Croatia Airlines has signed a Memorandum of Understanding (MoU) with Airbus for the purchase of six A220 aircraft but is yet to firm up its order, the European plane manufacturer told EX-YU Aviation News. The contract is expected to be formalised once the financing for the deal and other paperwork is finalised. Airbus will officially list the six A220s in its order books when the process is completed. Once the order is officially placed, exact details will be made public, including which of the two versions of the aircraft the carrier has opted for. It is believed the airline will include both the -100 and -300 variants in its future fleet (three each), although this is yet to be confirmed. Furthermore, it is expected for Croatia Airlines to have further options as part of its order.
The agreement between Croatia Airlines and Airbus involves a historical order for A319s, which was later converted into an order for the A320neos, that have now been substituted for the A220s. The Croatian carrier is believed to have deposited several million euros for the previous order. The scrapped A320neos were to be delivered to the airline this year and in 2023. Croatia Airlines has said renewing its fleet is part of its “strategy for success” where it plans to radically turn around its business in just a few years.
Croatia Airlines intends to replace its entire fleet of five A319s, two A320s and six Dash 8 Q400 turboprops with the A220s. “The fleet renewal over the next four years represents a significant development cycle for the company with the aim of having a single-type fleet of A220s in the future”, Croatia Airlines said. The carrier’s current average fleet age is 17.3 years, with the A320s an average of 22.3 years old, the A319s 21.1 years old and the Dash 8s 13.3 years old. During the first three quarters of the year, Croatia Airlines utilised its smaller turboprop fleet on 10.326 flights, or on 58.7% of all operated services, while the remaining 41.3%, or 7.260 flights, were maintained by the Airbus fleet. “The structure of the equipment used is adapted to traffic needs and the given circumstances. Although the use of Airbus aircraft was increased during the nine-month period, the emphasis nevertheless was on the use of the Q400 fleet”, the company noted.
I still don't understand where they will find the money for this.
ReplyDeleteI wonder the same. The do not have money for current business activities let alone a multi million plane order.
Delete+ 1
DeleteThey are not profitable-no money for new purchases
They are being sued for receiving state aid- even if they win, still can't get more money from the state, but
"they sign MoU for airplane purchases"
Very detached from reality and probably just some bad PR
They are not being sued. The Commission is.
DeleteRealistically how much could a dela for 6 A220s cost?
DeleteMaybe they will buy it as leasing and pay monthly. There are many models of buying the plane these days. They do not need to have 1bn EUR cash advance payment.
DeleteIt will probably be some leaseback agreement. I mean even with discounts the order is probably worth around 400 million EUR.
DeleteIt's a great plane, but every new plane is too expensive for OU. With the bad LF, used E175/E195 or CRJ700/900 is enough for Croatia. The CRJ is said to be cheaper than the Embraer in terms of operating costs. Only for summer and coast you need A320
DeleteBanks land money, so do investment funds, don't they. I worry about your understanding of banking nowadays.
Deletec'est certainement l'état
DeleteHope it doesn't stay as a memorandum of understanding only.
ReplyDeleteBy the way, Bulgaria Air will receive 4 A220-300 from Air Lease Corporation in 2023.
ReplyDeleteOU is sleeping !
It was easier and cheaper for Croatia Airlines to just lease these planes no?
DeleteKeep in mind that OU has several million tied up at Airbus for the older plane order.
DeleteThe cooperation Croatia Airlines has with Airbus and the deposit they have with them made this the only plausible arrangement.
DeleteNo wonder most of their current Embraers are operating for TAP since the summer...
DeleteCroatia Airlines don't own any Embraers.
DeleteFB^ not OU
DeleteLease it is. No worries about the money, that's the least of their problems!
DeleteStill think it's very risky to replace entire fleet with the A220s.
ReplyDeleteThe A220 with 150 seats is the ideally sized aircraft for all airlines in the region.
DeleteBut OU's average cabin load factor is 60% and they fly their Dash 8 with 80 seats on almost 60% of their flights, as shown in the data in the article.
DeleteCroatia Airlines does have an issue with low load factor so it will e tricky improving that with 6 A220s.
