Croatia to conclude aviation aid contracts


The Croatian government is set to distribute aid to the country’s aviation sector in the coming days after the European Commission gave its approval for the state to provide 45.4 million euros in the form of subsidised interest rates on loans. Both airports and airlines can benefit from the measure, but the funds will be limited to those located in Northern Croatia and the city of Zagreb. Final loan agreements must be concluded between the government and relevant stakeholders by the end of the month at the latest. “The measure is aimed at supporting the companies operating in the civil aviation sector so that they can preserve the continuity of their economic activity. The beneficiaries of the measure are large enterprises active in the civil aviation sector impacted by the Covid-19 pandemic. These include parties registered in Croatia to perform activities in the following sectors: passenger air transport, freight air transport and support activities for transport”, the Commission said.

Croatian authorities noted that the loan agreements will be accompanied by a security package which could include pledges on movable and fixed assets, company promissory notes and debenture bonds. “The objective of the measure is to provide immediate liquidity in the form of loans to undertakings operating in the civil aviation sector”, it noted. Under the terms of the financial assistance, a beneficiary may benefit in parallel from multiple support schemes, paving the way for Croatia Airlines, which had already received state aid to mitigate the impacts of the pandemic, to receive additional funds. Ryanair is still challenging an earlier eleven-million-euro cash injection into Croatia Airlines, which was approved by the Commission. The Croatian carrier’s Supervisory Board will today approve to carryforward the company’s 38-million-euro loss from 2021 into future years.

Once the contracts are finalised, the Croatian government must publish relevant information on each individual aid granted within twelve months from the moment of granting. In its conclusions on the matter, the European Commission noted, “The Commission therefore considers that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State since it meets all the relevant conditions. The Commission has accordingly decided not to raise objections to the aid on the grounds that it is compatible with the internal market of the Treaty on the Functioning of the European Union”.



Comments

  1. Anonymous09:02

    Can someone explain to me as to why they only companies from North Croatia and Zagreb can get the aid? How odd.

    ReplyDelete
    Replies
    1. Anonymous09:03

      I guess so they wouldn't have to give funds to coastal airports?

      Delete
    2. Anonymous09:59

      But why??

      Delete
    3. Anonymous10:05

      Makes no sense

      Delete
    4. Anonymous10:05

      Because they want to secure maximum funding for Croatia Airlines.

      Delete
    5. Anonymous10:07

      Because coastal airports in Dalmacia usually report profit, even last year (imagine their accounting practices).

      Delete
  2. Anonymous09:04

    99% of this money will be going to one company.

    ReplyDelete
    Replies
    1. Anonymous09:05

      Indeed

      Delete
    2. Anonymous09:08

      Good. They need all the help they can get.

      Delete
    3. Anonymous09:09

      It will be interesting to see if Trade Air gets any money.

      Delete
    4. Anonymous09:59

      And other airlines like ETF and Fly Air41.

      Delete
    5. Anonymous10:15

      Is ETF registered in Zagreb or Dubrovnik?

      Delete
    6. Anonymous10:29

      Headquartered in Zagreb.

      Delete
  3. Anonymous09:06

    Does this have to be paid back?

    ReplyDelete
    Replies
    1. Anonymous09:07

      Yes it's a loan. It says so in the first sentence.

      Delete
    2. Anonymous09:07

      Within 6 years.

      Delete
    3. Anonymous09:58

      Good luck with that.

      Delete
  4. Anonymous09:08

    What happened to 33 mil EUR given as "loan" to OU before pandemic?

    ReplyDelete
    Replies
    1. Anonymous09:10

      They have to pay it back next year I believe.

      Delete
  5. Anonymous09:08

    This won't be enough.

    ReplyDelete
  6. Anonymous09:09

    Add to that new PSO funding which will be larger than the previous one.

    ReplyDelete
    Replies
    1. Anonymous09:12

      Where did you get an info that it will be larger?

      Delete
    2. Anonymous09:58

      Well there is an additional route in the PSO so it will certainly be bigger than before.

      Delete
  7. Anonymous09:11

    OU has received quite a lot of cash over the years, either from direct injection by the government (€100 million was the first post-EU one) and then there was the income that came from selling family valuables such as Pleso prevoz or LHR slots. None of these were used to make OU more competitive, just to maintain status quo and that's the biggest problem here.

    ReplyDelete
  8. Anonymous09:13

    So pretty much they will get around 75mio in 2 years? Where will the money go?

    ReplyDelete
    Replies
    1. Anonymous09:24

      That's the problem. It goes on daily liquidity matters like wages. Not into development.

