The Croatian Ministry for Sea, Transport and Infrastructure has defended a delay in awarding contracts for domestic Public Service Obligation (PSO) flights, noting there has been interest from a number of airlines, which has resulted in additional screening and reviews. The four-year contracts, which provide European Union funds for the upkeep of domestic services deemed commercially unprofitable, were to come into force on May 1. However, the state has not even selected the operating carriers for the twelve routes despite holding a tender back in December of last year. As a result, Croatia’s Trade Air, which has maintained a considerable number of PSO flights, suspended all of its domestic operations at the start of the month. Croatia Airlines, which is also the beneficiary of PSO subsidies, has continued its domestic services, albeit without EU funding.
Commenting on the matter, the Ministry said, “Consultations have been held with a number of interested bidders. While processing each offer, the need arised for a more detailed analysis of some of the bids received, especially due to supply chain difficulties in the industry caused by the Covid-19 pandemic (such as a lack of crew and capacity, variable costs, etc.)”. It added, “Bearing in mind the additional screening and consultations, as well as the extra time required to prepare the necessary documentation, there have been adjustments made to the planned dynamic of the tender. All bidders have been informed of these circumstances and we do not expect for this delay to have a significant impact on the reduction of existing domestic operations until the selection process is completed”. The Ministry gave no hint as to when the process may be finalised, although it is believed the contracts could be signed by the end of the month.
Croatia Airlines and Trade Air are the only two carriers to have previously won contracts to operate subsidised domestic flights in Croatia, although any airline registered within the European Union that meets the tender criteria can apply. It is unknown whether other carriers had previously taken part in the tenders. Due to the Covid-19 pandemic, a number of smaller airlines have started applying for PSO contracts across the continent. Furthermore, low cost carrier Ryanair said last year it would consider taking part in tender procedures in Croatia after evaluating the terms and conditions. Due to Trade Air’s domestic service suspensions, Rijeka Airport no longer has any domestic flights.
How is this okay to TradeAir who even offered to buy atr 42 for domestic flights? Imagine the opposite - tradeair not paying taxes in time because they found a better accounting firm and are waiting for them to make new paperwork . It shouldn't work like that
ReplyDelete+1
DeleteI want to fly Rijeka to Grobnik...
DeleteEveryone should pay so that a few select would fly...
The subsidies support the local economy, bring jobs and investment.
DeleteMake way for Ryanair!
ReplyDeleteFingers crossed.
DeleteHow yes no
DeleteNo Thank you! It's about time the Croatian government told Ryanair where to go!
DeleteTheir explanation is complete rubbish. So they delayed the selection because some airlines are disorganized and fired too many people during the pandemic and now have to cancel flights because of it.
ReplyDeleteI doubt that's the actual reason. It is probably down to the ministry's disorganization.
DeleteCompletely agree. Their explanation is shocking.
DeleteExactly it's just a lame excuse which probably does not have to do much with reality.
DeleteZagreb - Losinj
DeleteI would love to see which airlines are in the running.
ReplyDeleteI would be surprised if it is a lot of random small regional European airlines.
Delete*wouldn't be surprised
DeleteActually I think it might be airlines like ETF, FlyAir 41 and even Silver Airways.
DeleteOr it's just a made up excuse by the government to justify them not doing anything on time.
Delete@9.39
DeleteYou mean Silver Air? They were the only non Croatian airline flying domestic flights (in summer), before Covid.
Which domestic routes did they fly?
DeleteZagreb - Losinj
DeleteI just don't see the government awarding these contracts to any foreign airlines but let's see.
ReplyDelete+1
DeleteWell, it's EU, they must provide the contract based on the best offer and not nationality.
DeleteThey are not foreign, they are EU airline that wants to fly between two points in EU member state so that makes them perfectly domestic if that term has any sense and meaning in EU.
DeleteSome people fail to realise the Croatian domestic market is now the EU.
DeletePeople often forget that there is a single aviation market in the EU.
DeleteSingle market or not, Croatian government will always give preferential treatment to local companies.
DeleteThe government should be putting Croatian companies first. Brussels cares very little about Croatia, apart from all the taxes it steals from the Croatian taxpayer!
Delete"we do not expect for this delay to have a significant impact"
ReplyDeleteAn airline had to suspend all scheduled flights because of their unprofessionalism.
Hahaha. That was my thought too when I read their statement.
DeleteI'm surprised that bidders have not been published for past PSO tenders.
ReplyDeleteIt's probably treated as a business secret.
DeleteOther EU countries don't announce the bidders either.
DeletePSO for DBV is really not needed especially in the summer. Artificial way of supporting loss making airline.