DeleteA220 are not happening, at least not within the world of Homo economicus :) but dreaming should last
DeleteIt is a poison pill, intended to avert a potential buyer. So that the current model can perpetuate it's self
DeleteAVERAGE LF, means 7 Airbus and 6 DASH is a bit over 60%, which, in turn, means that the LF on DASH is about 80 to 85%.
DeleteNo, that's not how it works.
DeleteBravo Hrvatska!
ReplyDeleteJašta
DeleteHuge!
DeleteGargantuan!
DeleteI think it's a great jet and it would be nice to see them flying in this region more.
ReplyDeleteI was wondering why Airbus still wasn't announcing anything about this.
ReplyDeleteHope the order comes in soon.
ReplyDeleteAny idea when the order could be placed?
ReplyDeleteIf they hope to have the planes in their fleet soon it should be ASAP.
DeleteWhen are first deliveries expected?
DeleteNext year
DeleteThat's really quick. Looking forward to it.
DeleteIf these are brand new A220s there is no chance the first one can arrive next year, especially since they haven't even ordered the plane. First one is likely to come in early 2024 if they place the order within the next month.
DeleteLove this plane
ReplyDeleteHoping this doesn't end up the same way as JU's A320neos or JP's SSJ100s.
ReplyDeleteI wouldn't be surprised.
DeleteWell, frankly speaking, I doubt those plains will ever come, so I HOPE this ends up as JU's A320neos, cause that would mean that OU get the deposit money back and this is the most we can all hope for.
DeleteJU had they deposit back thanks to Etihad's support.
DeleteOh God, imagine any of EXYU bought Sukoi. They would be in trouble now. Well probably even before the attack on Ukraine, but with sanctions even more.
DeleteAdria ordering the plane was a clear sign it was on its deathbed.
DeletePlains won't be coming, planes will be.
DeleteExtremely risky strategy to move to a single type fleet, especially with their finances.
ReplyDeleteair Baltic managed to do it successfully.
DeleteSo they haven't actually ordered planes yet?
ReplyDeleteNo
DeleteI wouldn't be surprised if it is all PR.
DeleteIt is not PR. Read the article. Airbus says they are finishing up paperwork.
DeleteLet's wait and see...
DeleteThere must be an option for more planes. I doubt they will halve their fleet.
ReplyDeleteI think another 4 a220 10 in total will be ideal for them for the next 20 years .
ReplyDelete+1
DeleteI would still keep some turboprops alongside them.
DeleteI'm interested to see how it will work for them doubling capacity on most routes.
ReplyDeleteExciting times ahead for Croatia Airlines.
ReplyDeleteSame zabokrecina ahead for Croatia Airlines, continuing to be LH feeder and servant. Only with much much more expensive aircraft. Can't see anything exciting about it.
DeleteBut with 6 planes I can't see them being able to sustain the current route network they have (in summer). Will they wet lease capacity in addition to these aircraft?
ReplyDeleteI don’t understand it neither, and they passed on so sweet deal with Embraer for E2 Jets
DeleteEither. How sweet?
DeleteThose Q400s can be used for another 8 years without a problem.
ReplyDeleteI simply cannot see other ending to this then the same one that happened to the JP in their sukhoi case...
ReplyDeleteSame unfortunately. Hope they prove me wrong.
DeleteThis screams PR stunt, their "new" a320 hasn't flown yet, but they spent a lot of money painting it in star alliance livery, and how the F* will they operate routes like osijek-munich ir rijeka-zurich with 140 pax plane when they can't even fill the dash8s?
ReplyDeleteThey wont, they will operate only ZAG-LH hubs 3x/day. More than enough ACs for that.
DeleteReasonable point... If the owner was reasonable, which it is not, they would operate 5 to 6 airplanes. More than enough to maintain connectivity out of Croatia.
DeleteGood luck. At least some positive development in a sea of missed opportunities.
ReplyDeletePositive development? Acquiring aircraft 50 % more expensive than direct competitor, with inadequate seating capacity which will further decrease LF and omitting converting existing neo order to 321XLR and finally switching from feeder to real carrier. This my friend, if comes to realization, will be the biggest missed opportunity of all
DeleteOrder 321XLR? Do you know the delivery times?
DeleteA220 is a very good plane, that's why nobody orders the A319neo. But no matter, this plane will never arrive at Croatia
I really hope this will kickstart things at OU. It is much needed.
