Croatia Airlines eyes single-type fleet


Croatia Airlines is considering operating a single-type fleet as part of its post-Covid strategy which would include the replacement of both its Airbus and Dash 8 Q400 aircraft. Both Airbus, with its A220 jet, and Embraer, with its E2 family, are courting an order from the Croatian carrier. The Brazilian plane manufacturer believes it has the solution to replace both Croatia Airlines’ smaller Q400 turboprops, which have the capacity to seat 76 passengers, as well as the larger Airbuses which carry between 144 and 176 travellers. Speaking to EX-YU Aviation News, Embraer’s Vice President for Sales and Marketing, Cesar Pereira, said, “Croatia Airlines is considering a complete fleet renewal, including also their Q400 fleet, targeting a single type of fleet like the E2 family. This would allow Croatia Airlines to significantly boost operational efficiency and lower costs, by reducing complexities that airlines typically have if they operate more than one type. This includes areas such as crew training, scheduling, maintenance, and operations. The overall result of flying a single-type fleet is lower costs and improving the airline’s financial performance”.

Commenting in more detail on why the Croatian carrier should opt for the Embraer jets and how it would fit into the airline's post-pandemic recovery, Mr Pereira noted, “The E2 family is the most competitive regional aviation aircraft. They are the most economic, quiet, and sustainable jet family in the segment and builds on the heritage of the worldwide best-selling E1 generation, operating with the leading airlines on all continents. For the E2 family, we are incorporating major enhancements, such as a new engine, a highly efficient wing and a new full fly-by-wire system all tailored to reduce fuel burn and as such improve airline profitability, whilst delivering greatly to achieve future sustainability targets our industry has set”. He added, “The E2 family is comprised of three family members, from ninety to 146 seats, which will offer Croatia Airlines great flexibility to operate the ideal capacity on their future network. There will be a long recovery period ahead until we reach the passenger levels of 2019 and airlines will “right-size” their fleets to the new tomorrow. The recent fourth pandemic wave shows that airlines will have to stay flexible more than ever, and the flexibility of the E2 family provides a natural hedge versus external factors and counters the strong seasonality of the Southeast European market. Lastly, Embraer is in advanced stages of launching a next generation turboprop aircraft, built on the design and comfort of the E2. Once launched this aircraft could be a formidable contender for Croatia Airlines on thinner and shorter markets, where the Q400 is operating today. The E175-E2 and next-gen TP are additional safety nets for airlines in case the market recovery is longer than expected. It’s all about flexibility”. 

Croatia Airlines is now awaiting for its owner - the Croatian government - to approve its post-Covid strategy, which has been developed in collaboration with the Boston Consulting Group, in order to implement the proposed changes over the coming years. The strategy, which has not been made public, is believed to include the acquisition of up to fifteen aircraft. The carrier has dubbed its upcoming transformation as a “strategy for success”, which has been driven by the ongoing pandemic. “The pandemic has seen a sudden and drastic impact on the entire aviation industry affecting passengers, airlines and of course also the aircraft manufacturers”, Mr Pereira said. “What has helped Embraer going through the crisis and now emerging stronger is the focus on efficiency gains projects and the diversified portfolio of quality, and high-tech products and services we can offer our different customer segments”, he added.



Comments

  1. Anonymous09:03

    Interesting but risky in my opinion. What will the do without the turboprops in winter?

    ReplyDelete
    Replies
    1. Anonymous09:09

      I had the same thought, especially when they operate more flights with the Dash than with the Airbus planes now.

      Delete
    2. Anonymous09:11

      It will likely result in a lot of savings. Having a one type fleet carries a lot of positives. I assume part of this post covid strategy is actually increasing passenger numbers, improving load factors and reducing seasonality.

      Delete
    3. Anonymous09:13

      They are not going to replace entire fleet over night. It would be a process taking several years and getting rid of the Dash planes would probably be the last step.

      Delete
    4. Anonymous09:31

      But even so, and let's say they choose Embraer with the smallest capacity of 90 seats, what are you going to do with those 90 seats on a flight like Osijek - Split.