ReplyDeleteI agree it is not needed. Most of OU's passengers to DBV and SPU in summer are international transfers via Zagreb anyway.
DeleteIt is probably not needed even in winter, the loads are not that bad.
DeleteRyanair is flying domestic routes in Bulgaria. They could do the same in Croatia.
ReplyDeleteIf this happens it would be the final nail in the coffin for OU.
DeleteIt would not be great news for Trade Air either.
DeleteThey would only have themselves to blame.
DeleteWhat has Trade Air done wrong exactly?
DeleteRyanair flies domestic in many countries. Italy, Spain, Poland, UK, Portugal...
DeleteRomania too.
DeleteLCCs in Europe fly on many domestic routes so I don't see why they wouldn't fly on Croatian ones.
DeleteIt would be fantastic for the public and tourism if some new airlines take over the PSO routes. Many of these PSO routes are overpriced. Especially ZAG-DBV and ZAG-SPU.
ReplyDeleteI think Ryanair could only make it work on Zagreb-Dubrovnik and Zagreb-Split routes. The others no chance with the B737 or A320. Most other flights even on Dash 8s are half empty. That's why they are PSO.
ReplyDeleteThe issue is that Ryanair would have to fill these aircraft several times per day, and not just 2 times per week which is the frequency on most of their flights from ZAG.
DeleteThese PSO contracts are pure exaggeration and money wasting.
ReplyDeleteIts Croatian money for the strategic Croatian flagship airline.
DeleteIt's actually EU money.
DeleteYes but Croatian taxpayers also contribute for PSOs in other EU member states.
DeleteStrategic Croatian flagship airline for Uhljebs, fanboys, Mafiosos, Adeze bots and brainwashed chauvinists, or in reality insignificant tiny LH a.skisser and feeder full of crime, corruption, nepotism, incompetence and inertness and World Champion in missed opportunities and wasted potentials, which for decades already exists on expense of croatian taxpayers
DeleteCroatia airlines : Oh Dear........ something else pozdrav??!!!
DeletePozdrav just cone here to Canada. First class uhljebs here. Politicians giving themselves hefty raises, while our bus system,in the city I am in is falling apart .The money each year that we receive yo repair our bases, garage facilities etc just disappears.Meanwhile there are holes in the roof of the garage where we park the busses, and when it rains just goes into the garage. Streets are in poor shape. Union leaders steeling money and so on. You think it's just bad in Croatia. Come over here. Corruption at its best.
DeleteSo, I should keep my mouth shut, on the ex-yu aviation blog, about national treason in Croatia Airlines, because of an isolated case of alleged corruption in bus company in Canada, posted by an Anonymous. Nice try! To which I can only say LOL ☺
DeleteMaybe you should speak to the right people and nit just complain on a portal. Hi to the media, force politicians to give straight answers on media outlets. Don't just complain on an aviation sight. You really think that the people involved read these. They might, but they also laugh, because they know you won't ask them the tough questions in person.
DeleteAnd how dare you saying I am only complaining on this "sight" (site?),without knowing the first thing about me? How do you know I didn't talk to the D. A. and investigating judge? How do you know I didn't try with media? You must be really shortsighted, I will not use stronger word, if you believe the law in Croatia is equal for all, because it is not. And if you think you can force Mafia politicians to give straight answers on media, than you are much much more naive than I am. Cheers!
DeleteI really do wish OU would sue you for libel pozdrav. All you do is whinge.
DeleteYou 've just said everything - who you actually are, why are you here, and what your state of mind is - if you think one speaking publicly of crime in corruption should be prosecuted instead those engaged in crime and corruption - no additional comment is needed, and proves what I claim all the time - that Croatia went back to 1948 with Adeze "leading" it - over the edge
DeleteWell do something about it then!!
DeletePozdrav! You are not Croatian, so stop moaning about their national carrier. It is of no concern to you!
DeleteSo, only locals can whine about OU and their incompetence, not to say criminal activities? How about you not telling people what to do and say?
DeleteAn. 09.13 is just another proof of how right I am saying Adeze is taking us back to 18 th century, mentally and all other ways, rotten and corrupted OU included, with full support of pupovac trade ltd 😃
DeleteThey should not allow non Croatian registered airlines to fly these routes.
ReplyDelete^ Why exactly?
DeleteAirlines registered outside of Croatia should not exploit a local domestic market which is not large and can't sustain more than one airline on each route.
Deletelol
DeleteNo one is stopping Croatia Airlines from starting domestic flights within Ireland or somewhere else.
