Ryanair tells Croatia Airlines to “do its homework”


Low cost carrier Ryanair, which will open a base in Zagreb and Zadar this summer, has slammed Croatia Airlines’ recent complaints that the company is receiving preferential treatment in the Croatian capital. Jason McGuinness, Ryanair's Chef Commercial Officer, said, “It is inappropriate for them to complain about Ryanair after receiving millions of euros. The fact of the matter is that Croatia Airlines has not achieved growth and profit in the past four years. Ryanair will bring a total of fourteen new routes to Zagreb this year, and Croatia Airlines has brought three in the past four years. We think Croatia Airlines must do its homework again”.

Ryanair recently submitted an appeal to the EU General Court against the European Commission’s decision last December to approve 11.7 million euros in state aid to Croatia Airlines aimed at compensating the carrier for losses incurred as a result of the coronavirus outbreak and the travel restrictions introduced by Croatia and other countries to limit the spread of the virus in the period between March 19, 2020 and June 30, 2020. The budget carrier has filed similar complaints against a number of European carriers with the court determining yesterday that aid provided to Air France - KLM, as well as TAP Air Portugal violated EU rules. However, the annulments and cash repayments will be suspended until further rulings are made by the European Commission.

Commenting on state aid, Mr McGuinness noted, “We are the strongest company in Europe, and we don't get help from state funds, as is the case with other carriers, including Croatia Airlines. We do not receive such assistance, and we have the strongest balance sheets in Europe. We are the only European carrier that has achieved growth in air traffic over several years. We see that, for example, Croatia Airlines has postponed the purchase of new aircraft, while Ryanair has confirmed orders for over 210 new Boeing aircraft". Last year, Croatia Airlines said it was negotiating the cancellation of its order for four A320neo jets. Based on the company’s five-year business development plan (2020 - 2025), it intends on renewing its fleet with mid-age A319 and A320 aircraft, as well as replace wet-leases with long-term dry-leases.


Comments

  1. Anonymous09:02

    Couldn't have said it better myself.

    ReplyDelete
  2. Anonymous09:03

    FR is really going after Croatia Airlines.

    ReplyDelete
    Replies
    1. Anonymous09:03

      Their aim is to make them disappear. Then they will have a leading position in Zagreb and can dictate everything.

      Delete
    2. So, basically what Croatia Airlines is doing all these years.

      Delete
    3. Anonymous15:10

      So Croatia Airlines did poke a bear. Now they are surprised when the bear poked back?

      Delete
  3. Anonymous09:03

    They're not wrong. Croatia Airlines probably won't last much longer.

    ReplyDelete
  4. Anonymous09:05

    I'm hoping that Ryanair's arrival will have a positive impact on Croatia Airlines in the sense that it will make them wake up and start competing.

    ReplyDelete
    Replies
    1. Anonymous09:05

      Would be nice, but so far it's no looking likely.

      Delete
    2. Anonymous09:06

      How can they compete? Ryanair has 33 new routes from Croatia just this year. Croatia Airlines has 1, a one weekly flight between Split and Prague.

      Delete
    3. Anonymous09:08

      As the famous saying from Croatia Airlines goes "it is too early to react"

      Delete
    4. Anonymous10:08

      OU mgt didn't react when there was little to no competition around - what makes you think that this same team is capable to react to this competitive threat ?

      The Govt needs to bring in a crack new mgt team to take the airline forward or else, it is time for the last rites to be performed

      Delete
    5. Anonymous00:38

      Solution is quite simple - try to copy JU system with a bit of easy EU market fluidity: have a simple early morning wave arriving to ZAG around 0600 from following destinations - Tirana, Skopje, Thesalloniki, Podgorica, Dubrovnik, Split, Belgrade, Sarajevo, Timisoara, Budapest and Ljubljana. Maybe even some further airports (Athens, Larnaka, Beirut, Sofia, Bucarest, Kiev, Lviv...). And do a regular morning transfer wave to west - Frankfurt, Berlin, Cologne, Hamburg, Zurich, Vienna, Paris, Madrid, London, Amsterdam, Copenhagen, Brussels.
      It is not really complicated!
      Adjust the timetable!!!
      It is so confusing and not "transfer friendly". Use the opportunity of huge coast and 6 airports on the coast!
      Do anything!
      Now they have to try to adjust their business in a matter of WEEKS and they had years to establish themselves as AirBaltic of Balkans

      Delete
    6. Anonymous00:43

      Agree with above points. I just fear it's too late to do anything now.

