Croatia Airlines has signed a firm order for six Airbus A220-300 aircraft and will lease an additional nine A220s, taking its total commitment for the type to fifteen. The A220s will replace previous generation aircraft in the company's fleet, reducing operating costs as well as improving environmental efficiency and competitiveness. “Today’s signing of a contract for the purchase of Airbus aircraft is a very special moment for all of us at Croatia Airlines. It marks the beginning of a new period of aviation, a new period in the life of Croatia Airlines, a new period for our passengers, and a new period for Croatia’s tourism and economy as a whole”, Croatia Airlines’ CEO, Jasmin Bajić, said.
Airbus Chief Commercial Officer and Head of International, Christian Scherer, noted, “We are thrilled to add Croatia Airlines as a new A220 customer. The A220 is ideally suited to Croatia's aviation needs, providing operational flexibility and efficiency allowing its airline to pursue its ambition for both regional and international connectivity without compromising on any aspect, be it passenger comfort or trip and seat cost economics”. The airline is expected to take deliveries of the six A220s between 2024 and 2026. No details have been disclosed on the value of the deal.
The A220 is a clean sheet design and the only aircraft purpose-built for the 100 to 150-seat market segment bringing together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest generation GTFengines. The A220 delivers a 50% reduced noise footprint, up to 25% lower fuel burn per seat and CO2 emissions, compared to previous generation aircraft, as well as around 50% lower NOx emissions than industry standards. There are currently more than 230 A220s delivered to sixteen airlines operating on four continents. “The A220 will enable Croatia Airlines to further contribute to the development of tourism in the region, while providing flexibility to right-size their operations”, the European plane manufacturer said.
.gif)
Congratulations!
ReplyDeleteTo Croatian tax payers?
DeleteIt is the taxes from tourists that are funding this. It is worth every Euro cent spent on a decent market leading Airline!
DeleteWhat market is the Airline leading? Only domestic one like Zagreb-Split.
DeleteCompany which is decent market leading airline in your dreams only, is actually humiliated servant and pathetic feeder which produces unbelievable losses and hasn't achieved one single goal it had been created to achieve, and which is kept alive only as a crime and corruption tool and Uhljeb sanctuary for ruling Party
DeleteIt's when people offer their opinion as facts. Typical Balkans mindset.
DeleteMother Lufthansa feeder with pedigree A220
DeleteWill the additional 9 A220s all be the -300 version?
ReplyDeleteIt is not specified and probably so on purpose because they are not sure themselves and will depend on various factors.
DeleteSo the finances seem to have been secured.
ReplyDeleteStill don't get how they are going to finance it will be a great thing for OU, and hopefully a phase of real development.
DeleteThey will get loans, government support, they will sell existing aircraft and they have an old deposit at Airbus.
DeleteThose who think and can put two and two together easily come to the conclusion on how this will be financed. And then, there are those who don't.
DeleteAnd then there are those who think they know what is going on, but don't.
DeleteLoans - no bank in their right mind will issue a loan worth dozens of millions, especially to an unprofitable company
DeleteGovernment support - unfortunately yes
Sell existing aircraft - which ones? The Dash that are all leased or the 20+ year old Airbus??
Deposit at Airbus - that's about 5 million if I remember correctly. That's 100 times not enough.
https://vijesti.hrt.hr/gospodarstvo/drzava-ce-dokapitalizirati-croatia-airlines-s-296-milijuna-kuna-10453913 -- Didn't see it here, not that I read this blog on a regular basis, but Croatian airlines was re-capitalized few days ago with injection of €40 million. Airbus holds around €20 million of Croatia’s money for new Airbus aircraft and the state also injected € 20 million earlier in the year to cover financial holes in the airline, on top of this another €36 million for covid support. Airline will have enough money for new Airbus aircraft as covid support will be paid for 2022 as well, at least €20 million in early 2023 and State will inject further 550 million in 2023 to further re-capitalize national airline. Sale of remaining Airbus A320/319 won’t be necessary but if Airline plans to utilize all A220 fleet, then it might be an option. 5 A320/319 will raise at least €20 million and remaining engines further €30-32 million. Enough money for Croatian Airlines to pay for first 4 A220 300 outright and remaining 2 in instalments over next few years of operation. What caused major headache for Croatian airlines was lease for 6 Q400s which came at €21 million per year no matter what and then cost of operating these aircraft (amortization costs) and increase in fuel. Croatian Airlines was still paying off 5 Airbus aircraft from 2000 till late 2016. With Airbus A220 the costs will be lower as airline will pay majority of money for the new aircraft straight upfront.