ReplyDeleteHow can it kickstart things when the same people running the company for the last 5 years will be running it in the next 5 too?
DeleteJust small correction : not running, it's ruining
DeleteHa ha ha ha ha ha ha ha ha
DeleteGreat
purchase price anyone?
ReplyDeleteList price $91.5 million per plane.
DeleteWow that's one expensive narrow body jet!
DeleteWhat is the list price for an A320neo?
DeleteGoogle is your friend.
DeleteThe A320ceo costs a neat $101 million at list price, while the A320neo goes for $110.6 million
DeleteYou have an updated article here about pricing for Airbus planes: https://simpleflying.com/how-much-do-airbus-aircraft-cost/
DeleteExpensive is relative. They are buying 6 plus 6 reserves, and have the deposit from the previous reservation. I reckon it will be around USD 70 mil per plane.
DeleteHow much was that deposit? Over 100 million?
DeleteThis kills their chance of being privatized to a serious company/airline. No one will take on an airline with a huge loan that they will need to take out for these planes while it produces at the same time.
ReplyDeleteIt can't make it more attractive. Potential buyer would rather order A220 directly from Airbus than to deal with all the mess that would come from purtchase of Croatia Airlines.
DeletePrivatization story has always been fake to tone down resentment from the tax payer. OU is President Tuđman's baby, they will get the new planes and are here to stay!
DeleteLike everything else in Croatia, OU today has absolutely nothing to do with President Tudjman and his legacy. If he was still around, OU would have been real company and we all, from the industry, or just clients, could have been proud of it. Unfortunatelly, criminals and Uhljebs took over, not only OU but entire country, destroyed everything, and made us ashamed and sad
Delete100% pozdrav
DeleteNo, it made you angry and frustrated.
DeleteWill the cabin crew and pilots have to undergo training to shift to the A220?
ReplyDeleteYes. Pilots will need new type rating. The A220 is essentially a Bombardier plane and was designed by Bombardier. It does not have commonality with the rest of the Airbus short haul fleet.
DeleteTransition training lasts a few weeks.
DeleteSo the entire existing fleet will be retired within 4 years?
ReplyDeleteYes, whole Croatia Airlines will be retired in 4 years.
DeleteFrom the text
Delete“The fleet renewal over the next four years represents a significant development cycle for the company with the aim of having a single-type fleet of A220s in the future”
The good thing about the A220 is its range. it will unlock some new destinations for them.
ReplyDeleteThey don't fly anything east of Skopje and anything west of Dublin. I don't think they really need longer range planes.
DeleteLet's not be nasty. Their most eastern destination is Athens! :D
DeleteThey fly to Tel Aviv
DeleteAnonymous11:32
DeleteIt is not really the question of unlocking new destinations or getting to the further destinations but if OU bringing greater and greater value to the Croatian market (people and industry).
A220 is regional jet. It's range is similar to A319, and they are not interested in unlocking any new destinations. If they wanted that, they could have converted 320 neo to 321 XLR order. They are getting 220 only to continue feeding Cartel
DeleteI'm waiting for Pozdrav to moan about this! ;)
ReplyDeleteScroll up, hope you will be happy living my life at least for few minutes. Unlike you, I don't care about yours (life and opinions)
DeletePozdrav, no-one is interested in your opinions neither!
DeleteThose are not opinions, they are simply outbursts of hate and irrationality. Pozz, time for anger management perhaps?
Delete11.2 million tourists in 2021, which means much more in 2022. 20% of GDP, and one incompetent, struggling, corrupt airline.
ReplyDeletePlease don't say that, you will be immediately advised to take anger management course, and try to reduce your hate and irrationality 😃
DeleteOutbursts...
DeleteIt would be better for OU to buy second hand CRJ 900, not very old.
ReplyDeleteAbsolutely not. CRJ is not exactly the most economical choice. In my opinion it should be
DeleteE170-5/190-5 to gradually replace and at least triple current Airbus and Q400 fleets, and make possible significant growth of domestic, regional and european network, and 321 xlr instead of 320 neo order, for North America and Asia flights. But than, maybe it's just my anger, hate and irrationality, and maybe it's better to go on with ultra expensive new 220's which will continue feeding LH 😃