Croatia Airlines expands operations and fleet


Croatia Airlines will be expanding its international network from May 25 with the resumption of daily flights between Zagreb and Amsterdam, as well as the introduction of a second daily service to Frankfurt, complementing its existing one daily operation to the German city, which has been maintained throughout the coronavirus Covid-19 pandemic. The Croatian carrier restarted some domestic flights this week, with two daily services from Zagreb to both Dubrovnik and Split. However, the airline has now modified the operations, with one of the daily services operating with a triangle routing Zagreb - Split - Dubrovnik - Zagreb, due to lower demand for air travel.


Croatia Airlines’ newest addition to its fleet, an Airbus A319 aircraft registered 9A-CTN, touched down in Zagreb this Wednesday from Woensdrecht in the Netherlands sporting the carrier’s livery and new registration. The jet is eight years old and initially operated on behalf of Germania, before being utilised by HiFly Malta. It has been in storage since November of last year. The aircraft has the capacity to seat 150 passengers, which is slightly more than the rest of Croatia Airlines’ A319 fleet. The lease was negotiated prior to the widespread outbreak of Covid-19 in Europe. The A319 has been leased for a period of eight years and becomes the fifth of the type in its fleet. Furthermore, the aircraft is the youngest member of the carrier’s fleet.

9A-CTN, photo courtesy of Menno Swart

Croatia Airlines’ CEO, Jasmin Bajić, said it was too early to estimate the carrier’s losses as a result of the coronavirus. “Concerning the losses, it is too early to talk about it, as we do not know how long this crisis will last for. On one hand, you do not have revenue coming in, and on the other you do not know how big the expenses will be. We are adjusting to the current situation and are doing our job to the best of our ability. All our costs have been reduced as much as possible”, Mr Bajić said. Over the past two months, due to minimal fleet utilisation, Croatia Airlines has performed heavy maintenance on one of its Dash 8 turboprops, as well minor work on the rest of the fleet. “Our long-term strategy is to perform the majority of work in-house with our own personnel. We invest a lot of resources to maintain a stable but flexible system in our technical department, relying on highly skilled personnel. We are fully capable of performing heavy maintenance on our fleet including six-year and twelve-year checks, non-destructive testing, shop work and engineering. However, despite this extreme new situation of closed borders and limited travel, we will continue work on our fleet, for it to be completely ready when the time comes for our aircraft to fly again”, Davor Bujan, Croatia Airlines’ Technical Director, said.

Comments

  1. Anonymous09:05

    Good luck OU.

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  2. Anonymous09:07

    I'm surprised they couldn't delay the delivery of the A319.

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    Replies
    1. Anonymous09:12

      It was probably contractually impossible.

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    2. Anonymous09:34

      But I think the payment will delay...

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    3. Anonymous19:23

      Hope so.

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  3. Anonymous09:07

    Interesting that they are already downsizing their domestic network, I wonder which is performing worse, SPU or DBV? Probably SPU as it's closer and buses are a valid competitor.

    Do we know how much OU will receive from the government?

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    1. Anonymous09:11

      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”.

      https://www.exyuaviation.com/2020/04/croatia-airlines-negotiates-with.html

      Delete
    2. Anonymous09:13

      Utter and absolute nonsense. The European Union is literally approving any aid that comes to it. I mean if silly, loss making and struggling airBaltic can receive hundreds of millions in aid then why can't OU? There are no restrictions. I think the government wants to use that as en excuse to give less money to OU than they are requesting.

      Delete
    3. Anonymous09:13

      OU needs about €350.000.000 to fully stabilize its operations.

      Delete
    4. Anonymous09:17

      It isn't nonsense at all. All EU governments still have to make a case to the commission and all are being negotiated with terms like paying back the money, restructuring or something else. OU received money last year (and this year) under the promise to the commission that it will be privatised. So it is not so easy as you think.

