaster

      Delete
    7. Anonymous09:23

      @9.21. It's not illegal. The money will be paid back and the EU commission had no problem with it. Like they had no problem with the state aid the Romanian government just gave TAROM.

      Delete
    8. Anonymous09:33

      How will OU pay this money back? It is huge money for them and we all know they won't be able to pay it back.

      We shall see about EC. I haven't read anywhere that EC agreed with it. The last piece of information was that they carefully observe the situation.

      They had quite a big problem with Malev, Cyprus Airways and Estonian Air. And we all know how these stories finished.

      Delete
    9. Anonymous09:35

      The only difference is that RO didn't get state aid in the past ten years, OU did. Romanians are smarter. That is why the Croatian government rushed to convert this aid to a loan only to save OU from imminent bankruptcy.

      I have a serious question now, how will OU survive winter 2020/2021

      Delete
    10. Anonymous09:39

      They will be privatized.

      Delete
    11. Anonymous09:54

      How do you know it?

      Delete
    12. Anonymous09:56

      And how do you know it will go bankrupt? You don't.

      Delete
    13. Anonymous09:57

      I do not claim it will happen. You do.

      Delete
    14. Sorry but OU will never be privatised with a fresh 34 mil EUR in liabilities.

      Delete
    15. Anonymous10:36

      Exactly, they got this cash injection (loan) and that will not look good on their books. Do you really think Aegean will be willing to repay it especially return on investment in OU will take a long time to achieve.

      As for their bankruptcy, how can you claim they won't? Look at the writing on the wall. Worsening finances, loss of coastal business, nonsensical network and schedule, leasing a Q400 in summer just so it can sit on the tarmac in case one plane goes out of service...

      Delete
  7. Anonymous09:07

    "...it had no news concerning its ongoing privatisation process..."
    They should be ashamed, not just for this, but opening of only two new routes and lack of vision. Virus is slowly coming and there are already many cancellations in Dubrovnik, where I live! And not a single word about PSO?

    ReplyDelete
    Replies
    1. Anonymous09:11

      PSO is not up to Croatia Airlines but the government.

      Delete
    2. Anonymous09:12

      And Croatia airlines is own by the government!

      Delete
    3. Anonymous09:13

      Yes but it is not up to Croatia Airlines to announce the tender for PSO or explain why no PSO tender has started.

      Delete
    4. Anonymous09:20

      The lack of PSO tender is really concerning.

      Delete
    5. Anonymous09:20

      Sorry, Anon 09:13, but I can't agree, they are state owned, they should have at least mentioned it since they are the ones operating domestic flights and PSO turned out to be a huge problem!

      Delete
    6. Anonymous09:32

      Can OU fly without PSO? And why do they need PSO for summer flights ZAG-DBV or ZAG-SPU? These flight are very good sold during summer months. Also I don't understand why they need PSO for winter flights ZAG-DBV?

      Delete
    7. Because that's how they plug the hole in the airline's finances. PSO is mostly a legal way to give subsidies when it comes to OU.

      Delete
    8. Anonymous12:26

      Yes, I agree.

      It looks very much so.

      Delete
  8. Does anybody know the passenger number Croatia airlines carried in 2019? Thanks a lot!

    ReplyDelete
    Replies
    1. Anonymous09:10

      It has still not been published. They publish their results for the previous year at the end of February. So in a few days.

      Delete
  9. Anonymous09:11

    1% pax increase is actually extremely bad result as many Slovenians are flying from ZAG since Adria is gone.

    ReplyDelete
    Replies
    1. Anonymous09:13

      ZAG grew, OU stagnated. It means Slovenes are flying on foreign airlines, another smashing success for OU.

      Delete
    2. Anonymous14:14

      I remember a few months ago we were reading comments how Zagreb will never grow again, that it will stagnate for months to come and here we are. Same will be for Croatia Airlines.

      Delete
  10. Anonymous09:18

    Iznajmiti avion kao rezervni a grcati u dugovima je cista ludost. Imam utisak da CRO i dalje luta.

    ReplyDelete
    Replies
    1. Anonymous09:21

      They should have at least put a few frequencies on it. They could use it to launch night flights to TIA a few times per week.

      Delete
    2. Anonymous14:15

      What would they have achieved with night flights to Tirana?

      Delete
  11. Anonymous09:20

    Despite all the people's comments about OU, I still think it's has a very good network and good fleet.
    Things will definitely change once the A32N's arrive.
    They will most probably stick to leasing for 2 more years that will allow them to focus on a newer strategy.
    By then, BWK airport will also be more developed and will allow them to offer even more connections from ZAG to the coast.

    ReplyDelete
    Replies
    1. Anonymous09:23

      How will they pay A320NEO's?
      They do not have even money for everyday's business operation.

      Delete
    2. Anonymous09:25

      Sorry, but nothing will change with this incapable government and Croatia airlines' current management!

      Delete
    3. Anonymous09:27

      Everyday business is operating normally. So they obviously do have money for everyday business operation.