      Delete
  9. Anonymous09:21

    I really hope that this money will be strictly monitored like it says in the article. The last restructuring was an absolute failure and those 106 million were obviously not used in the way they were supposed to.

    ReplyDelete
  10. Anonymous09:21

    The state owns the company and wants to invest. Seems normal to me.

    ReplyDelete
    Replies
    1. Anonymous09:24

      That's not how it works.

      Delete
    2. Anonymous09:37

      ^ what do you mean?

      Delete
    3. Anonymous11:49

      The problem is that airlines operate in a free European market, and you can expect that a privately owned airlines, that need to cover their expenses on their own (and make profit in the long term), aren't very happy about governments financing loss-making competition who is trying to undercut them.

      Delete
    4. Investing in healthy subject, yes, by all means. But this is not investing. This is wasting of tax payers money to cover huuuuge losses made by unhealthy, politically driven and apparatchik run impotent insignificant regional feeder full of Uhljebs, incompetence, crime and corruption

      Delete
  11. Anonymous09:23

    Letting OU go bust would cost the government much more.

    ReplyDelete
    Replies
    1. Anonymous09:29

      +1

      Delete
    2. Nobody here wants OU to go bust. We want results for billions already wasted. The sad part is those accusing others to want OU go bust are not aware it will go bust this way, sooner or later, same as Adria did

      Delete
  12. Anonymous09:28

    Very interested to see who gets the money.

    ReplyDelete
  13. Anonymous09:28

    Will ZAG also get money from this aid?

    ReplyDelete
    Replies
    1. Anonymous09:34

      They really shouldn't. They made the decision to go to bed with Ryanair which isn't paying for half of the services all other airline's are paying for and are hurting OU.

      Delete
  14. Anonymous09:50

    Bravo EU

    ReplyDelete
  15. Anonymous09:51

    Croatian Government knows what they're doing.

    ReplyDelete
    Replies
    1. cut the BS. You're not even funny as poster before said, you are pathetic and annoying

      Delete
    2. Anonymous14:50

      Acting like a baby when things don't go your way, people have different opinions, be respectful.

      Delete
    3. Anonymous17:58

      Rijeka, in that field you are the absolute champion!

      Delete
    4. I will not be respectful. Fully convicted criminal organization, absolute Champion in crime and corruption, deserves no respect. And those advocating them need propper word for their advocating. BS.

      Delete
  16. Anonymous09:51

    Hope it works out

    ReplyDelete
    Replies
    1. Anonymous09:52

      Don't worry. Croatia Airlines will be around for a loooong time.

      Delete
    2. Anonymous10:08

      Malev thought the same.

      Delete
    3. Anonymous10:35

      Croatia Airlines will get as much money as they want, and no EU will stop this, especially for the next 2 years since now COVID-19 aid is betting given to all airlines from all EU governments.

      Delete
    4. Sto se babi tilo to joj se i snilo. Uhljebima pogotovo. But Croatia Airlines as it is today will not be around even for a short time, let alone loooong

      Delete
  17. Anonymous09:52

    Good news. OU gets aid and doesn't get punished for it.

    ReplyDelete
    Replies
    1. Anonymous10:00

      Until one day the EU pulls the plug like it did with many airlines that seemed untouchablle.

      Delete
  18. Anonymous09:52

    Maybe they can open a base in LJU now.

    ReplyDelete
    Replies
    1. Anonymous09:55

      Are you serious? They got aid to cover covid losses and you expect them to open a base in Ljubljana??

      Delete
    2. Anonymous10:00

      Has they done it two years ago when Adria went bankrupt they would have ruled the Slovenian market by now.

      Delete
    3. Anonymous00:32

      The question is would it have been profitable.

      Delete
  19. Anonymous09:53

    What sucks is that they are wasting taxpayer money for what? To get more of the same?

    ReplyDelete
    Replies
    1. Anonymous09:55

      Much more money would be lost if they went belly up

      Delete
    2. Anonymous09:56

      One way or another it's the taxpayers who will foot the bill.

      Delete
  20. Anonymous09:54

    I'm really interested to see which direction OU takes in the future. The pre-Covid expansion with a lot of new routes has been wiped out over night. None of the routes launched in the last 5 years have returned expect for Barcelona. The A320neos are being cancelled and the privatization has been cancelled. So it will be interesting to see what the future holds for this company

    ReplyDelete
    Replies
    1. Anonymous09:55

      Ask BCG

      Delete
    2. Anonymous09:57

      Agree, a lot of unknowns.

      Delete
  21. Anonymous09:56

    Hope it won't take the full 12 months until they reveal who they gave the money too.