DeleteIt would have taken you a total of 1 minute to find that it indeed has been published here weeks ago.
DeleteWell done
ReplyDeletesaid no one
DeleteI won't believe until I see it and the A220 lands in Zagreb.
ReplyDeleteAll A220-300 or also A220-100 version ordered?
All of the ordered planes (6 of them) are A220-300s.
DeleteThe leased ones, not sure.
Thank you
Delete@Anonymous10:28
DeleteWe don't know, please don't assume it is 300s, I am more inclined to believe they're A220 200s, and lease option will consist of mix 200s and 300s.
It is 300s. Croatia Airlines and Airbus announced it. Read the article, or at least the headline. Jeez.
Delete
Delete@Anonymous12:25
OK,. I didn't see 300, i just saw A220, automatically thought it was A220 100s, cause they're smaller, but then had a look offical news source and all 15 aicraft will be A220 300 it seems, they haven't decided on it yet, but the agrument is A220 300 is more efficent then A220 100 so cost per seat is negligable but spare cappcity for future growth... Anyways, stand corrected.
These planes are perfect for OU but I would not retire the Q400s.
ReplyDeleteSame
Delete@Anonymous10:27
DeleteCroatian airlines must retire Q400s before this decade is out, all 6 of Q400s are over 10 years old now, and they're getting more expensive as aircraft age. So all of them will be retired at the end of this decade, if there's a lease still left on them returned to lessors, but I think all 6 Q400s were purchased on lease to own, which means in 2028 all 6 aircraft will be retired, perhaps 2 will be kept and 4 sold. A220 300 is much better aircraft for Croatian market and if there are 15 of these in 2026/8, having 6 Q400 seems to me a bit of overkill, i.e there won’t be demand for 21 aircraft, at least I don’t think it will be, as most of Croatia’s coast is well connected with European airport hubs. Competition...
Bravo OU!
ReplyDeleteBravo Hrvatska!
I still think they should keep the Q400 in their fleet.
ReplyDelete+1
DeleteOr switch to ATR
DeleteAny reason why they should keep the Q400s, or it's just a gutt feeling?
DeleteQ400, for them the perfect plane to run high frequency routes along the coast during the summer and to properly connect Zagreb with the coast. But they will have to change their business model towards an airline with a focus on growth and being profitable.
DeleteThe Q400 would be better suited in the leaner winter months on many routes while they could use the A220 fleet for charters, even if they originate from within the EU and not Croatia.
In a nutshell, having flexibility by keeping the Q400 would allow them to become a more dynamic airline. But again, this would require a major change in their thinking and business practices.
Croatia Airlines made it very clear they will be only operating Airbus A220's in the future.
DeleteOne-type,, jet-only fleet will help OU cut costs and increase frequencies. Focus shift to coastal airports during the summer season, these are all indicators that their mindset is being changed. The only thing missing are overseas flights, but that may also change. Should not be too harsh because that person from Rijeka constantly bitches about everything, going that crazy far to even proclaim flights to FRA as loss generating which is false.
DeleteWill look nice in Croatia Airlines colors :)
ReplyDeleteUse the new A220 to develop SPU and ZAG hubs and keep the Q400 to feed proper waves of flights. Can only but dream.
ReplyDeleteI would get rid of them pesky Q400s. So much headache, so much issues for many airlines. Remember SAS and Austrian issues? Better to stick to A220 and Airbus family. Many EU airlines have dumped their Boeing's or non-Europrean planes to European.
DeleteVolotea, airBaltic and so on.
Are you suggesting to dump Canadian made Q400 and replace them with European made... sorry, Canadian made A220?
DeleteYeah, so?
DeleteNot the sharpest knife in the drawer
DeleteNot at all!!
DeletePerfect fit for OU
ReplyDeleteThe A220s are good aircraft but are they a perfect fit for Croatia Airlines? It will double their capacity on every single route. And I'm just wondering what they will do with these planes in winter when they have trouble filling Dash 8s on some key routes.
DeleteIt is risky but it can be turned into a success. I'm just highly unconvinced it can be done by this management.
DeleteIt's totally opposite of the perfect fit for OU
Deletewhat would your perfect fleet look like?
DeleteHe would like Dash, E2, A320neo, A321neoXLR, A330 and A350.
DeleteIt is absolutely perfect and a single fleet type for a small Airline as OU is perfect and will save money!
DeleteBrate ne mogu napunit pola Dasha na nijednom letu zimi. Šta će sa avionom s duplim kapacitetom putnika???