      Delete
  5. Anonymous09:07

    Well said

    ReplyDelete
  6. Anonymous09:07

    How much does Ryanair receive in various incentives, deals with tourist authorities etc?

    ReplyDelete
    Replies
    1. Anonymous09:13

      Exactly a bit rich of them to be lecturing others.

      Delete
    2. Anonymous09:24

      They compete for incentives from airports just like everybody else. It's called doing business.

      Hard to compete against 100% state-owned airlines for subsidies from the said state.

      Delete
    3. Anonymous09:45

      I really see no issue in the incentive program. Croatia Airlines just can't deal with the extra competition.

      Delete
    4. Anonymous10:27

      Anon @ 9.13am - what are you talking about ? Ryanair receives incentives/subsidies of various amounts from various sources - trade partners, tourist boards, airports - and they invest it in their business to GROW and they have much to SHOW for it.

      OU receives massive handouts and the contrast is as stark as it can be ... just look at what they have received in the last 5 years and then have a look at what they have to show for it - the airline has gone backwards - unlike Ryanair.

      So yeah, OU would do great to listen and learn from such Ryanair 'lectures' (as you call them)

      Delete
  7. Anonymous09:08

    *grabs popcorn*

    ReplyDelete
    Replies
    1. Anonymous14:13

      We missed you.

      Delete
    2. Anonymous09:28

      And beer... But I didn't know that beer would be Corona....

      Delete
  8. Anonymous09:09

    I really do wonder how Croatia Airlines will survive this competition. Ryanair is obviously trying to get rid of them. The new route launches, the lawsuit, bickering in the media... They won't calm down until they win.

    ReplyDelete
    Replies
    1. Anonymous09:12

      +1

      Delete
    2. Anonymous10:32

      Croatia Airlines itself admitted that it would be in a better financial position had Zagreb Airport provided the same financial conditions for Croatia Airlines' existing operations. Perhaps it should knock on Zagreb Airport's door and request its advise, instead of insisting on this unsustainable business model and complaining like a spoiled child on media.

      Delete
    3. Anonymous14:16

      +1. It will be nice to see Wizz coming to ZAG and to have similar approach from them :D

      Delete
  9. Anonymous09:10

    LOL

    ReplyDelete
  10. Anonymous09:10

    What can Croatia Airlines realistically do at this point?

    ReplyDelete
    Replies
    1. Anonymous09:12

      Ask for more money from the state. They already indicated they will.

      Delete
    2. Anonymous10:19

      My first suggestion would be to replace the management.

      Delete
    3. Anonymous10:27

      In my opinion they should have focused on connecting the region with western Europe long ago. This would be a good source of passengers and helped them be less affected by Ryanair's arrival.

      Delete
  11. Anonymous09:11

    "Irish low-cost carrier Ryanair scored two major victories on Wednesday when Europe's second-highest court ruled that billions of dollars in state aid granted to rivals KLM and TAP were not properly carried out.

    The Luxembourg-based EU General Court said the European Commission, which signed off on the state aid, failed to adequately justify the bailouts. "

    OU is next

    ReplyDelete
  12. Anonymous09:12

    Good luck Croatia Airlines. You will need it.

    ReplyDelete
  13. Anonymous09:14

    OU had a free run at Zagreb for many years and were protected but did nothing to strengthen their position. Now the gloves are off. They should have been prepared for it.

    ReplyDelete
    Replies
    1. Anonymous09:46

      It seems they thought they would be protected for life.

      Delete
    2. Anonymous10:22

      I am sure Croatia Airlines has been warned about this and given a chance to pull itself together. It must be difficult to position yourself commercially properly, when you are politically forced to follow specific strategies (such as feeding German hubs even from your own base in addition to the coastal part of the country, despite working on developing your own hub). What they haven't considered is that their base airport does not have the same owner now and the private investor running the airport has pure commercial interest, not political.

      Delete
  14. Anonymous09:18

    No one here to blame other than Croatia Airlines.

    ReplyDelete
  15. Anonymous09:18

    Ryanair is right. Croatia Airlines should do its homework.

    ReplyDelete
  16. Anonymous09:19

    They can't do the homework themselves. They are getting a consultancy firm to tell them what to do.