      Delete
    5. Anonymous09:42

      True, in normal years their average LF across network is just above 65%.

      Delete
    6. Anonymous09:50

      Maybe they expect to be purchase by Aegean which will eventually provide them with turboprops :D

      Delete
    7. Anonymous10:39

      If they take something in between q400 and a319 basically they are taking worst of both spectrum since OU is highly seasonal airline. Q400 was good horse and simply taking something bigger would only mean less frequencies for OU and more potential for competition. E175 e2 is too big for winter ops. while e195e2 is too small for top season traffic. Basically there is no good decision and only ATR 72-600 would only be more economic solution for turbo prop ops, e175e2 is definitely overkill.

      Delete
    8. gti15011:11

      ''But even so, and let's say they choose Embraer with the smallest capacity of 90 seats, what are you going to do with those 90 seats on a flight like Osijek - Split.''

      Osijek-Split line as well as Dbv-Osijek has full capacity over the summer time. In the end, the difference between 76 (Dash) and 90 is not huge.....

      Delete
    9. I would expect them to outsource those flights which need smaller planes. Such as TradeAir doing Osijek-Zagreb flights.

      Delete
  2. Anonymous09:05

    If they decide to replace entire fleet than Embraer makes more sense as they have planes with 90 seats while the smallest version of the A220 has minimum 100 seats.

    ReplyDelete
    Replies
    1. Danijel09:09

      Apsolutley agree with you. Whati is price diference between a220 and Embraer with 120 seats?

      Delete
    2. Anonymous09:21

      The A220 is around 30 million USD more expensive per unit.

      Delete
  3. Anonymous09:05

    Bravo Hrvatska!

    ReplyDelete
  4. Anonymous09:05

    Why replace Q400s? They are not that old.

    ReplyDelete
    Replies
    1. Anonymous09:08

      Didn't OU have a lot of issues with them?

      Delete
    2. All Airlines who operate the Q400 have lots of issues with them. They are an excellent aircraft in terms of speed and fuel efficiency but had a lot of trouble with the Landing gear and maintenance takes longer then on an Airbus.q

      Delete
    3. Anonymous09:35

      Also isn't Bombardier discontinuing support for them? I remember reading it somewhere.

      Delete
    4. Anonymous09:40

      SAS stopped using the planes after landing gear issues

      Delete
    5. Anonymous09:50

      Aegean's regional airline Olympic is also moving from mixed ATR/Dash fleet to an all ATR fleet.

      Delete
  5. Anonymous09:09

    I think OU, like JU, is missing a plane in between the Q400 and Airbus.

    ReplyDelete
  6. And those airplanes are going to be paid from???.......

    ReplyDelete
    Replies
    1. Anonymous09:12

      You take out loans with the state being you guarantor.

      Delete
    2. Anonymous09:28

      Well it seems OU is confident it has the finances for it.

      Delete
    3. Anonymous09:29

      Oh boy, RyanAir is going to have a field day if the Croatian state gives guarantees to OU.

      Delete
    4. Anonymous09:32

      I don't think it's against EU rules.

      Delete
    5. Anonymous10:02

      Of course it is. If only one airline can get state loan guarantees, how is it fair to all the other airlines on the market?

      Delete
    6. Has Ryan ever applied for such guarantees? No. What is the probability they will seek loan guarantees from the Croatian Govt? None. What is the point of this whole discussion? Unclear.

      Delete
  7. Anonymous09:14

    My theory is that in soon these Bombardiers actually become OU property. Remember, they were purchased through financial lease. And then OU sells them and perhaps uses the money for new aircraft.

    ReplyDelete
    Replies
    1. Anonymous09:28

      "Financial lease" doesn't mean you become the owner of the aircraft, on the contrary.

      Delete
    2. Anonymous09:34

      Isn't it that you pay off the aircraft in installments and after it is paid off you get ownership of the plane?

