Croatia Airlines has suspended plans to launch seasonal flights from Zagreb to Sofia and Podgorica this year. Services were initially to commence this week but were rescheduled for June 1 and 2 respectively due to the coronavirus Covid-19 pandemic. However, the planned new flights have now been completely dropped and ticket sales have been suspended. Both routes were to be maintained three times per week with the airline’s Q400 turboprop aircraft. Croatia Airlines’ CEO, Jasmin Bajić, warned last month the services could be shelved. The carrier has so far cancelled over 3.200 flights due to the pandemic. It continues to maintain a single daily service between the Croatian capital and Frankfurt, while it will resume domestic flights from Zagreb to Dubrovnik and Split as of next Monday. The remainder of its domestic network is expected to restart on May 18.
Croatia Airlines is currently seeking a solution to stabilise its finances as a result of the coronavirus pandemic. The airline has reduced its expenses, however, revenue in April was down by fifteen million euros, while passenger numbers decreased by 95%, following a 56% decline in March. “Our results are such that we are sharing the same destiny as other companies in the transport and tourism sector in Croatia. The extent of the losses will depend on the duration of this crisis and how long the recovery will take. We have taken action, and, as a result, none of our employees have been dismissed or furloughed”, the head of Croatia Airlines’ Commercial Division, Slaven Žabo, said.
Croatia Airlines has delayed the publication of its first quarter financial report due to Covid-19 and will make its results public by June 30. The Croatian government said it plans to assist its national carrier in overcoming the financial fallout, however, it noted the scope of the aid will depend on negotiations with the European Commission. “What we can do at this point is cover the airline’s losses. However, there must 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”, Dinko Staničić, the Director of the Civil Aviation Sector at the Ministry for Sea, Transport and Infrastructure, said recently.
Expected unfortunately.
ReplyDeleteNice to see that they managed to get out of the contract with MNE. I guess MNE knew OU had a good legal standing given the extraordinary circumstances. I doubt they'll be back though. Economic situation in Croatia is very difficult and OU struggled even when times were good.
ReplyDeleteDo you maybe know what were the details of the contract?
DeleteSomeone reported they got money for marketing activities which is an aviation standard.
Deleteif there ever was one
DeleteWas there or wasn't there a contract?
DeleteOf course there was. Almost all airports support new or returning airlines.
Deletesource and links pls. thanks
DeleteI work for MZLZ. Are you that stupid to think these contracts are published online?
Deleteand sure every paper is going through your hands ...
DeleteNo but people talk and a few weeks ago I mentioned on here that SOF was not happening. TGD is news though. So please, stop with your usual hatred BS just because you disagree with someone or something.
Delete^ I remember what you wrote a few days ago so thank you for that :) Do you by any chance know how advanced bookings went for these two routes, or which one was more popular SOF or TGD?
DeleteI am not working now because of corona virus so I don't really know. A friend from OU told me that loads this summer are horrible as there were almost no bookings the past two months. We never had something like this.
DeleteThanks man and please ignore the haters.
DeleteI still think there might have been P2P demand between Podgorica and Zagreb no?
ReplyDeleteTGD never made sense so this is expected.
ReplyDeleteI was saying this months ago
DeleteHope they will consider it for next year.
ReplyDelete+1
DeleteBut then hopefully with a better schedule and transfer options in both directions!!
DeleteIn both directions in Zagreb I meant meaning for the outbound leg from ZAG and the again for inbound pax arriving in ZAG.
Delete:(
ReplyDeleteCompletely understandable and very smart move.
ReplyDelete+100 Agree. New routes need some time to mature and under these circumstances better to save the expenditure.
DeleteBut who did they expect to carry in TGD? Almost no locals and very bad connectivity.
DeleteThere was obviously sufficient demand for three weekly flights on a 80 seat plane.
DeleteWhy obviously? OU is not really a shining example of professionalism.
Deletewho is/was flying from LJU then?
DeleteDon't know but there must be a reason why YM boosted LJU while they don't fly to ZAG.
DeleteUnfortunate but considering the circumstances understandable. In the grand scheme of things its just 6 weekly flights. They can start them next year when things calm down.
ReplyDeleteOU needs to abandon this game of going after transfer passengers. They are not winning and they are only successful in a few destinations as well as those where they get money (OMO). Time to focus on point to point passengers and to fight for the coastal traffic. Transfer game requires deep pockets and massive investment like the Serbs did for JU. OU got so much money but used them on random, stupid things. Where did the €100 million go from a few years ago? Management only started thinking of solutions when they ran out of taxpayer money.
ReplyDeleteOU caries a whole lot of transfer passengers during the summer. Their domestic flights in summer are 90% transfers from the rest of Europe.
DeleteAha and what happens when winter comes or if there is no summer Eason like this year?
DeleteWell this is the first time "there is no summer season". You wrote as if it happens every few years and it is a normal occurrence. Other airlines will also be hit by there being "no summer season" regardless if they are transfer or P2P airlines.
DeleteOf course in winter there is less transfer demand. That's why there are fewer frequencies on domestic flights in winter. And you think if they focused purely on coastal traffic like you suggest there would be demand for flights from Dubrovnik or Split to 10 or more European cities in winter? Unfortunately not.
Well last Anon your comment would make sense if OU was not being pushed out of the coast year by year. Look at how much easyJet took away their market and now even Volotea is. OU couldn't even get the contract for winter charters. First Aegean got it and now that Turkish airline. This is the new normal in Croatia where many local companies are being replaced by foreign ones. Winter is not the problem here, it's the politicians who are not allowing competent people in OU to do their job! #uhljebi
DeleteI'm not saying that the management did a good job, far from it. I'm just not convinced the airline should abandon flights from Zagreb and fly from the coast instead. It is very difficult to compete against easyjet with 50 euro fares to the coast.