      Delete
    4. Anonymous09:34

      Without 33.7 mil EUR it would not have been the case.

      They would be already in Adria's boat.

      Delete
    5. Anonymous09:36

      If they were making money for every day operations they would be breaking even, they are not, they are amassing losses left and right?

      Delete
    6. Anonymous14:13

      Their losses are quite small in aviation terms.

      Delete
    7. Anonymous14:24

      Sure, it would be small loss for FR, LH, AF etc. but not for OU.

      For OU it is massive loss

      Delete
  12. Anonymous09:25

    Bravo Hrvaska!

    ReplyDelete
  13. Anonymous09:40

    I remember some months ago we were convinced in the comments that OU would be experiencing a massive expansion this summer and how things will change. In the end they are not even adding extra daily departures from ZAG, one destination connects to the coast with minimal potential while the other connect to western Europe only in one direction.

    Aegean has also gone quiet so it seems they gave up on OU as well. This seems to be the end.

    ReplyDelete
    Replies
    1. Anonymous09:42

      Give it a rest man. How many comments have you written today about Croatia Airlines going bankrupt?

      Aegean Airlines said in January (last month) they would study OU and engage in talks. What do you expect? Daily updates?

      Delete
    2. Anonymous09:45

      I can only imagine the reaction of some here if they do buy OU. It will be pandemonium. Would not fit in their narrative of bankruptcy and collapse some are so eagerly hoping for.

      Delete
    3. Anonymous10:37

      You mean like all those airlines buying OU over the years, from Garuda to Aegean and Nostrum? Sorry but it's been months since Aegean looked at OU's books and since then they have announced a major expansion in SKG, for those who are smart that's enough.

      Delete
    4. Anonymous10:41

      If you were smart, you would know that they announced expansion from Thessaloniki before they announced they were looking at Croatia Airlines. Also, since you said it has been MONTHS, could you care to explain how they announced their interest for Croatia Airlines to the Athens stock exchange in JANUARY 2020? Today it is FEBRUARY 2020. While I understand them buying Croatia Airlines would ruin your dreams, why do you have to twist and write false information?

      Delete
    5. Anonymous10:56

      What dreams? What are you going on about? You are the one who is dreaming of A3 having any real interest in OU. The more time passes the worse the situation at OU becomes. You seem to ignore how bad the situation at the airline is. But hey, if Aegean said they are going to buy OU then who are we to judge, after all, it's not like any other airline expressed interest in the past ;)

      Delete
    6. Just a hypothetical question, IF Aegean airlines finally buy Croatia airlines, can they cancel the 4 a320neo and lease back to Croatia some of their own? After all by 2024 they are gonna have 46 or 58 a320/321 neo.

      Delete
    7. Anonymous11:56

      I doubt it because Croatia Airlines has already started making payments for those neos. They will loose the money if they cancel the order.

      Delete
    8. Anonymous12:10

      truth be told, what we've seen from OU, Q400 seems like a more appropriate plane for them in ZAG than A319/320. Sure they can fill it in summer but loads in winter are so bad they burn all their profits.

      Delete
    9. Anonymous14:12

      I can bet you most airlines in the region burn their profit in winter.

      Delete
  14. Anonymous09:46

    Can't believe some people are so triggered by the launch of two seasonal routes.

    ReplyDelete
    Replies
    1. Anonymous14:11

      Same. Like some kind of an explosion in some people's heads.

      Delete
  15. Anonymous09:50

    Good luck OU.

    ReplyDelete
  16. Anonymous10:05

    If they are keeping 150 seat capacity on the A319, does that mean they are not refurbishing it with OU seats?

    ReplyDelete
    Replies
    1. Anonymous10:11

      Seats are exactly the same as in OU just different colour.

      Delete
    2. Anonymous10:12

      Yes but the pitch isn't. easyjet has a pitch of 29' while Croatia Airlines has 32'. That's why easy has an additional row of seats. But Croatia Airlines will keep this pitch on this plane. So it would be good to avoid this plane in the future.

      Delete
    3. Anonymous10:14

      Also easyjet seats don't recline.

      Delete
    4. Anonymous10:18

      That's a good thing actually.

      Delete
    5. Anonymous10:20

      With that pitch, if they reclined the passenger in front would be in your lap.

      Delete
    6. Anonymous10:23

      https://c8.alamy.com/comp/PG5TBY/in-flight-legroom-seat-pitch-backseat-view-PG5TBY.jpg

      Delete
    7. Anonymous14:11

      Ouch

      Delete
  17. Anonymous10:20

    From who are they leasing the Dash?

    ReplyDelete
    Replies
    1. Anonymous10:23

      Aircraft leasing company.

      Delete
    2. Anonymous10:34

      I meant who used to operate it before?

      Delete
    3. Anonymous10:42

      Austrian Airlines.

      Delete
    4. Anonymous10:45

      The plane in question is OE-LGJ. It has flown only for Austrian.

      Delete
    5. Anonymous14:03

      Thanks

      Delete
  18. Anonymous10:26

    SOF without transfers will NOT work!