      Delete
    3. Anonymous15:55

      Depends if you have a residual or not. You could for example decide to pay lease on 50% value of the aircraft over 10 years (plus interest), the 50% is the residual. After the 10 years you either have the option of renewing the lease on the other 50%, buying out the 50% and take full ownership or forfeiting you ownership if you chose to not pay the residual or renew the lease.

      Delete
  8. Anonymous09:16

    How old are the Dash planes?

    ReplyDelete
    Replies
    1. Anonymous09:18

      On average, 12 years.

      Delete
    2. Anonymous09:34

      They still have quite a bit of time.

      Delete
  9. Anonymous09:20

    They should focus on replacing Airbuses rather than Q400.

    ReplyDelete
    Replies
    1. Anonymous09:28

      Well, they will focus on replacing both.

      Delete
  10. Anonymous09:22

    In this case, Embraer has the upper hand over Airbus.

    ReplyDelete
  11. Anonymous09:23

    I agree too that EMB planes would than be more sensible decision because of better capacity, But this is OU - a state run airline that chose Airbus planes over Boieng in the 90s so Croatia could get in the EU's good books. I foresee that for political reasons, they will again choose Airbus.

    ReplyDelete
    Replies
    1. Anonymous09:29

      Unfortunately, I also think this is the likely outcome.

      Delete
  12. Anonymous09:24

    Is OU Technics certified for Embraer planes?

    ReplyDelete
    Replies
    1. Anonymous09:29

      I don't think so but as far as I'm aware they are not certifies for the A220s either.

      Delete
    2. Anonymous10:14

      There's plenty of time for them to get certification required for new type (whatever that may be), between the order and arrival of first aircraft.

      Delete
  13. Anonymous09:40

    Whatever they do it's good to see Croatia Airlines is finally waking up and I hope for the best.

    ReplyDelete
  14. Anonymous09:41

    When will they make an actual order for planes?

    ReplyDelete
  15. Anonymous09:42

    To me it makes sense having a one type fleet. Even if they order new planes tomorrow it will take several years for them to be delivered.

    ReplyDelete
  16. notLufthansa09:43

    again, product of some thinktanks, sitting somewhere in an office, sans any connection to real world and aviation. They just move the numbers and buzzwords arround. Yes, jets are perfect for SPU-ZAG for instance, or ZAG-VIE, ZAG-ZHR etc...NOT! ATR is much better option than DHC8....and the jets - it depends what kind of operations Croatia is willing to support - mix of regular scheduled flights in summer and wet lease of spare capacity (which is not so easy and secure), or smaller jet fleet.

    ReplyDelete
  17. Anonymous09:45

    According to some rumors the final fleet will be 14 x A220.

    ReplyDelete
    Replies
    1. Anonymous09:52

      The A220-100 or A220-300?

      Delete
    2. Anonymous09:55

      No info on that.

      Delete
    3. Anonymous12:37

      I don't see how anyone sane of mind can believe that OU can finance the purchase of 14 aircraft.

      Delete
    4. Anonymous19:43

      They are paying leasing for all the dashes....they will just change one leasing for another....nobody say that they will buy all the aircraft

      Delete
    5. Of course, DOUBLE leasing must go on. Otherwise poor Ivan & Tena are left with no additional income, and they could starve of hunger. Compassionate people of Croatia will not let it happen

      Delete
  18. Anonymous09:47

    They are applying the Air Baltic model by using 1 sole aircraft type and it really makes sense at this stage. Why aspire for long haul and pump millions by the government just like other airlines artificially do...

    ReplyDelete
    Replies
    1. Anonymous09:52

      Does Air Baltic operate just one variant of the A220 or both?

      Delete
    2. Anonymous09:54

      Only -300.

      Delete
    3. Anonymous09:58

      Only 1: the A220-300 and they got rid of their Dashes I think because of the landing gear issues. But it's more logical and cheaper having 1 aircraft type.

      Delete
    4. Anonymous11:41

      AirBaltic in 2020: state aid - 250 million euros, loss - 264 million euros.