    ReplyDelete
  22. Anonymous09:57

    Croatia Airlines was in problems before this pandemic... The EU is throwing money down the toilet trying to help this national airline.. this airline is operated by thieves.

    ReplyDelete
  23. Anonymous10:04

    What does it mean when you carry over your loss from previous year?

    ReplyDelete
  24. Anonymous10:18

    Rupa bez dna.

    ReplyDelete
  25. Anonymous10:36

    Are there any conditions for all this aid for OU?

    ReplyDelete
    Replies
    1. Anonymous11:02

      No

      Delete
    2. Anonymous11:04

      Most countries have made certain requests from their airlines in return for aid.

      Delete
  26. Anonymous11:04

    The amount of money OU needs just to cover their operations is getting bigger and bigger.

    ReplyDelete
  27. Anonymous11:05

    Corona is a nice excuse to continue with state control and pumping tax payers money in this airline. It's good Ryanair will now be monitoring everything.

    ReplyDelete
  28. Anonymous11:54

    Last time arounf OU was supposed to utilise the aid 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.

    ReplyDelete
  29. Anonymous12:05

    Is it true that OU will provide wetlease service to JU on "power by the hour terms " this summer? I heard a rummor only...

    ReplyDelete
  30. Anonymous12:16

    Compared to what other airlines got around Europe, this is nothing.

    ReplyDelete
    Replies
    1. Other airlines in Europe are operating fleets of hundred plus jets, widebody included, not half dozen turboprops and half dozen old 320f, plus are not run and controlled by top range thieves

      Delete
    2. Anonymous15:03

      Mudrac!, you know everything, why don't you run for politics and make a change instead of hanging over this blog site night and day for YEARS, couch hercules, I can imagine how it is to live with you...get a life dude....

      Delete
    3. Anonymous18:23

      Well he said he is a former OU staff member so you cannot expect less stuff. Also, in a democratic world everyone has the right to criticise.

      Delete
    4. Anonymous19:34

      Mudrac from Rijeka has been flooding this site with the same rhetoric EVERY single day for the past 3+ years..... so one is an opinion, and one is trolling.....

      All are going crazy that Cro gvmt' is sinking money into THEIR company, and EU is OK with this!!

      The Croatian government will keep on doing this indefinitely, because to the dismay of the haters, Croatia Airlines will NEVER GO BANKRUPT, just like Alitalia, Air France, Iberia, it carries too much weight for Croatian tourism industry, 50m per year is peanuts, its just a Croatia thing, and live with it!

      Delete
    5. Kradeze botovi na aparatima, popljackali ste i unistili sve sto se moglo, raselili ste Hrvatsku i od nekada jedne od najbogatijih i najrazvijenijih regija Centralne i Juzne Europe napravili nakaradni Uhljebistan. Platit cete za zlocine, kad tad, zato se toliko i pjenite kad cujete istinu, jer vas je strah onoga sto dolazi. A ja cu vam istinu govoriti svakog dana, desetostruko, sto se vise pjenite



      Delete
    6. Anonymous21:54

      Ble ble, mudrac again at work!

      Delete
    7. Anonymous23:03

      @12.16
      You should also compare the aid proportionate to the size of the company.

      Delete
    8. Anonymous23:52

      And that many of those airlines were profitable before Covid...

      Delete
    9. Anonymous00:06

      ...unlike OU

      Delete
  31. Anonymous15:12

    What is the average fleet age?

    ReplyDelete
    Replies
    1. Anonymous00:06

      16.7 years

      Delete
    2. Anonymous00:32

      The Airbuses are over 20

      Delete
  32. Anonymous20:02

    I see this as compensation for OU for doing their job in favor of Lufthansa

    ReplyDelete
    Replies
    1. Very good observation. Kokosari in service of the Cartel

      Delete
  33. Anonymous23:04

    How realistic is the option to take the necessary money away from every Croatian citizen and taxpayer and inject it into airline and to give every taxpayer share in airline? Then after the airline is stabilized the citizens would be allowed to sell or buy more of their shares to anyone interested and get at least part of their money back?

    ReplyDelete
    Replies
    1. With all due respect, you obviously have no clue about Kradeze's model of criminal "privatization" and the fact that Croatia had more elements of market economy during the last years of Yugoslavia than today

      Delete
  34. Anonymous00:07

    Bring back Kucko

    ReplyDelete
    Replies
    1. Anonymous00:31

      Urm, no thanks!

      Delete
    2. It's not about which one of them to bring back, but which one of them to bring to the jail

      Delete

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