Croatia Airlines negotiates with providers as state mulls aid


Croatia Airlines is in talks with a number of its most important providers in order to reduce costs and losses during the coronavirus Covid-19 outbreak. Speaking at the Aviation Arena webinar on the effects of the pandemic on the Croatian aviation industry, the carrier’s Director for Network and Revenue Management, Krešimir Mlinar, said, “We have been in talks with all of our major providers, including aircraft owners. We have managed to negotiate better and more flexible terms and conditions, which will enable us to safeguard our liquidity and secure normal operations - as normal as they can be in these circumstances. As a result, expenditure has been put under control in these segments”.

The Croatian carrier has also been in talks with employees and trade unions in order to navigate the ongoing crisis. “In line with government policy, we have also launched a dialogue with our social partners. We have done a number of activities in order to keep our income within the company, as much as possible. As a result, we have managed to buy some time, until this entire situation passes”, Mr Mlinar noted. The Croatian carrier previously said its bookings declined 95% in April compared to last year, while it was forced to cancel 3.200 flights in March and April. The airline will resume flights from Zagreb to Split and Dubrovnik on May 11, while maintaining its single daily service from the Croatian capital to Frankfurt.

Earlier this week, the Croatian government said it plans to assist its national carrier in overcoming the financial fallout of the ongoing Covid-19 pandemic. Speaking at the webinar, Dinko Staničić, the Director of the Civil Aviation Sector at the Ministry for Sea, Transport and Infrastructure, said, “It [assistance] depends on what we can negotiate with the European Commission and the Ministry for Finance. What we can do at this point is cover the airline’s losses. However, there have to be some limits to this because we do not have boundless means, and neither would that be approved. For now, we are negotiating with the Commission to see how we can help the airline, as well as other subjects in the industry that are privately owned”.

Comments

  1. Anonymous09:03

    Smart

    ReplyDelete
    Replies
    1. Whats actually smart there in CTN? What about internal reorganisation that should have been executed long time ago? What about 20% extra staff they dont need? By this kind of behavior and sucking the State budget every year nothing will be changed there is no any logical vision.

      Delete
    2. Such a poor company and it's time they moved over and let proper airlines who know business run a good service for the people.

      Don't fly direct to Rome.. have to get off at split check in and get in the same plane to go .....how stupid is that ....

      Don't fly anywhere people want to go, kills Zagreb tourism as they are too expensive can have a week I Greece for same price as a single flight on Croatia air.

      Thanks Croatia air for ruining the tourist trade in Zagreb whichnis the jewel of Croatia .

      Let the cheap airlines in and people will come hotels and restaurants and shops will be used and earn tax euros...not difficult is it

      Delete
  2. Anonymous09:25

    Bravo Hrvatska!

    ReplyDelete
  3. Anonymous09:41

    I really hope the government will help. This is an unprecedented situation.

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    Replies
    1. Anonymous09:43

      And also, why do they need to talk to the EU commission. Belgium, Germany, France have already approved massive (multi billion euro) aid for their airlines.

      Delete
    2. Anonymous10:23

      Because eu is bullshit not everyone is treated the same why should we talk to the eu commission when france just approved 7 billion to air france!!!

      Delete
    3. Anonymous10:24

      Yes but it's important to note that it's a loan. So it will be repaid at some point

      Delete
    4. Anonymous10:49

      It's a loan and its for the entire Air France-KLM group.

      Delete
    5. Anonymous11:40

      A loan that can be paid off without a time limit.. and without a certain amount each time.

      Delete
    6. Get rid of croatia air useless company over priced and over rated get in companies who can run a company better ...cheaper to fly to USA from London than Zagreb London

      Cold beer for me when when it is when they go bust

      Delete
  4. Anonymous10:25

    A smart Yugo carrier. Didn't see that expected. Wishing OUT all the very best.

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    Replies
    1. Anonymous10:38

      ?

      Delete
    2. Anonymous12:24

      There's some really bizarre comments here today. I think your faux pas with OU and OUT is quite poignant. As it looks, they truly are on their way OUT.

      Delete
  5. Anonymous10:38

    The most worrying thing OU must be those A320neo orders. Can they do anything about deferring or cancelling them?

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    Replies
    1. Anonymous10:40

      If I remember correctly one of the main reasons that a strategic partner was needed was because of the fleet and probably paying for this order.

      Delete
    2. Anonymous11:01

      That order is turning into a big burden.

      Delete
    3. Anonymous11:01

      At the same time the fleet needs to be renewed. The Airbus fleet is ageing.

      Delete
    4. Anonymous12:04

      Soon there will be a lot of cheap aircraft on the market. No need for brand new A320neo.

      Delete
  6. Anonymous10:48

    It's good at least that they are organised and thinking about costs.

