Croatia Airlines plans to sell and leaseback Airbus A320-family aircraft it currently owns as it prepares to take delivery of its first A220 jets next year and eventually become an all A220-operator. “In 2023, the company plans to agree on and effectuate a sale and leaseback of its own Airbus aircraft to ensure the flexibility needed for the implementation of the fleet renewal plan, while eliminating the risks of the disposal of non-airworthy aircraft”, Croatia Airlines said. The carrier owns five out of the thirteen aircraft within its existing fleet, including four A319s and one A320. The sole A320 in its ownership is 23 years old, while the four A319s average 24 years.
Croatia Airlines entered into long-term operating lease contracts for the first six Airbus A220 type aircraft (four A220-300 and two A220-100) with the Air Lease Corporation this January. For now, it plans to replace twelve aircraft, with the possibility to introduce another three in 2027, as envisaged by its post-Covid strategy. The first A220 is expected to enter into the fleet next April. “Airbus didn’t have aircraft available until 2025 and 2026 so we will first take delivery of planes from the leasing company. All aircraft will be financed through an operating lease”, Croatia Airlines’ CEO, Jasmin Bajić, said recently. An operating lease is a contract that allows for the aircraft’s use but does not give Croatia Airlines ownership rights. These leases will allow the carrier to use the jets without incurring the high expenses involved in purchasing it.
The carrier’s CEO noted that taking delivery of a new aircraft type will be challenging. “Taking delivery of new aircraft and phasing out old ones is a huge job that requires the commitment of everyone in the company, because it is a major project that necessitates all of us to give it our all. At one point we will have three aircraft types in our fleet, which is operationally, financially and in every other sense very demanding”, Mr Bajić said recently. Commenting on the aircraft the airline currently operates but does not own, the CEO said, “The Dash 8s and two Airbuses are owned by leasing companies and their fate depends on their owners”.
So they will no longer own any aircraft in its fleet?
ReplyDeleteCorrect
Delete"Croatia Airlines plans to sell and leaseback Airbus A320-family aircraft it currently owns "....
DeleteWhat???? Who is gonna buy that (s)crap? What kind of an operation is that? So this idiocy translates into; I'll sell the 30 year old used car in order to more easily finance the purchase of the latest model
Their a320 family is worth about 3 monthly instalments of their soon to be a220 fleet
ReplyDeleteTrue
DeleteIs the A220 purchase still a thing? They've been renewing their fleet for 10+ years.
Deletehttps://www.exyuaviation.com/2013/11/croatia-airlines-plans-fleet-expansion.html
I'm just glad they will get rid of these dinosaurs eventually. They are old. Half of the overhead TV screens flicker or don't even work, and they are used for the safety demo.
ReplyDeleteYeah, overhead screens are exactly what make an airline successful
DeleteYeah, who needs safety demos.
DeleteOk, if you insist, I will re-frase : yeah, safety demos are exactly what make an airline successful. And next time, please try to get the message of the post before you comment on it, pretending to be wise
Deletere-phrase, autocorrect
DeleteThe main point of the message is that these planes are dinosaurs, you the guy who got stuck on screens.
DeleteYou just got burned dude, take it like a man.
I am not here to be burned, burnt, buried or bored, but to discuss the topic. I was not the one starting talking about the screens or about safety demo. And if you haven't noticed, I also had main point of my message : getting rid of "dinosaurs" will change nothing. OU has many many many more much much much more important things to change before, and no single problem will just disappear, with or without "dinosaur" and with or without" brand new shiny A220 fleet ". And I wish you many pleasant flights on OU in new fleet where you will be able to carefully observe safety demos on new screens in high resolution, paid from my pocket
Delete@ 17:28
Delete+1
The point is simply that the planes are too old now, aren't they? Everything else wasn't the point, so why waste so many words?
DeleteI wish you used auto-correct... all the time...
DeleteHe is his usual rude and dismissive...
DeleteThis Rijeka guy has regularly conflicts with everyone about just some little words in others comments. Really annoying. It fu*ks up the topic with unnecessary things.
DeleteThese aircraft need to be retired sooner rather than later.
ReplyDeleteAnd I remember when people were criticizing JU for not owning any of its aircraft and holding OU as an example. So much for that.
ReplyDelete+100
DeleteIs it common for airlines not to own their planes?
DeleteIt is not uncommon.
Deleteits common for small companies to not own their planes. especially if they have a high risk of failing due to economic/political instability or established market share. OU doesn't have enough of its own market share to justify buying the most expensive new planes. and JU doesn't have the economic/ political stability to have the assurance to buy planes yet.
Deleteowning planes is most often for the large established airlines and flag carriers
We will find out,
ReplyDeleteWhat would be in it for the company that buys these planes? They are 20+ years old, they lease it back to Croatia Airlines for some low price and after 2 years they will have to retire them.
ReplyDeleteMaybe someone who wants to use it afterwards for spare parts.