DeleteYou misunderstood what I wrote, I did not imply they should leave ZAG just that they should focus on O&D market.
Deleteif OU (and same is aplicable for JU) is to focus only on O&D they will need to shrink at least by one third and get rid of all their Airbuses/Boeings
DeleteI'm assuming they won't be getting that extra Q400 they planned to lease from Austrian?
ReplyDeleteOf course.
Deletedidnt OS shelved all of its Q400 because of the situation?
Delete* They announced the phase out of all Q400s last year, before the coronavirus.
DeleteI'm sure OS will not cancel the contract to having sold that Dash to OU so OU will have a tough time getting out of it.
DeleteYes but they were supposed to phase them out until 2023, now they are being retired immediately.
DeleteOS? No they are not retiring them immediately. In contrast, I read few days ago that they will after ops restart use smaller planes more often even on citypairs that usually see only Airbus aircrafts.
DeleteIn my opinion it makes sense to rather fly with a half empty Dash or Embraer compred to a 20% filled A320 in order to save costs.
What they announced is to also phase out all A319 and the 3 oldest 763s in addition to the Dashs, but only gradually.
Sad. It will be good if some regular routes aren't cancelled too (not just OU but all other airlines too).
ReplyDeleteRealistically speaking, can OU survive corona? I mean they'll get the money but with demand not picking up how long before they need a new capital injection?
ReplyDeleteThe government will give them the support they need. Once the tourism industry recovers, OU will be needed (and even more so before with fewer foreign airlines flying).
DeleteAnd how easyJet can survive without support?
DeleteThey are getting support actually. And they have a completely different business model.
DeleteAll ex-Yu airlines will survive corona. You all forget that this is an election year in Croatia, Serbia and Montenegro. No one is going to let these airline collapse before people go to vote.
DeleteBut how long can they last on this state aid? YM and JU are safe but OU has the EU legislation.
DeleteLast anon +1
DeleteWhat worries me is summer will be weak but winter which is always weak will be even weaker. So OU needs a lot of money to survive the next 12, not 2-3, months.
DeleteCROATIA AIRLINES na aparatima! Kad turistička godina bila odlična kao 2019 , i tada oni su bili u teškim gubicima.
ReplyDeleteTvrtku na daljinsko upravljanje vodi izvesni Jasmin Bajić kojem je referenca da je sa Ivanom Mišetić napisao knjigu , da je kćer Ivana Mišetića Tena, čak šefica kabineta premijera Plenkovića, te da je počeo ručati u bistro Deno na Ljubljanica gdje jedu svi Bandić ljudi te je tako otkrio da ga Milan Bandić drži!!
Za vršioca dužnosti predsjednika uprave Croatia Airlines biran je četiri puta zaredom po šest mjeseci šta rekord nad rekordima!! Sa Croatia Airlines je nulti interes pi u prošloj uspešnoj gornji nitko nije ponudio niti kunu za nju.
CROATIA AIRLINES na proslavu svojih 30 godina nije pozvala svog prvog direktora stjepko sarjanović a koji kunu nije uzeo, ali je pozvala tog Ivana Mišetića koji ju je tužio na sudu i traži da mu isplati pet i po miliona KN , a teško ju je oštetio sklapajući loše ugovore za prodaju karata Hrvatima u Americi!! Zbog čega je direktor kučko bio prisiljen prodati slotove na londonskom aerodromu Heatrow!!!!
https://zpadjen.wordpress.com/.../cpt-kresimir-petrin.../
https://objektivno.hr/igra-prijestolja-na-hrvatski-nacin...
=.=
DeleteBravo Hrvatska?
DeleteThese were going to be seasonal routes right?
ReplyDeleteYes
Delete"Croatia Airlines has suspended plans to launch seasonal flights from Zagreb to Sofia and Podgorica this year."
lol oops. Thanks :)
DeleteIt will certainly be a summer like no other.
ReplyDeletePlenty in the 90s which were probably worse
DeleteActually sad for OU and SOF. This route could have matured similar to BEG and also the success of JP when it was launched. Hopefully, OU reconsiders the flights in 2021.
ReplyDeleteLCC are now aggressively launching their 2021 timetables and OU must do the same...
I agree that airlines should hurry up and launch their 2021 summer timetable. It would allow people to book in advance (while people still have some money saved up) and provide much needed liquidity for airlines.
DeleteIn same time Croatia will not fly this year to Helsinki, Stockholm, Oslo, Milano and St.Petersburg this summer. For sure some other seasonal routes will also be canceled in few days, especially from Adriatic airports.
ReplyDeleteWow there will be a lot of grounded planes these summer. Will be quite a sad sight especially now when they actually decided to expand their fleet.
DeleteSo basically the only way to fly out from CRO will be through Frankfurt for at least another 2 months? Dalmatia will be a cutoff wolfhole once again, like in the years before the arrival of Ryanair and other LCCs :(
ReplyDeleteGood decision. Croatia is anyway too expensive for Bulgarians.
ReplyDeleteIntroducing flights ZAG-SOF was a good idea
DeleteCancelling flights ZAG-SOF is a good idea.
LOOL
Chalkidiki is the haven of the poorer tourists. It is very close from the border.
DeleteSpoken like someone who has never been there. People go there not because it's cheap but rather because it's close and because nature is stunning (like anywhere in Greece really). Also Thessaloniki is right there so you can go and enjoy some shopping, food, history... For example you can't compare Split to Thessaloniki. The latter is a real city that's alive the whole year. Split is cute but rather small.
DeleteSKG has much bigger air traffic during winter time than tiny SPU
DeleteI don't know about this. Maybe they should have delayed it until August. The EU now seems to be willing to "save summer" so to speak. They could have left the Sofia flights.
ReplyDelete