Ryanair will be operating 25 routes out of the Croatian capital by the end of the year, just six months in from commencing operations to the city. Its CEO, Eddie Wilson, has said there is enough room for the budget carrier and the national airline to coexist in Zagreb. “Historically, if I look at Ireland and what happened when we started out, a low fares airline against Aer Lingus, everyone said the whole world was going to fall in and that Ryanair was going to take over everything. We didn’t. We just made Aer Lingus more competitive. They are a stronger airline because of us”, Mr Wilson said. He added, “Ireland is now one of the most connected places in terms of air travel. We have over 200 destinations out of Dublin Airport. We have transatlantic services other large cities could only dream about and we have probably the most connected city in Europe. That’s because we have two private companies that can compete and be more efficient and I have no doubt that it will happen here too. What I do know is that if you come back here [Zagreb] in five years’ time, passenger numbers will have grown at this airport significantly. It will just mean that everyone will become more efficient, and everyone will be paying less. There is room for everyone”.
Despite the friendly tone, Ryanair has filed a lawsuit against the European Commission’s decision to approve state aid for Croatia Airlines in 2020. “We have lawsuits across Europe. Why would taxpayers pay over thirty billion euros in state aid to make airlines smaller? No one worries who owns the roads, railways or hotels or shops, but governments seem to be obsessed about airlines and maybe it’s because they have their flag on them. Perhaps they could paint their flag on the back of our aircraft. That would save everyone a lot of money. State aid is not going to work. Look at what happened with Alitalia”, the CEO noted.
Mr Wilson said his airline is launching flights to Zagreb because it sees opportunities but also because of the airport’s incentive policy. “We don’t get any subsidies. What you have here is that an airport needs passengers and they put an incentive in. That’s a published scheme, it’s not a secret deal and any airline can access it, Croatia Airlines included. We are all for transparency because the airport here has invested in fantastic facilities. The only way they are going to get a return on that is not by putting up prices but by generating more passengers to spread it across their fixed costs. So, the more passengers they get, the more efficient they get and the more revenue streams they get. It’s the way everything works. Constraining that is the wrong way to do it”, Mr Wilson concluded.
Croatia Airlines had over 6 months to use the incentive program Ryanair is using. So far they have launched 0 new routes from Zagreb. Ryanair is at 25.
ReplyDelete+1
DeleteAgree. 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.
DeleteIt seems they thought they would be protected for life.
DeleteNot defending OU one bit but I don't think anyone would have expected Ryanair to have 3 planes based in Zagreb by the end of the year.
DeleteRyanair is an old, cunning predator. They are opportunistic similar to the big cats. They knew about the OU monopoly and were patiently waiting for the moment they can negotiate with the management. They know they are wanted by smaller airports and hence immediately reacted by launching so many routes. After all, this is one of Europe's largest airlines.
DeleteYou make it sound like there is something wrong with this kind of behavior.
DeleteWell, sure it is, if you're an employee. When your employer starts abusing you, then you'll know what's wrong with this kind of behavior.
DeleteFake news, look at real results.
DeleteI don’t agree with him. I think Croatia Airlines will be squeezed out.
ReplyDeleteIt will, but by own fault and lack of management competences, not because of any competition including Ryan.
DeleteReading between the lines of what Ryanair’s CEO said - Croatia should put its flag on Ryanair’s planes and not waste money on OU, people should not subsidise Croatia Airlines, Croatia Airlines has done nothing and has been stagnating for years, Zagreb Airport strategy of having high fees has failed and has now turned to generating lots of passengers to get a return on the money spent to build the terminal.
ReplyDeleteI agree the space for both exist. But not with the model, managements and political influence OU has been having for 30 years. OU can survive with FR in ZAG, but only if it changes totally, drastically, thoroughly and immediately in a way to grow dramatically, stop feeding Mutti and create proper hub in synergy with ZAG. However chances for that to happen after 30 lost years and hundreds of lost opportunities are close to zero.
ReplyDelete... hold on - but what about the BCG review ?? The way it was positioned, they will "show them the light" and provide some salvation ....
DeleteBTW, crazy how long this review is taking, right ? Montenegro launched a new airline in the time it is taking these "world beaters" to conduct a market/route review, in a period when anything you do (as opposed to nothing), will provide upside !