DeleteYes, but they won't be able to use it immediately. It won't be easy to find someone.
DeleteThis will be a relatively short term lease before. Maybe a year at most.
DeleteSale price would be 1 or 2 years of lease fee at best. So the investor will have a free of charge plane in 2 years (except maintenance costs upon return)
DeleteAnother way to get some cash to friends of the politicians.
DeleteI hope this works out and I hope Croatia Airlines doesn't have engine issues like so many A220 operators are having.
ReplyDeleteGood luck finding a buyer for these old Airbuses. I highly doubt anyone would be willing to lease them back.
ReplyDeleteMy guess : They will sell them, for lower price than real one is, for the commissions to make the difference, to some big leasing company, and leasing company will lease them on to some ACMI company, which is able to make money on them despite their age, what OU, multiple proven, was never able (or allowed) to do
DeleteMy guess is that the Croatian government will buy them for 50 million euros each!
DeleteHahahahahahahaha, good one!!!! 😃
DeleteBut please, don't provide them with ideas, as they could actually go for it! 😃
DeleteI bet they do buy them lol
DeleteThus, the long-awaited expansion of the OU in B&H will be with a large capacity, namely the A220.
ReplyDeleteYes, they will offer more seats to lower yielding markets while to markets where they actually make the most money they will have less capacity then before. Great strategy.
DeleteWhere will they offer less? A319= A220-300, Dash here have an increase, A320 is generally used as a backup. Their backbone is the A319.
DeleteThat backbone has multiple fractures
DeleteIt's interesting to see Croatia Airlines making this transition to an all A220 fleet. The sale and leaseback strategy is a smart move to facilitate the shift while minimizing risks. Looking forward to seeing their new A220s in action!
ReplyDeleteThe A220 is a fantastic aircraft. It will open up new route possibilities and enhance their overall performance.
DeleteNot so sure about it....
DeleteIt is a good choice for passengers. Operationally, also not so sure.
Delete@anon 9.20
DeleteIt was never aircraft type that limited route possibilities for OU. And so far we've seen absolutely nothing that indicates the tiniest bit of mindset shift in the company.
I can't wait to spot those A220s in Croatia Airlines' livery!
ReplyDeleteAnd I can't wait to continue paying for your spotting pleasure
DeleteSpotting pleasure! That’s exactly what it is, in Slovenia as well. This obsession with a ‘national’ carrier, who will ironically carry very little of the nation. Thanks for finding a word for it; I couldn’t quite put my finger on what it was. And it’s exactly that: people who don’t fly yet miss going to the fence at LJU and looking at Adria planes land.
DeleteKudos to Croatia Airlines for making strategic decisions to ensure their long-term success. It's a challenging transition, but it seems like they have a well-thought-out plan.
ReplyDeleteTotally opposite. Sale and leaseback of A320 is good move, but only short-term, in order to be "covered" during transition to A220 (of course, plus commissions on contracts for selected individuals, what some posters before already noted). Long-term, selecting single type short and medium range aircraft, the most expensive on the market, too often AOG for engine issues, to continue "business model" (read : political decision) of being feeder to others, is totally, but totally wrong, and once again, driven by political will and order. Croatia is relatively big market, which has need for better domestic connections with smaller aircraft, huuuge seasonal market which requires bigger aircraft for seasonal coastal tourist traffic and the biggest ex-yu (and wider) long-haul market with its tourism and diaspora, which could easily use long haul aircraft as well. Single type fleet is totally inappropriate in case of OU, and comes as a result of crime, corruption and political influence on the highest level.
DeleteFor a “national carrier” decapitalization by shedding its fleet can be a fatal error, as it cannot ensure operations during times of economic strain and crisis. These companies are strategic national assets, not private business.
DeleteDecapitation....
DeleteSelling off their existing Airbus fleet seems like a desperate move by Croatia Airlines. The A320 family aircraft may be aging, but getting rid of owned assets could come back to haunt them in the long run.
ReplyDeleteIt feels like they're taking unnecessary risks
ReplyDelete+1 a320 you can service everywhere, alot of parts. 220... look at airbaltic, a lot of acmi flying for it
DeleteWill the arrival of the A220s have an impact on their ticket prices? Will Croatia Airlines raise fares to cover the costs of leasing their new A220s?
ReplyDeleteIt's possible.
DeleteThay can and they will raise fares only to the extent that they still can sell tickets. It has nothing to do with a new type introduction per se.
DeleteIt will be interesting to follow this in the future.
DeleteThe age of the current fleet is a valid concern. However, rushing into a complete transition without assessing the long-term financial risks might not be the wisest move for Croatia Airlines.