      Delete
    5. Anonymous11:50

      You can't take 2020 as an indicator. Airlines were hard hit by corona.

      Delete
  19. Anonymous09:57

    Despite Embraer's best efforts I think OU will go for the A220s. But we will see.

    ReplyDelete
  20. Anonymous10:08

    Can't wait for this post Covid strategy to begin. OU needs to wake up and take some action.

    ReplyDelete
    Replies
    1. Anonymous10:11

      Their clock is ticking

      Delete
  21. Anonymous10:08

    Good luck with that...

    ReplyDelete
  22. Anonymous10:09

    This process is moving so slowly. If the government now has to adopt this plan, it probably means that its implementation won't start until summer 2022. By that time, Ryanair will probably announce another 10 routes from Zagreb.

    ReplyDelete
    Replies
    1. Anonymous10:10

      Changing your entire fleet structure is something you don't do over night and something you really have to analyze and thing through properly.

      Delete
  23. Anonymous10:11

    Hope for the best.

    ReplyDelete
  24. Anonymous10:11

    I think this is a positive step. Let's hope for a good outcome.

    ReplyDelete
  25. Anonymous10:12

    Hopefully some sustainable plan can be made to keep the planes fully utilized in winter. Do ACMI perhaps?

    ReplyDelete
    Replies
    1. Anonymous10:25

      They could have done ACMI up until now but they didn't.

      Delete
    2. Anonymous10:26

      Well they are doing ACMI in some way from next month for My Wings three times per week to PRN :)

      Delete
  26. Anonymous10:20

    How long it will take between Croatia Airlines making an order until it received their first plane?

    ReplyDelete
  27. Anonymous10:25

    This may turn out to be a very good decision for Croatia Airlines.

    ReplyDelete
    Replies
    1. Anonymous10:26

      Well it can go only two ways :D good or bad.

      Delete
    2. Anonymous10:27

      Well either way, they are getting new planes.

      Delete
    3. Anonymous10:29

      And they will need lots of money.

      Delete
  28. Anonymous10:27

    My only skepticism is the team that is going to decide on this.

    ReplyDelete
  29. Anonymous10:28

    Let's hope it just doesn't end up like Adria's order for 15 Sukhoi planes.

    ReplyDelete
    Replies
    1. Anonymous11:37

      It won't because they have government support, unlike Adria.

      Delete
  30. Anonymous10:29

    How many Airbuses does Croatia Airlines have in its ownership? I assume they will be sold.

    ReplyDelete
  31. Anonymous10:43

    I see Trade Air taking over their Airbus fleet; they have been extremly successfull in the past years

    ReplyDelete
    Replies
    1. Anonymous11:38

      Possible. They took over a former Fly Bosnia A319.

      Delete
  32. Anonymous11:36

    I believe Air Baltic has had a good experience transitioning to a one type fleet.

    ReplyDelete
  33. Anonymous11:59

    I only wish they this this 3 years ago. It might be late now.

    ReplyDelete
  34. Wrong, wrong and wrong. Country with best geographical position for the Balkans and behind, with enormous transit/transfer potentials, with 4 million emigration /diaspora, with over million tourists from distant markets and several overseas companies operating to Croatia and one of the World 's favourites in tourism, limiting itself voluntarily to feeder role and discussing on which feeder type to choose for the fleet. Sad, angry, disappointed.....

    ReplyDelete
    Replies
    1. Anonymous14:05

      I agree. They should start negotations for A380 order and announce DEL, BKK and JNB asap.

      Delete
    2. Your comment speaks for itself and very much about you. I feel sorry for you as your World ends in Graz and you are so happy and proud for being allowed to take care of the horses of German and Austrian Masters. And I don't mind about it, you are welcome to continue. Please just stop spitting on us who have at least a little bit of pride and criticism for Mafia which destroyed both the country and its airlines, heavily backed and supported by you and the likes

      Delete
    3. There he goes again...