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    5. Anonymous09:21

      EU relaxed all state aid due to corona, Croatian government can literally get anything through that it couldn't before. Look at what Germany did. So far €19 billion was approved in aid for the private sector and 52% of it was for Germany, 17% for France and 16% for Italy. They are pumping money into their economy left and right.

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    6. Anonymous09:22

      They have relaxed the rules but no you can't do whatever you want, despite what your president says.

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    7. Anonymous09:25

      So tell me, how many requests have they turned down? BT got state aid some years ago (less than ten) and now they got something like €250 million in aid from the Latvian government.

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    8. Anonymous09:26

      Well the issue is OU got state aid 8 years ago, last year and this year.

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    9. Anonymous09:28

      And unlike OU , BT restructured into a successful company and is now requesting aid because of corona. It is likely OU would be loss making this year without corona. So it's not the same.

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    10. Anonymous09:53

      BT is so successful that in H1 last year their losses grew by like 30% if not more. Hardly a successful company. People on here think the EU is some righteous, extremely lawful Union when in reality it is not. Brussels itself is as corrupt as any other place. Like I said, BT also got state aid a while ago and is receiving it right now. EU rules can be bent, it's just that the HR government doesn't care as much about OU.

      Delete
    11. Anonymous10:12

      Tarom also got aid a few months ago and now the Romanian government injected another €60 million into them. We are not talking about years here but months between two capital injections by the Romanian government.

      Delete
    12. Anonymous10:49

      Although rules regarding financial aid for airlines have become less strict still it is not allowed to just give the money to airlines. You need to get approval and, more important, these are special loans but, at the end, every loan needs to be paid back.

      Delete
    13. Anonymous11:02

      You mean like Alitalia has been paying them back? Also so far the EC has not refused any proposal which goes to show how lenient they are towards their airlines. EU will allow pretty much anything just to avoid rise in unemployment.

      Delete
    14. Anonymous11:07

      EU Commission is making a difference based on airlines that were weak and not profitable even before the Corona crisis. That is why Alitalia will have to negotiate a lot with the Commission, while on the other hand they approved the money for LH and AF immediately. Same goes for OU.

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    15. Anonymous11:12

      You do realize Italy just injected €3 billion into Alitalia and is planning on nationalizing it? Even the layoffs that were initially announced seem to be dropped.

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    16. Anonymous13:37

      all can do what they want. until FR is going to challenge the state aids through the courts. then all she sh*t will hit the fan retroactively.

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    17. Anonymous14:23

      I can't wait, it's going to be a battle of epic proportion. Clash of the titans. FR and W6 are also going to aggressively attack other airlines around.

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  4. Anonymous09:33

    If the UK is allowed to bail out Hungarian Wizz Air with 350 million pounds, Croatia can do the same with its own flag carrier.

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    1. Anonymous09:36

      They qualified for support based on their credit rating. They are also registered in the UK, just like in Hungary.

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    2. Anonymous10:24

      They qualified only because they have a UK AOC.

      Delete
  5. Anonymous09:33

    Great to see more flights resuming. But will there be demand for daily AMS and double daily FRA?

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    1. Anonymous10:24

      Don't think AMS will work out, it's still too early. I guess that soon that route will be operated by the Q400.

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    2. Anonymous10:30

      They have to start with something. They introduced domestic flights hoping loads will improve or at least that they could use that as extra request for more money. Anything is possible with OU!

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  6. Anonymous10:03

    They should restart Milan and Rome. Italy is opening its borders from 3rd of June. No quarantine requirements at all.