ReplyDeleteYou really think they are taking A220 believing it's the wisest move for them? You really think they are a business/company/enterprise that assesses financial risks and options? If you really think that, then you miss information that Croatia Airlines is just a branch of Kradeze criminal organization which is using whole of Croatia, OU included, as its own ATM, and all or almost all actions, nationwide, have only one purpose, and that is financial and all other kinds of benefits for selected highly ranked members of the Organization, and OU is just one of the tools how they achieve it, where norms and actions applied to normal business, in normal countries, are not applicable
DeleteWhile I like the A220, I can't help but wonder if Croatia Airlines could have found a more financially sound way to modernize their fleet.
ReplyDeleteOf course they could have
DeleteThey could have simply leased out newer generation aircraft, with much less risk and associated costs.
Delete^ that would have been the cheapest and most sensible thing to do.
DeleteBut then somebody would not be able to brag that under his govt OU got the most modern fleet
DeleteWell this is the best way they can get something from them. They definitely won't need them for spare parts anymore so might as well try and sell them.
ReplyDelete+1
DeleteGood luck
ReplyDeleteThis fleet transition will be anything but smooth.
ReplyDeleteWhy?
DeleteBecause they'll have to juggle between three different plane types - the old A320s, the new A220s (that will be delivered over time and not in one shot) and the Dashes.
DeleteIs there any timeline as to when they will phase out the A320s?
ReplyDeleteThey haven't said anything so far, other than when the A220s are expected to arrive, and I wouldn't trust that timeline considering the issues the A220 plane has.
DeleteIt is more about finding someone to dispose of the planes, like they say.
ReplyDeleteYou can dispose of them yourself. Just sell the spare parts. Considering the situation on the market today, that should be easy.
Deleteaegean
ReplyDeleteAegean is going to buy 20+ year old Airbuses and lease them back to Croatia Airlines?
ReplyDeletemaybe a company that intends to convert them to freighters later is an option?
ReplyDeleteAre there any A320Fs flying? I only can think of A321Fs
ReplyDeletePoor OU…
ReplyDeleteWhy? They are about to get brand new planes
DeleteYou really don't understand anything @10.39
DeleteThere is very simple axiom: if you have only small/medium size aircrsft in your fleet, you need to fly a lot, preferably with LF higher than 50%. We haven’t seen any network expansion (yet). They and the loving bots just keep repeating the mantra about how modern the fleet will be (probably hoping this is all you need to thrive as airliner). They shoul already be looking fo ATRs, but what do they plan? To sell and lease back airplanes which are old and owned by them? This smells like kradeze tactics to get some friends rich. You sell and lease back new aircraft if you have to, but this is the signature of low utilisation of aircraft.
ReplyDelete+1
DeleteAegean ????? Certainly not . They have the intention to put the option of 12 a320/321neo into action . So they are gonna have 46+12 neo.So they don't mind of buying and lease back those ancient airplanes.
ReplyDelete*don't mind=don't care
ReplyDeleteWhat is Croatia Airlines' fleet utilization like? How many flights do their planes operate per day?
ReplyDeleteMost of their planes are on the ground over night and they have 1 A320 sitting just as a back up plane.
DeleteTheir network is not very big so they have no need to fly over night. Not to mention that all their destinations are in Europe.
DeleteYou must be some very kind, compassionate and polite person @12.51, describing their network as "not very big". Their network is shamefully and rediculously small, underdeveloped, restricted, limited, with tendency to shrink further and with more flights to be added to FRA and MUC only, with no proper hub, no proper ways, and with almost no connecting possibilities
Deleteno proper waves, damn autocorrect, the 3rd time today
DeletePlease Pozdrav, dont anger the god of the Autocorrection!
DeleteIf you dont stop he will turn your name into "Danke Deutschland iz Rijeke" which should get avoided at any cost...
Hu, thanks for good and useful advice. That one with Danke Deutschland, I definitely couldn't survive 😃 Will try to keep Him merciful 😃😃😃
DeleteI don't think there are any A320 freighters.
ReplyDeleteAfrica, acmis, sure they will sell them
ReplyDeleteTrafe air
ReplyDelete*Trade
ReplyDelete^ you are right. That is a possibility
ReplyDeleteGod knows how they will fill these planes when ZAG grew by 2% this August compared to August 2019. They are adding a lot more seats to a market that is basically stagnating.
ReplyDeleteThey are not adding lot more seats. At least at the moment, as 319 and 220 are about the same capacity, and about the same range. Instead adding much more seats, cheaper to operate, in order to grow themselves and stagnating market, grow network and connection possibilities, they are changing own planes to leased planes, which would have seats more expensive to operate, which would further reduce their growth and growth of respective market, and continuing to serve as feeder and disperse existing (coast) and potential (Balkans) passengers. It's not that they are not growing because of ZAG, it's opposite, ZAG is not growing because of them
DeleteI suspect that new owners are only up for the engines to lease/sale them, once OU retires the airframes. Nowadays there are not many CFM56-5B avail on market.
ReplyDeletePozdrav iz Rijeke. Your life would have no meaning without OU existance. It is amazing just to count number of comments you are posting. Even when article is about other airline, you always bring up OU. You have a crush on OU 😁
ReplyDelete