The only reason why BCG is there is to split the money
DeleteThey need to do what Jat did and to transform themselves so that they could compete with Wizz Air. Unfortunately I don't think there is much political interest for that in Croatia.
DeleteHope so but I think Croatia Airlines growth opportunities are becoming smallet and smaller
ReplyDeleteCroatia Airlines needs to get its act together and fast.
DeleteCroatia Airlines probably won't last much longer.
ReplyDeleteI'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.
ReplyDeleteSo far it has had none. They launched one new routes, once per week, for a few weeks from Split to Prague. And they kept their suspension for many routes from Zagreb.
DeleteI 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.
ReplyDeleteWhat can Croatia Airlines realistically do at this point?
ReplyDeleteAsk for more money from the state.
DeleteMy first suggestion would be to replace the management.
DeleteIn 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.
DeleteGo and headhunt the foreigners running JU ...
DeleteThere are capable people in Croatia that could run the airline successfully. The problem is they are not part of the ruling elite.
DeleteFully agree with you, except "elite" should be under quotations because the team succesfully destroying Croatia as a country and Croatia as a company is light years away for being any elite in any meaning
DeleteIf they are successful and efficient in destruction of wealth then they could be called "elite" as well :)
DeleteJoking aside, they are not the only one , this behaviour is product of short term greed and you can observe it everywhere and in time of big tectonic changes it is visible in some so called "mature" democracies LOL
LOL
ReplyDeleteGood luck Croatia Airlines. You will need it.
ReplyDeleteI would be worried if I was Croatia Airlines.
DeleteNo one here to blame other than Croatia Airlines.
ReplyDeleteI 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.
DeleteCroatia Airlines has not responded to Ryanair's arrival at all. Is there anything they have done?
ReplyDeleteAppointed international management consultants to tell them what to do because they don't know what to do
DeleteBut what have the consultants done so far? I haven't seen any major changes.
DeleteThis is sad to watch.
ReplyDeleteGreat years ahead of Zagreb
ReplyDeleteThis 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.
ReplyDeleteIt is real pleasure to read and place comments here.
ReplyDeleteWhen I compare it with some other calling itself "regional" blogs run by "experts" it looks very clean and tidy here.
Thank you very much ex-yu!
My thoughts exactly
DeleteOU will Falk and than you will see how hard it is to have an airline. Better have a carrier which takes you to cities you like not like Ryanair to cheap weird cities like dortund!!
ReplyDeleteAnonymus 12:32, you're putting it like it's our fault OU is doing absolutely nothing.
DeleteDortmund is such a village, only has population of 600k.
DeleteI am sorry, I love OU but they were very passive during the last years and missed so many opportunities. FR arrival will only be beneficial as it will stimulate more Croats to travel and create a locomotion for them to be more competitive, especially on the busy routes. Hoping to see a third player in ZAG as well. As duopoly is not the best option neither.
ReplyDeleteOf course he makes such comments when he knows that his opponent is on life support. He wasn't that kind when he spoke of competition that is not so easy to kill off.
ReplyDeleteMr Wilson: "State aid is not going to work. Look at what happened with Alitalia”
ReplyDeleteYeah Mr Wilson, but did you see Mr Wilson the consequences of that? Air China is transporting mask to Bergamo last year and Italian government could not provide even basic need like transportation let alone produce necessary equipment! What a shame!
When i read between the lines the headline says "Theres enough room for Ryanair and Air Serbia in Ex Yu" ...
ReplyDeleteOU has a big battle on its hands.
ReplyDeleteRyan will become in Croatia what Wizz is in Macedonia.
ReplyDeleteNo it will not. You accidentally or deliberately forgot that Croatia, unlike NM, has 8 international airports, 3 big and important, served by 80 foreign airlines. Not the case with Northern Macedonia. So no,, Ryanair will not become in Croatia what Wizz is in NM.
DeleteFor sure not in Croatia but certainly in ZAG if OU don't get more financial support from government. In comparison with big EU3 OU has got nothing! More financial help for OU!
DeleteRumors are running around that Croatia will take two a330-900's for long haul.
ReplyDeleteGood joke
DeleteI heard the rumours, just I heard it's A380 :) :) :) LOL!!!!
DeletePeople with matter confirmed, days from public conformation.
Deleteanother covid mutation restrictions and/or poor loading factor and Ryanair is gone...
ReplyDeleteSto se babi htilo to joj se i snilo
Delete