Croatia Airlines is putting a greater focus on secondary cities as the carrier seeks new opportunities and looks to become more competitive. Following the recent announcement of its new limited operations between Osijek and Munich, the carrier says it will explore opportunities to extend the flights and add more routes. Furthermore, it is considering additional operations from Skopje, as well as introducing services from Ljubljana. “We decided to commence flights between Osijek and Munich because they will provide good connections to the rest of Europe. This service will be operated on a two-month trial basis, but we are in discussions over a three-year contract”, Croatia Airlines’ CEO, Jasmin Bajić, said. The Osijek flights, launching November 15, will be maintained with the routing Zagreb - Munich - Osijek - Munich - Zagreb.
The Croatian carrier is also considering the W route pattern for other flights in the region. It is looking into the possibility of linking Skopje and Ljubljana. Over 40.000 passengers flew between Macedonia’s and Slovenia’s capital cities each year prior to the bankruptcy of Adria Airways in late September of 2019. The route has been unserved since. Ljubljana Airport’s operator Fraport Slovenija had previously expressed interest in Croatia Airlines serving Vienna, Skopje, Prague and Copenhagen. Earlier this month, Mr Bajić said the carrier is in talks with Slovenian authorities over improving Ljubljana’s connectivity. “Croatia Airlines is potentially interested in establishing flights from Ljubljana Airport in order to enable passengers from Slovenia to connect to European destinations”, the carrier said.
The developments come as Ryanair continues to expand at Croatia Airlines’ main hub of Zagreb with the arrival of a third aircraft and eight new routes in December. The budget carrier has said it is in discussions with the airport to base an additional two jets next summer season. However, Ryanair group CEO, Michael O'Leary, noted the company wants Croatia Airlines to be a "living and healthy" carrier, as they do not have the same passenger structure nor fly to the same destinations and airports. "We care that Croatia Airlines lives, and we did not come here to destroy it, but we came to create healthy competition, and just as the route to Dublin did not destroy Poland’s LOT or Aer Lingus, neither will it destroy Croatia Airlines", Mr O'Leary said.
In my opinion, their main focus should be Zagreb and trying to deal with Ryanair's onslaught.
ReplyDeleteI'm glad they are exploring new routes. This is best strategy they could have under current circumstances.
DeleteThey are looking for a three year contract from OSI? Smells like subsidies to me.
ReplyDeleteand? What kind of problem do you have with that?
DeleteHighly likely. And I assume they are seeking the same from Ljubljana and Skopje.
DeleteAnon 09.07 It goes to show that they are not looking for new commercial opportunities but new sources of income where they can milk taxpayers some more.
DeleteAnon 9:19
DeleteAlways the same. Of course, it's about subsidies that many airports pay to an airline. And where is the problem? And if taxes are not paid for this, then for some other political nonsense. Or do you think that because of that the taxes will be less or even eliminated?
You do realise Ryanair are only in Zagreb for the subsidies?
DeleteI spoke of everywhere. Subsidies is nothing special for hrvatska
DeleteWaste of money. I don't think these Osijek flights will be successful. But let's see.
DeleteAnon 09:38
DeleteRyanair receives incentives at Zagreb, not subsidies. And those incentives are paid by the private company, not from the government budget.
These could work
ReplyDeleteZagreb - Skopje - Ljubljana - Skopje - Zagreb
Zagreb - Ljubljana - Munich - Ljubljana - Zagreb
It could work in winter but what do you do in summer when they need planes in Zagreb and the Croatian coast?
DeletePerhaps "Zagreb - Munich - Ljubljana - Munich - Zagreb" would be better?
Delete😃
DeleteOpps sorry, yes meant ZAG=MUC-LJU-MUC-ZAG :D
DeleteWhich other routes could they introduce from Osijek?
ReplyDeleteFrankfurt and Paris come to mind.
DeleteFrankfurt, Varsava, Zürich and London
DeleteHelsinki would be cool as well
DeleteThey don't even fly from Zagreb to Warsaw so I doubt they will from Osijek.