    ReplyDelete
  7. Anonymous10:49

    What would be more loss making. To keep planes on the ground or to fly one daily flight? (honest question)

    ReplyDelete
    Replies
    1. Anonymous12:05

      Look at what generally profitable airlines are doing at these times?

      They've grounded their fleets. There's the answer.

      Delete
    2. Keep some planes flying so you don't have to pay a refund but offer a credit only. You get to keep the cash at least.

      Delete
    3. Anonymous15:03

      Passengers not getting a refund when paying hundreds of EUR for a ticket. That will go well for their brand, yep.

      Delete
    4. Not just OU but every airline. Gets around countries consumer protection regulations. As long as airlines can offer an alternate travel option they are falling into a nice grey area.

      Trying to get a refund from QF, they are saying that I have alternative travel dates available I can choose from but if >>> I <<<< chose to not fly (even though the government wont let me) to please apply for a travel credit before the 30 April deadline. LOL

      Delete
    5. Edit; Qantas Rock!!

      Just got a call from them today as some of my initial flights changed again. I said it was unlikely we will be aloud to fly so I would prefer a refund (not credit) they approved it immediately. Will take up to 8 weeks for the payment to go through but they were very helpful and understanding. Good job Qantas and i'll be booking with them soon again!!

      Delete
  8. Anonymous10:54

    This will be a very bad year for Croatian aviation/tourism but OU may profit from state aid and less competition.

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    Replies
    1. Anonymous10:57

      Absolutely no one can profit from this situation. Maybe some cargo airlines in the short term but even they will be affected as demand for cargo transport dries up as the global economic situation worsens.

      Delete
    2. Anonymous11:20

      This will hit us all really hard, unfortunately! Hope next year will be better.

      Delete
  9. Anonymous10:56

    Unlike our former government in Slovenia, I'm glad that governments in other ex-yugo countries saw the need for national airlines and are willing to help them.

    ReplyDelete
  10. Anonymous11:19

    It's nice to see that OU still runs some minimum traffic in these hard times.

    ReplyDelete
    Replies
    1. Anonymous11:42

      I wonder who still travels abroadfrom croatia? One flight a day to frankfurt.. where are they going?

      Delete
    2. The flight is actually with a good LF (obviously the only flight from the country). Many people still need to travel to/from work, there is many Croatians working in the shipping or oil industry around the world

      https://www.tportal.hr/vijesti/clanak/u-vrijeme-kada-se-nigdje-ne-putuje-jedan-avion-svakoga-dana-polijece-iz-hrvatske-i-leti-u-srediste-europe-pogledajte-gdje-kada-i-koliko-stoji-karta-foto-20200424

      Delete
  11. Anonymous12:20

    "as well as other subjects in the industry that are privately owned”

    Hopefully some assistance can be provided to Trade Air.

    ReplyDelete
    Replies
    1. Anonymous12:22

      True. They will lose a lot of business too.

      Delete
    2. Anonymous13:28

      +1

      Delete
    3. Anonymous18:44

      Does Trade Air really contribute that much to Croatian tourism or economy that the government needs to give assistance to them?

      Delete
    4. Anonymous23:40

      Well, it pays the tax in Croatia... Shouldn't that suffice?

      Delete
  12. No future for this company as there will be no summer season this year for Croatia, and without the tourists the airline is going into one way direction, and its known that always in winter they are in the red. So don't think anything gona help. Only the time will provide answers...

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    Replies
    1. Anonymous15:23

      you wish....but won’t happen! OU will survive, CRO gvm’t will sink a ton of money in OU, as all other EU governments in their airlines, so you can sleep well :-)

      You’ve been predicting OU demise for ever, but it’s just not happening, understandably to your unsatisfaction.

      Delete
    2. Anonymous18:44

      I also don't see the Croatian government giving up on Croatia Airlines any time soon.

      Delete
  13. Did they negotiate a better Q400 lease deal with Mitesic?

    ReplyDelete
    Replies
    1. Anonymous18:42

      How is Misetic involved with the Q400s?

      Delete
    2. He has a leasing company which leases the Q400s (set up when he ran OU) which he than leases the aircraft to OU.

      Every so often a Croatia news article surfaces about this than but nothing is done about it.

      Delete
  14. Good afternoon guys! Does anyone know if the leased A319 9A-CTN is stored and the airline still pays for the rent or they are planning to return it to the lessor? Thanks.

    ReplyDelete
    Replies
    1. Anonymous18:41

      The aircraft is stored. Don't know about the financial arrangement.

      Delete
  15. Anonymous18:43

    Let's see how things turn out. I wish them good luck. Acting CEO Bajic's terms has been extended by another 6 months by the government on Thursday (they extend his term by six months each and every time because they are lazy to issue a public call for a new CEO).

    ReplyDelete
    Replies
    1. Jasmin Bajić eats regularly in Bistro Deno, as all people of Milan Bandića!! Thus, he has Bandića protection, as well as from Tina Mišetić!!

      Delete

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