    ReplyDelete
    Replies
    1. Anonymous09:30

      OU was supposed to utilise the money they get to the last eurocent and try to get back to growth. Instead they spent it on external advisors to write them a report on how they are spending the money.

      Delete
  17. Anonymous09:19

    This won't end well.

    ReplyDelete
  18. Anonymous09:27

    I would be worried if I was Croatia Airlines.

    ReplyDelete
  19. Anonymous09:31

    This is probably also waiting for Air Serbia. There is just not enough power to compete with the lowcoster.

    ReplyDelete
    Replies
    1. Anonymous09:32

      Air Serbia already competes against Wizz Air and their 18 routes from Belgrade.

      Delete
    2. Anonymous10:00

      Also against easyJet, Pegasus, Vueling,Norwegian...

      Air Serbia actually won in Nis when FR could not launch HHN-INI.

      Delete
    3. Anonymous10:30

      Unlike OU, JU did something about trying to transform and change its business to get it ready to be better positioned to compete against LCCs. Their mgt said as much years ago - which is when OU should have started down the very same path

      Delete
    4. Anonymous11:56

      And they can ask the CAD to block flights from the competitors.

      Delete
    5. Anonymous13:29

      Not for the big majority of them coming from EU or UAE.

      Fail.

      Delete
  20. Anonymous09:32

    The billions of Euros stolen from OU or forgone by them over the last thirty years, with Misetic style management who is expert at lining it's own pocket and nothing else, the airline needs to collapse.
    What this means for travel for domestic non profitable routes, or out of season, I don't know but it will be limited at best. How will I get to Split via one of the European hubs that partner with my Asian airlines? I dread to think, but this horse has been beaten to death so many times, it is time to put it out of its misery and the drain on the public purse. RIP.

    ReplyDelete
  21. Anonymous09:39

    Croatia Airlines has not responded to Ryanair's arrival at all. Is there anything they have done?

    ReplyDelete
    Replies
    1. Anonymous09:39

      The only thing they have done is reduce prices on routes they compete against Ryanair on the days Ryanair is operating that route.

      Delete
  22. Anonymous09:40

    This is sad to watch.

    ReplyDelete
  23. Anonymous09:45

    Soap opera :)

    ReplyDelete
  24. Anonymous09:46

    I don't understand that OU didn't see this coming. I mean in general, it must have known that some LCC would sooner or later start flights or base a plane.

    ReplyDelete
    Replies
    1. Anonymous00:45

      Because they thought they were protected in ZAG and they were until corona.

      Delete
  25. Anonymous09:47

    Great years ahead of Zagreb

    ReplyDelete
    Replies
    1. Anonymous09:48

      But bad for Croatia Airlines.

      Delete
  26. Anonymous09:48

    This mess was made by the government. They should have focused on selling Croatia Airlines years ago. Instead now they are going to have an even bigger loss making airline competing against Europe's largest airline on at its home base.

    ReplyDelete
    Replies
    1. Anonymous10:40

      If you want to blame the Govt for anything, then hold them to account for what they have direct control over. They can't force another airline or interested party to invest in OU if they don't want to. But what they absolutely did and still today have control over, is the right to fire and hire OU management. And given what this current team has done (ie. not done) over the past 4 years, then the Govt is wholly and solely responsible for not putting in place a team that can properly manage and navigate the airline through such troubled and challenging times.

      Our neighbour proved that you don't need your own nationals to run your airline and infact, foreigners are better placed to do so as they don't get swept up in any of the local politics and are therefore immune to such shenanigans.

      If the Govt were smart (which they aren't), they should go and head hunt their leadership which has shown itself to be head and shoulders above what we have in OU

      Delete
  27. Anonymous09:50

    What I find unfortunate is that both easy jet and Wizz Air used to fly to Zagreb but not anymore. Hope they come back too.

    ReplyDelete
    Replies
    1. Anonymous09:57

      They will come sooner or later.

      Delete
  28. Anonymous09:54

    I wonder at what cost Ryanair's arrival is coming. Not just for Croatia Airlines but for the airport too.

    ReplyDelete
    Replies
    1. Anonymous09:54

      Maybe for Croatia as a country as well...

      Delete
    2. Anonymous09:57

      I don't understand why deals between LCCs and airports/national tourism authorities are considered a "business secret" but aid to national carriers is publicized.