      Delete
    4. You mean Anonymous who LIES constantly about stuff I NEVER suggested? Or you mean me speaking truth again, what triggers him?

      Delete
    5. Anonymous00:57

      triggers both....boooooring like "bravo hrvatska" or the "buy SSJ" anon

      Delete
    6. Well, it's not the same. Both Bravo Hrvatska and buy SSJ are writing something which has absolutely nothing to do with reality. I am writing about reality, sad reality, missed opportunities, wasted potentials, crime and corruption. If you are bored with it, you are welcome to skip reading my posts in the future. But I doubt it was just boredom that made you post. Your first "triggers" says it 😃

      Delete
    7. Anonymous01:24

      instead of reading justified criticism, it would be more interesting to read realistic suggestions for improvement. what would the ideal fleet be, which new markets should be opened up and why. how to deal with the very strong seasonality. use more coastal airports or expand zagreb. which cooperations besides LH do? ...

      Delete
    8. Anonymous02:47

      Im anon 14:05, just revisited now. If you can't understand irony i'll say it like this: How on earth does ordering A220s or Embraers make you a "feeder" airline with so much wasted potential. We're talking about planes that can sit up to 140-150 pax and this guy is telling me that this makes you a feeder. Do you want A380 or what? What you gonna do with more seats in the winter? Yes, Croatia has a big and attractive market but it's highly seasonal and somewhat insignifcant in a wider perspective. World doesn't revolve against ex-yu my friend.

      Delete
    9. Anonymous09:14

      Again returning to SFRJ solution. One legacy carrier and several LCC. Croatia has 3 other company.

      Delete
  35. Anonymous13:07

    No SSJ guy(s) on today's topic?

    ReplyDelete
    Replies
    1. Anonymous14:35

      Well, it's Croatia Airlines not Air Serbia.

      Delete
    2. Anonymous09:26

      It's unrealistic for EU-focused Croatia Airlines to consider a Russian build plane. Air Serbia wandering both worlds (like Yugolsavia) at least has a small chance to get a Russian build plane. Maybe they revive Aviogenex, they operated TU-134 in the past.

      Delete
  36. Anonymous15:36

    Funny how both Airbus and EMB pitched the aircraft in old livery xD

    ReplyDelete
  37. Anonymous15:58

    No Mitsubishi?

    ReplyDelete
  38. They will eat it and they will love it!17:18

    Perfect cake recipe every aviation fan will love:

    - Start with a layer of fantasy such as new E2/A220 fleet for a tired exyu airline
    - Apply a filling of route cancellation reality
    - Add another layer of fantasy order for another worn out exyu airline
    - top it with a frosting of another cold route cancellation reality

    Sprinkle some magical aviation dust and serve to starved fans!

    I can't have enough of this! Can I have another serving please!

    ReplyDelete
    Replies
    1. Anonymous17:31

      I like the layers but where are these cancellations?

      Delete
    2. Anonymous18:02

      Reduction of service, postponement, cancelation etc. Luxair, Eurowings, Wizz air and others.

      Delete
    3. Anonymous18:29

      Okay then, i thought you were refering to the tired exyu airlines.

      Delete
  39. Anonymous19:14

    Rumor is Boeing is being very aggressive there, but doing it quietly and not in the media. Be interesting to watch.

    ReplyDelete
    Replies
    1. Anonymous20:52

      You're missing the bigger picture. There's nothing more to be gained from the US now the visas are gone, Croatia won't pick the Boeings even if they are offered free. Same as the Embraers. The government is totally Eurocentric with the PM being in a pursuit of a high-end position in Brussels. He is advocating deeper integration, Schengen, euro zone, strategic partnership with France and Germany as he must prove Croatia is not Hungary/Poland/New(east)Europe type of country.
      That's why they bought fighter jets from France, that's why the main seaport concession was granted to Dutch instead of Chinese who won the tender. So, it will be Airbus and nobody cares it's in fact Canadian. In politics appearances are more important than facts.

      Delete
    2. Anonymous00:59

      so it is and that is very smart

      Delete

Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.