DeleteI think it's a great jet and it would be nice to see them flying in this region more.
ReplyDeleteCroatia airlines definitely started making some better moves in the last year
ReplyDeleteLiterally what are you talking about
Deleteyes. coming from nothing
DeleteThey started making some better business decisions. Purchase of A220s, expanding on the coast, improving some functionalities and options on their website (which are way overdue and late compared to almost all European airlines).
DeleteThey will still fly empty A220s during winter season and have the worst network out of their hub and the capital of the country for 1 weekly ridiculous flights out of SPU.
DeleteNice work!
ReplyDeleteWould be nice if they gave us a timeframe on when the leased planes will arrive. I get that the ordered ones will be delivered between 2024 and 2026.
ReplyDeleteLove this plane
ReplyDeleteSo 15 aircraft all with 130 seats? Very risky in my opinion. They should have left some flexibility by keeping the Dashes.
ReplyDeleteSingle type fleet has many positives
DeleteNo matter how it ends, at least something is FINALLY happening at OU.
DeleteNo it is not. Everything remains the same. Politically appointed incompetent management stays. Feeder model, politically introduced as well, stays. Operational costs will be lower, but initial price of these super expensive aircraft will neutralize it, and overall costs will bigger. So, NO, nothing is finally happening at OU.
DeleteYou make yourself sound such an expert on OU! You ought to become their advisor seeing as you know so much!
DeleteAnon 14:14
DeleteHahaha, you’ve nailed it big time!
@pozdrav iz Rijeke11:56
DeleteI don't even read your comments, if I could put you on ignore/block like one can do on twitter, i'd do it.
@14.14 Unfortunately, I can't advise them, I don't have Kradeze booklet
Delete@17.52 Hau jes nou
@18.17 Please don't comment things you don't read - you prove yourself stupid
Bahati i bezobrazni obično imaju propuh u glavi.
DeletePozdrav, what is a Kradeze booklet?
DeletePartijska knjizica, clanska iskaznica, document on Kradeze membership
DeleteNever seen such a frustrated commentator as the one above :(
DeleteNot one single argument against my claims, and then let's go personal. And I am the one who is frustrated, LOL
DeleteNice to see but again just another sideways move by OU. They need to go on the offensive to survive. I wish today's news would have had an order for 12 aircraft with an option for 12 more. Now that would have been a good news day.
ReplyDeleteSign under every word +1000
DeleteLooks to me the roll model for potential buyer. Now when they got rid of all qualifed staff; but still 200-300 redundant due outdated business model, Lufthansa might now consider to swallow OU. But, they also suffer lack of qualified staff and bunch of "titles only " at managerial level.
DeleteFantastic news. Good luck OU!
ReplyDeleteExciting times ahead for Croatia Airlines.
ReplyDeleteNo. It would have been so if they had competent management, got rid of excessive administrative work force, reduced levels of crime, corruption, nepotism and political influence, did some serious marketing work, created sinergy with ZAG hub, connected remote parts of Croatia with which other, leased long-haul plane and opened North America flights, created much bigger regional network...... I see absolutely nothing exciting about one type of aircraft, the most expensive on the market, replacing other type of aircraft, already paid off.
DeleteAlready paid off?? How on earth did a company, corrupt to the bone, as you say, manage to pay off aircraft???
DeleteAirbuses are paid off and owned by OU. Same aircraft, same age, fly all over the World and can do it for at least one decade more. OU is doing again what was done when Airbuses initially joined the fleet. Exchanging paid off aircraft, 737 at that time, for aircraft absolutely not matching their needs, and which will be additional huuuge financial burden. With just one small difference : Tudjman firmly believed Airbus order would help Croatia on its European path. Maybe it even did. Today, the deal is buying Brussels armchair for Plenkovic, the leader of fully verdicted criminal organization
DeleteLooks like they have a good and ambitious plan to transform themselves.
ReplyDeleteI really hope this will kickstart things at OU. It is much needed.
DeleteGood luck. At least some positive development in a sea of missed opportunities.
ReplyDeleteI feel its like the biggening of the end for the Croatian Airline. The fleet is expensive to buy, and they will struggle to fill the planes on some routes like Ljubljana, Sarajevo and some domestic routes... A big challenge might be fatal!
ReplyDeleteThey don't fly to Ljubljana.
DeleteIt's on their list and might start the next summer
DeleteOU will neva be left alone. A very visited country worldwide will not allow it.
DeleteCroatia is small fry for some really very well visited countries like Italy. Didn't stop their flag carrier from going bust.