      Delete
  29. Anonymous09:58

    I really hope that FR considers domestic flights. It'll be very beneficial for Croatia.

    ReplyDelete
  30. Anonymous09:59

    Instead of complaining and being in denial mode, Croatia Airlines should start working on a market response to Ryanair.

    ReplyDelete
    Replies
    1. Anonymous10:00

      like they always say its probably too early. Like they missed the opportunity with LJU when they had the chance to base a Q400 there.

      Delete
  31. Anonymous10:01

    Ryanair's arrival is great news for Zagreb. Who cares what OU thinks.

    ReplyDelete
  32. Anonymous10:02

    Ryanair will be bankrupt themselves before long! They had 81% less passengers in 2020 and made significant losses. Who are ants to fly on s death trap 737 max?

    ReplyDelete
    Replies
    1. Vlad12:53

      Nice try Jasmin. Try a voodoo doll as well while you're at it.

      Delete
    2. Anonymous15:55

      Ryanair's loss in 2020 was actually lower than than their profit in 2019, let alone if you take into account their record of making profit year after year.

      They still had more than 3bn EUR in "cash" (read: liquid assets) at the end of the financial year.

      Are they close to breaking even this year? Probably not, but they are far away from bankruptcy.

      Delete
  33. Anonymous10:03

    I don't believe Ryanair is "after" Croatia Airlines. FR has seen an opportunity and seized it. We may like it or not, but whether OU will survive this is of no concern to FR. FR will come, make as much money as possible, in all ways available, and stay or leave depending on the situation. Wheter FR will leave corpses behind is of no importance to them.

    This entire OU horror story is in Croatia's hands. State owned company is a state's responsibility. Persons responsible managed not to do a thing, for a while now, and the consequences will follow.

    Having said that, I am always rooting for a regular employee in OU who has a family to feed. They have probably never been asked anything and their destiny is in someone else's hands. Like it was with YM, JP and MA.

    Regards,
    Eight

    ReplyDelete
    Replies
    1. Anonymous10:19

      "They have probably never been asked anything and their destiny is in someone else's hands."

      Sounds like a large majority of workplaces around the world.

      Delete
    2. Vlad12:55

      I disagree. I think Ryan is very much interested in seeing OU going bankrupt and becoming the majority customer at ZAG. That would enable them to dictate the terms, or pull out and make ZAG another LJU.

      Delete
    3. Anon 10:03 Super entertaining. The single only reason they based Lauda in ZAG is to attract OU Airbus rated pilots when the company collapses. They’re well after OU as they have been for many years.

      Delete
  34. Anonymous10:15

    OU has a big battle on its hands.

    ReplyDelete
  35. I have been telling for years the same Ryanair is telling today. The only thing that happened was uhljebs spitting on everything I said and wrote.

    ReplyDelete
    Replies
    1. Anonymous10:43

      Once they are out of business and sitting around unemployed in some kafana, be sure that they will still be spitting at you and others and saying that they didn't get enough support

      Delete
    2. Anonymous11:14

      Most of people who argue with you dont think that OUs managment is doing great job at all, or that they are productive, but think that your long haul plans for OU, LCC divisions or 50% of market share are only fairy tales and nothing else. And yes, im one of these people but your answers are mostly like " long haul will work if we dont have uhljebs" or "MALEV failed on long haul because they didnt have flights to India".

      Delete
    3. Actually you are the only one here arguing with me and bitterly protecting loss making feeder model, and criminal acts, nepotism and corruption in OU. Why you do so, I let other people make their own conclusions. No matter how many more anonymous posts giving you +1000 you decide to write.

      Delete
    4. Anonymous13:21

      Pozdrav, the only thing you have been telling for years is how everyone who dares to oppose your opinions is an uhljeb because they don't agree with 2x daily A350 Zagreb-Delhi flights.

      Delete
    5. Uhljeb na aparatima :) :) :) :)

      Delete
    6. Anonymous14:54

      I never protected current loss making OUs model, not even argue with you how it is good. Im only saying that your proposed model is nothing else but a fairy tale. Opening LCC division in a small legacy airline is stupidity in 2020., even far larger SAS and LOT failed at it but they found better model witch is basicly hybrid. Less service and lower ticket prices. And same are doing LH, Air Baltic etc. Basing widebodies in Croatia, especially in 1994. what you consider would be great, is stupidity, and literally same thing what OU is doing for years, and that is not knowing anything about the market potential. OU operates all year round same capacity with same frequecy on all year round routes expect BCN, LIS and DUB. Why? They dont know nothing. Same would be if they took widebodies in 1994...