Deletewhy should they not give it to a foreign airline? If Ryanair (for example) can fly Zagreb-Split better for cheaper why should they not be able to? This sort of nationalism is mind boggling to me. Nobody is forcing you to fly airlines other than Croatian but stop forcing the rest of your countrymen to only have Croatian as an option.
DeleteCovid can't be an excuse as to why the government has not awarded the PSO contracts. The process should not take more than 6 months.
ReplyDeleteCovid seems to be an excuse for everything nowadays everywhere.
DeleteThe world travel situation is very fluid due to pandemic/political issues.. I'm not surprised this process is taking longer than expected.
DeleteEU and Croatia should invest that money in Croatian railways rather than burning millions of € of subsidies on short flights with poor loads such as Zag-Osi. The trend in Western Europe is to replace those flights by train connections.
ReplyDeleteAgreed. Especially for relatively short distances like Osijek-Zagreb, or Zagreb-Rijeka.
DeleteThat sounds like a great idea.
DeleteSerbia did a great job in this regard by opening the speed-train link between Belgrade and Novi Sad, which finally shelved the silly plans of having an airport in NS. Now you can get from one city to the other within 30 min.
DeleteThe train does not stop at the airport - and the express one not even near to it.
DeleteDubrovnik - Rijeka and Split - Rijeka are needed because alternative is at least 10-13 hours of car ride.
DeleteNot saying air link RJK-SPU, or even more DBV, are not needed, on the contrary, use it personally here and there, but Rijeka-Split by car is 4-5 hours door to door, what 13 hours you talk about?
DeleteAnd this 4-5 is via Zuta Lokva, not using highway all the way, and with coffee break, and with average allowed speed. It can easily be 3 hours, nonstop and bit faster
DeleteI'm talking about public transportation. Have you ever tried it? It's a future and it will be more and more. Rijeka - Split at least 9 hours, add 4-5 to Dubrovnik.
DeleteIt should have been "bus ride" instead of "car ride". My mistake. Anyway, we are talking about transporting more people at once. Car isn't the most sustainable option at all and it's certainly the most expensive.
DeleteTrue. Buses use old "magistrala" and stop in every village. Rijeka to Split is 8-9 hours by bus and Rijeka to Dubrovnik 12-13. And it's even worse from Pula, it's two hours more. So, talking buses, yes, you are right
DeleteIn the end, it's going to be Croatia Aairlines and Trade Air again.
ReplyDeleteI think ryanaur wants to kill croatia airlines and take over their market. :(
ReplyDeleteIt won't happen. The government will always be there to protect OU.
DeletePSO in Croatia is used exactly for the purpose it is intended for. It connects the poorest part of the country with its rest to enable it to grow, bacause there is no way for carriers to make money there.
ReplyDeleteDubrovnik and Zagreb are poor?
DeleteLast time I checked Rijeka wasn't poor either.
DeleteOsijek is.
DeleteThanks to Adeze which is successfully completing "spaljena zemlja" strategy. With all the flatlands, Slavonija and Osijek could have produced food not only for Croatia but for half Europe, and could have been at least as rich as Zagreb or Dubrovnik. Instead, like in aviation, zero strategy for agriculture, theft and corruption in full swing, land is deserted, and people moving to Germany and Ireland. Bravo Rvacka! Zivijo Adeze!
DeleteEven if there was a lot of interest (which I doubt), how does that justify needing over 6 months to select the best bids?
ReplyDeleteBe certain that what the government said is a lie.
DeleteIf it is true what the government is saying, that is great news.
ReplyDeleteIt's not great that the government has concluded the contracts.
DeleteWe could get some interesting airline operating PSO.
ReplyDeleteThe way things are currently going, no one will be operating them.
DeleteOr OU will operate all of them.
DeleteNeradnici
ReplyDeleteWhat happened to ACI Air? It will be very nice if they start.
ReplyDeleteDoesn't look as if they will manage to lift off this year. Or maybe it depends on these PSOs
DeleteI hope it works out. It is a great idea.
DeleteProbably there is a cheaper offer from some other airlines than OU. Now the government needs to find a way how to leave OU in the game...
ReplyDeleteThis is my thought too. Everything is telling me that this whole delay is primarily due to Croatia Airlines.
DeleteWhy is there no flight from Rijeka to Grobnik.
ReplyDeleteWe could make those 99.999999% of taxpayers pay for those 7 a year that want to fly on this route.
DeleteWe should offer two flights a day at least
The only airline I know that could have applied and is having staffing issues as the government says is Ryanair.
ReplyDeleteA new season of Televisa Presenta, following the bankruptcy of Adria Airways.
ReplyDeleteCroatovanje from the ministry.
ReplyDelete