DeleteCroatia will profit more if they have low cost company flying across Europe and bring tourist to Croatia. Let's be honest, but mass tourism in Croatia is the one that rather come by car, so they should target them to convert into passengers. Linking ZG with Munich and Frankfurt and few other mayor cities in Europe can secure them survival year around, and that should be it. No way they can take over the passengers from other companies, but they can from the highways
Delete@Anonymous11:03
DeleteLjubljana is only 110km away from Zagreb, 126km from Zagreb airport, and Slovenian Railways plan to connect Zagreb and Ljubljana with fast train shuttle by 2025, the service will be performed by Flirt Kiss trains Slovenian Railways are introducing in its service.
Also, Croatia is completely modernizing its railway infrastructure for speeds over 100km, with many routes capable supporting speeds of 160km.Why not higher? Signalisation and not all rail lines are fully separated from road traffic, there are still few places where there are level crossings, around 20 level crossings need to be removed and replaced by underpass or overpasses, something not undertaken by current rail modernization but eventually will be done, allowing for much higher speeds.
The fleet is expensive to buy??? Says you??? Half a billion is nothing for a country that generates 12 billion income in tourism registered, and another 6 billion unregistered.
DeleteHow are you going to take those 12 billion and esp. those 6 billion and legally give half a billion to fund aircraft purchase? Impossible to do it legally.
DeleteTruth to be told, 25% lower fuel burn is when compared to current jet fleet but not to competitors with higher density MAX or NEO engines. Ryan 737MAX8 and Wizz A321NEO have lower cost per seat. Ryan and Wizz are not going to be affraid of Croatia A220.
ReplyDeleteOnce the subsidies dry up from Zagreb Airport, Ryanair will be off. Wizz finances are in a bad way, so I wouldn't be surprised if they file for bankruptcy in the next 12-18 months!
DeleteRyanair does not receive any subsidies in Zagreb.
DeleteIt receives incentives which were specially made for them and are no longer available to any other airline.
Delete@Anon 11:32: Ryanair operates from a lot of airports where they receive no subsidies. I don't see them leaving ZAG, unless they can get much more money somewhere else. Have a look at their expansion planes, they'll have to base those 700 aircraft somewhere...
DeleteHey Anon 11:32. Comment about planes like 8200 and 321NEO having lower cost per seat than A220 is a fact easily checked on the internet. Would be great if you can show any source for your claims about FR leaving ZAG or W6 going bust. Without any, your claims are just wishful thinking in hopes OU will be able to fight off ULCCs.
DeleteI wonder how much it cost in the end.
ReplyDeletelist price is 90 million dollars for the A220-300.
DeleteBut that is list price. They surely got a discount.
DeleteSo it will cost them like half a billion dollars? Crazy
DeleteWhen JetBlue purchased 60 A220-300s, it cost them 60 million per aircraft.
Delete@Anonymous11:30
Delete"I wonder how much it cost in the end."
Roughly €300 million for 6 aircraft, and leasing additional 9 would cost further €40 million per year.
So the entire existing fleet will be retired within 4 years?
ReplyDeleteYes
DeleteThe good thing about the A220 is its range. They will be able to reach many new destinations.
ReplyDeleteThey haven't even remotely used the maximum range of the A320 so I doubt they will be using it on the A220 either.
DeleteIt has the same range as A319. Everything in range of 220 could have been reached with 319. Actually it's the worst thing here because they are going to use it on feeder services of one hour
DeleteWithout their dashes they can’t be profitable only with the A220’s there are some routes that need smaller aircraft.
ReplyDeleteSo they will fly PSO routes like Osijek-Zagreb with 130 sear plane? Good luck.
ReplyDeleteWhy would they care? They get money to fly these routes because they are unprofitable.
DeleteOU does not fly Osijek-Zagreb and never will.
DeleteThey did in the 90s
DeleteCongratulations!
ReplyDeleteFor everyone saying this is a profitable business move. How will an airline, with routes perfect for a 70 seat aircraft, manage to fill up 6 120-160 seat aircraft? With their current schedule (for example during WS brussels,zurich,munich and vienna flights are all flown with 70 seat dash aircraft) and frequencies this is surely not profitable unless they reduce frequencies. Imagine flying the A319 twice daily to Vienna. Is that profitable? Don’t think so…
ReplyDeleteHope it's third time lucky for them. Last two Airbus orders never materialised.
ReplyDeleteLaunch flights from LJU, SKP to big cities and ACMI
ReplyDeleteThis will make them go bust within a year. No way to finance these jets.