    They will burn a huge opportunity - on the one hand because they will see low demand and will not return thereby losing potential traffic from there, on the other hand because of opportunity cost for the aircraft, not sending it somewhere else.


    It is really a pity they mismanaged it that much :(

    ReplyDelete
    Replies
    1. Anonymous10:34

      Aren't there transfer options to the coast?

      Delete
    2. Anonymous10:51

      not sure transporting tourist via ZAG yields enough to justify the line.
      They need transfers to business hubs in Western and Northern Europe, those passangers are much more lucrative and ZAG airport is a pretty nice place to connect at.

      Delete
    3. Anonymous12:29

      If SOF won't work what can we say about TGD?
      That will be epic disaster.

      Delete
    4. Anonymous14:03

      It's interesting how anoanymous experts on here know what will work and what won't work. I wonder what they base their expert opinions on.

      Delete
    5. Anonymous14:25

      On the little O&D demand between HR and BG, now with the first corona cases even less.

      Delete
    6. Anonymous14:26

      Over 50,000 people traveled between Bulgaria and Croatia last year. Certainly not little O&D demand.

      Delete
    7. Anonymous20:32

      Aha and most of those went by bus to the coast, probably to places like Split or Dubrovnik, highly doubt they will want to pay €250 for a plane ticket when thta's how much the whole package tour cost them.

      Delete
    8. I am pretty sure OU did some research before considering those 2 destinations. TGD is currently growing very nicely and receiving more destinations every year.
      In 2010, "Hemus Air" had plans to launch SOF-ZAG but never happened.
      The interesting part is that JU immediately reacted to OU and drastically reduced the prices on the SOF-ZAG route.

      Delete
  19. Anonymous11:10

    Croatia Airlines is folowing solutions that Adria Airways introduced year or two before bankruptcy.

    ReplyDelete
    Replies
    1. Anonymous11:34

      What solutions?

      Delete
  20. Anonymous11:35

    You can't please some people here. If they didn't introduce any new routes or aircraft you would all be screaming how they are stagnating, losing market share etc. When they grow and expand then its them following Adria scenario bla bla.

    ReplyDelete
    Replies
    1. Anonymous11:44

      +1

      Delete
    2. Anonymous12:11

      Because it's not just about expanding, it's also about doing it right something they failed to do.

      Delete
  21. Anonymous11:46

    I am pretty confident that SOF will be a success.

    ReplyDelete
  22. Anonymous13:03

    Corona virus is spreading, stock markets are going down, tourism and global economy are slowing yet they are adding three more aircraft?

    ReplyDelete
    Replies
    1. Anonymous13:19

      WOW. And only OU will be affected? And fleet expansion was negotiated a day ago? It is not a rent a car or taxi. And if Croatian tourism will be affected than great loses are going to Ryanair, Easjet flying to the coastel region...

      Delete
  23. Anonymous19:29

    Svakako je odlicno sto prosirijuju flotu , svakako leti nikad nije dosta kapaciteta a sto bi im drugi uzimali putnike dzaba.
    INN-NS

    ReplyDelete
  24. Anonymous19:33

    is there a site where i can checl OU load factors on their routes?

    i am trying to find out how they are performing on the Zagreb - Oslo route, i am wondering if they are planning on canceling it, anyone knows?

    ReplyDelete
  25. Anonymous21:37

    With the coronavirus spreading i guess all plans for 2020 are becoming obsolete .
    Governments should better prepare for downsizing operations and even avoiding bancruptcies .

    ReplyDelete
  26. Anonymous22:24

    I don't know who is more pathetic, OU for being generally useless or ZAG for tolerating them. Look at how bad ZAG is, looking at FR24 departures next week:

    ZAG - 319

    LJU - 127
    BEG- 493
    TIA - 223
    SOF - 511
    SKG - 362
    BUD - 1.084

    ZAG needs to up its game, big time. A new approach is needed, not these minimal things.

    ReplyDelete
    Replies
    1. Anonymous23:12

      There is a simple fact. The southern part of Austria, Slo+ northern Cro + west Hungary have way too many airports in correlation with the population.
      Within a parameter of 300km you have Zagrab, Ljubljana, Trieste, Klagenfurt, Graz, Pula and Rijeka and even Pécs in Hungary has an airport but with no traffic.
      7+1 airports for, lets say a population of roughly 3-4 million is just a lot i.e. every 500,000 people get an airport for themselves.

      Delete
    2. Anonymous07:10

      ...which is why ZAG needs to be proactive. Why did they allow for easyJet to expand as much in LJU? They should have reached out to them and gave them a deal they couldn't say no to. But no, it's easier for them to sit there and collect their funds from OU which is ripping people off to fly with them, and most don't even have a choice.

      Delete
    3. Anonymous09:03

      And all these airports are way smaller than ZAG. Actually they are minor.

      I do not see the reason of mentioning Pecs as it has no influence on ZAG.

      Honesty saying these argumnets do not stand at all

      Delete

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