      Delete
    7. Anonymous15:05

      Uhljeb na aparatima

      Delete
  36. Anonymous10:27

    You snooze you loose

    ReplyDelete
  37. Anonymous10:34

    Ryan will become in Croatia what Wizz is in Macedonia.

    ReplyDelete
    Replies
    1. Anonymous11:21

      It will not, Macedonia has only few legacies and more then 70% of passengers are carried by Wizz, on other hand in Croatia, no airline has more then 20% of market share and if Ryan is growing other airlines are too.

      Delete
    2. Anonymous11:22

      Comparing apples to oranges. NMK has no flag carrier to begin with. Plus, do you really think W6 will just be passive in a yet growing EU capital such as ZAG and let FR get along with it? At least LTN may be launched from their UK base and FCO from their future base there. It's just a matter of time.

      Delete
  38. Anonymous11:14

    Slap in the face!

    ReplyDelete
  39. Anonymous11:16

    Now we see Air Serbia will remain as the only national air carrier from ex Yugoslavia.

    ReplyDelete
  40. notLufthansa13:19

    what we have here is national carrier, with longstanding history of uhljebs slowly destroying the company and a company, which operates like swarm of locuces. One receives direct finacial stimulus from owner (state), the other has many streams of financial support, which is not coming directly from doing their business (flying). Also, one of them promotes mass tourism, which is usualy just extra pollution and not so much fun for local community. Both companies are crap, each in its own right.

    ReplyDelete
    Replies
    1. Anonymous13:28

      If it makes you feel better..

      Delete
    2. Anonymous13:47

      @13.19 - Dude, you're on an aviation portal - I think you came to the wrong place ... you need to go to the Greenpeace website instead.

      Delete
  41. Anonymous16:30

    Everything they said about OU is right, but why should everybody constantly grow like those grasshoppers called FR to destroy all the regional airports around Europe? FR is doing every possible amoraility there is and sue everything that is any kind of competition. And people here love FR, because with their 500 planes they can crush a little airline with 12 planes ... and no one cares because everything that matters are fares for 20 bucks.

    ReplyDelete
    Replies
    1. Anonymous17:24

      well said, ask FR crews are they satisfied with their working conditions, low fares come from someone elses pay

      Delete
    2. Anonymous17:32

      FR are destroying regional airports around Europe? A lot of those would never see the amount of traffic they do, if it wasn't for Ryanair and other LCCs.

      How much traffic do you think Memmingen would have, if they relied on Lufthansa?

      Delete
    3. JATBEGMEL17:43

      OU has 12 planes not because of limited demand, rather more of its poor management. OU has shown nothing in return for the subsidies it recieves from the government while opportunity after opportunity has passed them by.

      As for worker conditions at FR, you present it as if they are hostages and not employees. Alot of people use airlines like Ryan Air as a stepping stone to other airlines as they build experience. Pilots dont come out of training with open doors to global carriers, eagerly waiting them with jobs. For cabin crew, it tends to be short term work and not a career.

      Competition is good in forcing companies to remain competitive and to innovate. I honestly hope that FR's expansion in Croatia will push OU to do more, however the only response so far has been pity complaining, so I don't think anyone here is expecting much from them - unfortunately.

      Delete
  42. Anonymous18:35

    I think FR will behave the same way they did in Romania and Bulgaria. They will launch their planes on the busier routes and "attack" OU by slashing the fares as they usually classically do. Then the "national" or "flag" carriers will get their act together and finally invest in their fleet, think of more creative ways to survive and simply be more competitive. Complaining will lead to nowhere.
    OU needs to reform quick, introduce BoB, lower fares, focus on Star Alliance hubs and transfers and to also react fast as FR is like an opportunist predator and will take advantage of the situation in zero time.

    ReplyDelete
  43. Anonymous22:12

    Ryanair is becoming OU's biggest nightmare.

    ReplyDelete
  44. Anonymous00:44

    I'm not a big fan of Ryanair but I must say they said everything correctly here. Croatia Airlines needs to get its act together and fast.

    ReplyDelete

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