ReplyDeleteIt is very interesting that this order was firmed up last night in Zagreb in complete secrecy with no press or media. I read in Croatian media that it is probably because they want to avoid any qiestions about financing, their poor finances, or corruption.
ReplyDeleteIt is odd that they don't invite any media to what is their biggest news in the last 10 years. Telling.
DeleteAn airline that last week announced that it is getting 39 million EUR in aid to maintain liquidity is ordering A220s. Ok...
ReplyDeleteThe chances for Croatia Airlines to receive these units are the same as 4 A319 ceo order from 2008, or 4 A320 neo order from 2015.
ReplyDeleteThe most likely scenario is that A220 deliveries will be late and Croatia Airlines will not hurry to receive any, due to its financial situation. By 2027 or 2028 the order would be converted into a new model such as zeroe regional turboprop, to be delivered by 2035. And the saga will continue.
That's exactly what they did, bought the time to save the deposit and to pray to God to send them some money... If not, they will sign new contract and buy more time... Or simply go under the ice and end the agony.
DeleteCroatian government should seriously consider making new airlines from the scratch.
Keep the old ladies around OU! French are not telling that the PW's have an average engine shop visit at 6K cycles beside other design issues. LX and BT will not tell due to the NDA. At least will keep your maintenance busy. Godspeed!
ReplyDeleteMaybe Air Tanzania should be mentioned as well, A220 operator, which fleet is currently grounded
DeleteI guess it’s definitely over with Aegean. That is sad, would have been a nice development.
ReplyDeleteSo Croatian taxpayers will hand over aprox. half a billion dollars worth of aircraft, for what? Just new planes and no development, no change of game, no new strategy? As Pozdrav said, Croatia currently operates as feeder airline and as a such, it should not own any planes. This is double burden! There is no way CTN can finance this on its own.
ReplyDeleteDude, did you see yesterday's stats here? Croatia is visited by millions of people. Only ZAG, SPU and DBV generate a traffic of over 7 million passengers. If you think it's not enough then ok.
DeleteIt is not enough because OU market share is 15 % and LF less than 60 %. It's not about Croatia potential, on the contrary, potential is huge, but OU is not capable of using that potential. And it's not new ultra expensive aircraft type which will change it, it will make it even worse
Delete:) yeah Check out this 'airBaltic Has Halved Its January-September Net Loss This Year With A $17.7 Q3 Profit' - https://simpleflying.com/airbaltic-halves-year-to-date-loss-q3-profit/
DeleteProfit in the third quarter, peak summer season, when every single carrier in Northern hemisphere makes profit, including OU. And overall annual LOSS. However, nice try.....
DeleteNew planes are great but OU is not going to automatically become sustainable and profitable when they arrive.
ReplyDeleteAir Baltic will probably soon purchase a minority stake in Croatia Airlines 🇭🇷
ReplyDeleteAfter A220 making the fleet, Air Baltic is making heavy losses and barely surviving leasing out aircraft. Not exactly in position to buy anything.
Delete:) yeah Check out this 'airBaltic Has Halved Its January-September Net Loss This Year With A $17.7 Q3 Profit' - https://simpleflying.com/airbaltic-halves-year-to-date-loss-q3-profit/
DeleteProfit in third quarter, peak summer season, when every single carrier in Northern hemisphere makes profit, including OU. And overall annual LOSS. However, nice try....
DeleteBravo Hrvatska!
ReplyDeleteYeah right
DeleteThis is great. Proven fact people don’t like turboprop planes. Also this reduces a lot of expenses. Now time for air serbia to decide on fleet renewal strategy. Too many delays with their old fleet and problems. Air Serbia can thrive but a fleet renewal is a must.
ReplyDeleteReduces a lot of expenses... yeah, but if you can't afford to run a 15 year old Clio, buying a brand new Tesla isn't the best financial decision.
DeleteOdličan izbor ako i dalje žele biti ispodprosječna gubitaška kompanija.... 🤣
ReplyDeleteZemlja s toliko turista, ali nam turiste vozi easyjet, ryan, british, lufthansa... A po ovoj odluci Croatia nije baš željna uzeti dio kolača. Dat će Plenki subvencije.
+1.000.000
DeleteDoes anyone know how many employees OU currently has?
ReplyDeleteA220 are good aircraft, but simply to big for OU needs. Lower cost per seat is not the only factor when choosing an aircraft. It should also be right for planned network. Taking into account OU network A220 is simply a bad choice. It make no sense to take an aircraft just because it is fine for other airlines. For some airlines one aircraft type might be excellent for others the same aircraft might be a bad choice and just kill them.
ReplyDelete