DeleteHonolulu?
DeleteThat's it - when you have no strategy, run away somewhere else irrelevant, instead of fighting to keep your house intact
ReplyDeleteI think they are aware that it is too late. If they haven't reacted when Ryanair announced its first few flights to Zagreb, what are they going to do now when there are over 20 routes. Also from what I've heard ZAG had told FR to slow down a bit.
DeleteNo airline can keep its house intact vs Ryanair. therefore, it has to expand and search for new opportunities. That`s basically how capitalism works: you must never stagnate and entrench yourself, but either expand or sell yourself to the one that is expanding.
Deleteif that is true, then how on earth did Aer Lingus manage not only to survive, but to prosper and even grow to become a stronger airline ? They didn't run away to Shannon or Cork .... that's how a good management team works - they face their challenges head-on and find new and innovative ways as to how to reinvent their business model to ensure that they stay relevant
DeleteWhat about trying to restart discontinued flights from Zagreb like Helsinki, Oslo, Stockholm, Barcelona, Lisbon, Milan....
ReplyDeleteI doubt we will see Lisbon come back since it has already been launched by TAP.
DeleteMost have already been covered by Ryanair.
DeleteRyanair will overtake the routes; and Lisbon is already connected by TAP
DeleteThis sounds like Adria's strategy.
ReplyDeleteThe resemblance is uncanny. PR drive to hide your weakness (dreams of purchasing new aircraft for the fleet), expanding to secondary bases to feed LH hubs...
DeleteLet's hope those talks with Aegean over acquisition restart ASAP. I don't see them being able to survive for long if they go it alone.
ReplyDeleteAll of OU's planned strategies to counter Ryanair seem so distant and unrealistic like buying 15 planes, getting Aegean to become its strategic partner... What they could have done and been successful at was launching new routes as soon as Ryanair announced its arrival in Zagreb which was in March!
DeleteWhat would be the benefit to Aegean in this deal? What tangible asset would they receive, even if they receive Croatia Airlines for one euro?
DeleteCroatia Airlines is struggling in Zagreb and the Adriatic coast is already a battlefield of numerous airlines and it is a highly seasonal market.
They would have to deal with Ryanair on yet another market, similar to their own. I simply don't see any added value to Aegean.
Aegean is highly profitabile airline which is also very succesful. They have great managment and they know what they are going. Idea that Aegean will take a part in Croatia is not made up, Aegean showed intrest. And they definitly know their goals and whats good them better than some commentator on aviation blogs like you and me.
DeleteAegean successfully fended off Ryan at Athens. And in Chania. Ryanair's PR team had to scramble and release a whining statement saying they did not get support (=subsidies) and that's why the routes did not work out. Aegean is Croatia's best chance. Now if they will actually want to do anything with Croatia is another thing.
DeleteI am not questioning anything said above. However, my question remained unanswered.
DeleteWhat would be the benefit to Aegean in this deal? What tangible asset would they obtain, even if they get Croatia Airlines for one euro, debt free?
Expansion so they can be even larger and even more profitabile airline.
DeleteMOL is a proven liar. He’s here to destroy CTN, but only with CTN’s assistance. Aer Lingus and RYR have coexisted in DUB successfully, so it can be done in ZAG as well. Key is that CTN management continue their work in the current way, shape and form, and MOL’s success is guaranteed.
ReplyDeleteThe real issue is why Croatia Airiness is unprepared to compete with Ryanair? They are not the first or last to have an LCC based at their home airport
DeleteCompetition is a healthy thing. It will stimulate more travel.
DeleteThe difference is, unlike OU, Aer Lingus is part of a privately owned airline group and is run for profit.
DeleteWouldn't it make more sense to start more European routes from Dubrovnik and Split then from Osijek?
ReplyDeleteYou have competition in DBV and SPU.
DeleteJust watch Ryanair come to Osijek again very soon.
ReplyDeleteProbably. The most popular markets from Osijek are ideal for Ryanair.