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  7. Ante11:14

    Guys all of this seems crazy! Like a bad dream

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  8. Anonymous11:37

    Nice to see them be productive

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  9. NOVA PRAVILA EUROPSKE UNIJE ZA POMOĆ KOMPANIJAMA
    Europska komisija je donijela nova pravila za državnu pomoć zrakoplovnim kompanijama. Kompanije koje su isplatile dividendu, otkupile dionice i isplatile bonuse ne mogu dobiti državnu pomoć. Konačno i nešto logično. U startu smrdi da kompanije koje imaju trilijune EUR, svake godine investiraju preko 100 milijardi i imaju preko 10 milijardi profita, sada nemaju za dokapitalizaciju kompanija. U najmanju ruku trebaju se odreći profita od prošle i idućih godina da bi im porezni obveznici omogućili poslovanje i dalje stjecanje profita za koju godinu.

    Pravila se odnose i na kompanije koje su već dobile hitna sredstva, koja sada moraju podnjeti izvješča kako su uporabila novac poreznih obveznika. Europska komisija neće dozvoliti bilo kakvu pomoć ako je bilo alternative, poput investicija investitora, neisplate dividenda, prodaje imovine, dizanja kredita, smanjenja narudžbi novih aviona idr.

    Ukoliko države ulaze u vlasništvo kompanija one iz njih moraju izači nakon 6 godina ako se radi o dioničkim društvima izlistanim na burzama ili 7 godina za ostale kompanije. U protivnom se mora napraviti restrukturacija uz sva pravila koja su imale i kompanije prije koronavirusa za slučaj restrukturacije (jednom u 10 godina).

    Europska unija zabranjuje da se pomoć daje kompanijama koje su bile u financijskim poteškoćama prije 31.12.2019. da se ova pomoć ne zlorabi za "dežurne gubitaše".

    Velike kompanije koje nisu vratile bar 75% novca poreznih obveznika neće smjeti kupovati ili preuzimati vlasništvo više od 10% konkurentskih zrakoplovnih kompanija.

    Europska unija ne uvjetuje da se novac mora trošiti na poboljšanje zaštite okoline, ali ostavlja mogućnost državama da postave takva ograničenja.

    Europska Komisija je do sada odobrila oko 1,9 trilijardi EUR državnih pomoći za EU ekonomiju koje su imale cilj zadržavanje radnih mjesta, zadržavane likvidnosti kompanija, osiguranje dostave repromaterijala i robe, nastavak istraživanja, te dostave potrepština za borbu protiv koronavirusa.

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    Replies
    1. Anonymous12:40

      I am sorry but I am not from ex-YU so I don't understand. Could you please write in English? Thanks

      Delete
    2. Anonymous15:25

      It will be interesting to see which EU government will comply, Italy maybe?

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    3. Anonymous15:57

      None probably.

      Delete
    4. Anonymous18:48

      Europska unija zabranjuje da se pomoć daje kompanijama koje su bile u financijskim poteškoćama prije 31.12.2019. da se ova pomoć ne zlorabi za "dežurne gubitaše".

      So, bye bye Tarom, Croatia Airlines, Air Baltic, Austrian etc?

      Delete
  10. Anonymous19:22

    I find it a bit bizarre that they have added another aircraft to the fleet in these circumastances.

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    Replies
    1. Anonymous19:23

      They probably had no other choice.

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  11. Anonymous19:29

    Great News, Bravo OU! they will be alone serving Croatian tourism for the next 4 months, no competition.... all other Airlines are busy with re-starting their our national priorities, so Croatia can pick up the slack

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    Replies
    1. Anonymous19:49

      There is a reason why they are the only one serving the tourist sector.

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    2. Anonymous22:48

      buddy, its a long time from today to September, Croatia Airlines will have their hands and planes full very soon, and so will Crotian tourism. I understand some persons may jot be happy for this to happen, but it will, Croatia is receiving great press about how we handle Covid-19, and how Croatia is a “green light” country to visit.

      Delete
    3. Anonymous06:50

      Well very few people in Croatia share your optimism especially the government which is desperately looking for new markets to attract, first it was the Czechs, then the Slovenes... let's see who their next target it. Reminds me a bit of all those potential buyers for OU, everyone interested but no takers. This year the tourism market will be tiny, that is why Croatia will suffer like the rest of them will.

      Delete

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