DeleteThis is good news for Slavonija. I hope they eventually base a Dash there.
ReplyDeleteWell they should do something so they can compete. These plans are not so bad. But they also said how they want to become the transfer airline for south east Europe yet this winter they only fly to Sarajevo and Skopje in the region.
ReplyDeleteI think creating bases in LJU and SKP is a very strategic move since LJU isn’t served well with a hand full of destinations so as SKP...
DeleteJust OU talking more about plans which rarely become reality.
ReplyDeleteCroatia Airlines' growth opportunities are becoming smaller and smaller, that's for sure.
ReplyDeleteThey had many years to prepare for serious competition and it was bound to happen at some point. They must have been aware of that.
DeleteTrue but it could have not come at a worse time, during the pandemic.
DeleteThey should have been better prepared.
DeleteStrategy could be 'too little, too late'. They could have easily moved before RF in that direction few years ago. They seem to have very 'socialist' management or LH is the final decision maker behind the curtain. Either way they seem to me completely 'lost'. AS seems to have much more pro-active management, bolder moves at least some 'pulse in the body' and desire to fight. Not sure for how long CRO government can prop them (as noted from djafte kurafte.me report) If there are no issues with the EU laws I think this could be 'socialism' at its best. Amazing, one would think that western leaning ex-YU republics with strong 'head start' vs. the rest would incorporate all this and continue pushing forward, yet it turns out with both Slovenia and maybe CRO that is not the case. They had so much opportunities with strong CRO diaspora plus amazing coast to really dominate, yet they turned in this 'dormant' hybrid of old YU socialist mentality and LH puppet. Could be that when both hands are tied, chances of survival are limited, unless CRO gov (read taxpayer) is there to keep national symbol alive.
ReplyDeleteYou are completely right. Unfortunately years of mismanagement and corruption have brought Croatia Airlines to where it is today. Like you say, its too little too late now. I don't see a solution for them at this point.
DeleteOU have been very passive during the last years and missed so many opportunities. At the same time, 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.
DeleteThis airline actually has a lot of potential. When you put it down on paper, there are so many opportunities but things have to change from the ground up in the company in order to achieve any of them.
DeleteI sign under every single word @An.09.46, but you should be careful because people with the mindset you talk about, advocating OU, will soon be here to spit on you and call you names. Or maybe it's reserved just for me because I mention crime and corruption as well, which significantly contribute to OU overall situation
DeleteIt turns out that Kucko's plan from a few years ago, for OU to open up bases in several nearby countries like Bosnia and Albania would have put them in a much better position than they are in now.
ReplyDeleteI can only imagine what their costs would be like in such a case.
DeleteHe could have done it if he wanted to.
DeleteShould have introduced Ljubljana W formation flights in November 2019!
ReplyDeleteAnd Skopje in 2010.
DeleteLet's start competing and strategizing by first appointing a full term CEO rather than having an acting CEO and extending his term every six months.
ReplyDeleteAs if that would make any difference.
DeleteThey have a lot of work ahead of them
ReplyDeleteI've lost all hope for OU.
ReplyDeleteOU's response to Ryanair so far (updated):
ReplyDelete1. Do not resume majority of routes from Zagreb
2. Launch seasonal one weekly Split - Prague (but suspend Zagreb - Prague which will be launched by another LCC in a few months).
3. Downgrade catering - previous economy class meal boxes are now business class meals.
4. Lease out a plane in peak season.
5. Pay consulting company to draft you a post Covid strategy
6. Say you are interested in fleet renewal
7. Launch new flights to Munich for two months, talk about interest to fly between Ljubljana and Skopje
They redesigned their website too :)
DeleteWell at least they have started doing something. I think this is a good first step with the new Osijek flights.
Delete^ How will a 2x weekly flight from Osijek make them more competitive against Ryanair?
DeleteIf you assign a cost controller as a CEO to an airline, then you shouldn't be surprised to see 2x weekly Osijek-Munich flights as a response to Ryanair's 24 routes with 3 planes and 62 weekly flights at your own base.
DeleteGood luck OU.
ReplyDeleteAt this point, I think, they should seek even closer ties with Lufthansa, maybe even get LH to take it completely under its own wing. I think this is the only way they will stay afloat.
ReplyDeleteI think Lufthansa is more than happy having Croatia Airlines where it is at the moment.
DeleteLH already have a lot on their plate (Austrian, Brussels). Can't see any reason why they would make any effort for OU after they let JP go under.
DeleteI give Ex-Yu airlines a best before date of 10 to 15 years max before their collapse!
DeleteI think you are being generous with the timeframe.
DeleteThe saga continues.
ReplyDeleteI'm in Belgrade and browsing through Instagram yesterday I got a sponsored (and obviously targeted) post from Croatia Airlines that they are launching Osijek-Munich flights. So it seems they are hoping to attract passengers from Serbia on these as well.
ReplyDeleteFinally something smart from them.
DeleteI would not call that smart.
DeleteBelgrade has 14 weekly flights to MUC and why on Earth would someone pay additional transportation costs, go through the border and lose at least 2 hours more just to fly once weekly from OSI?
Nonsense.
There are parts of Serbia closer to Osijek than Belgrade.
DeleteNot many cities except Sombor where the driving difference is only 1 hour (not included waiting on the border that could be quite long) which is absolutely insignificant taking in consideration how many more flights to MUC Belgrade can offer.
DeleteStill its near some cities and villages in Serbia and someone from there will probably use this service. You cannot lose anything with promotion on Instagram, you can only gain.
DeleteA lot of Vojvodina people travel via Budapest, which is even better than BG, not to mention Osijek
DeleteBeing near does not mean getting there faster.
DeleteDavor, are you really comparing Budapest with Osijek?
I don't understand why they don't operate W rotation for Rome flights?? Zagreb - Rome - Split/Dubrovnik - Rome - Zagreb. It would make them more competitive against Ryanair which flies nonstop from Zagreb to Rome!
ReplyDeleteJust one remark about the headline : In order to shift strategy, you need to have one. OU has no strategy at all, that"s the biggest problem, actually entire country as well...
ReplyDeleteIn that case, why don't you pack your bags and leave for someplace else?
DeleteTo Cacak you mean? Because all the people who criticize your precious Party and its branch OU are traters and haters, and have no right to say anything about it, no matter how correct they are? It would be better, much better, if you and the likesu, pack your bag and make space for people who really love the country, not just still from it
Deletedoes this mean they are considering more then one route from SKP?
ReplyDeleteLjubljana and Split perhaps.
There are more possibilities but they could affect their transfer loads and are indirectly competing with Wizz. like AMS or BRU for example which get a lot of transfer pax. I was thinking about a PRG route with their Dash but I see they dont even fly there from ZAG....
LJU, SPU,DBV, AMS, CDG, MUC, FRA. Any of these would be great and welcomed additions for SKP! I’m sure they will get a lot of attraction
Delete+1 last anon
DeleteTo do that they will need to base a plane or two in SKP, and that will never going to happen. Most likely it will be W rotation, but the problem with W rotation is that is only good for direct pax, not for transit. The way routes are timed now lets say in AMS for example all the planes for connections are set to arrive at about the same time and depart about the same time.
DeleteSo you have plane from JFK that lands at 10:30 am. and departs at 12:30 pm. and plane from ZAG that land about the same time, so transfer from ZAG to JFK via AMS will be about 2 hours, and same with JFK to ZAG.
and if the plane is doing W rotation ZAG-AMS-SKP-AMS-ZAG the transfer from JFK to ZAG will be 8 hours instead of 2, and pax from SKP wont be able to use the connection,
but anyway lets hope that whatever happens will be good for OU and for the passengers.
Is this not worth Bravo Hrvatska??
ReplyDeleteErrr... not yet. :)
DeleteDead man walking!
ReplyDeleteAnyway, good luck.
Worth a shot
ReplyDelete