Recapitalisation and privatisation of Croatia Airlines are necessary for the company’s future, said the director of the state-owned flag carrier Croatia Airlines, Jasmin Bajic, on Monday.
In an interview with the Jutarnji List Daily, Jasmin Bajic, who has been at the head of Croatia Airlines for six months, talked about the company’s financial results in the first quarter of 2018, the past attempts to privatise the airline, and his plan for its future.
Although Croatia Airlines posted a net loss of €11.4 million in the first quarter of 2018, the operating loss in that period was reduced by 13 percent compared to Q1 2017.
“The positive trends continued in this year’s first quarter, in which the passenger number increased by 8 percent. In this period the airplanes were filled to 70.6 capacity, a 6 percent increase compared to winter last year. This is not a one or two-point growth, this is structural improvement without which there can be no further progress of Croatia Airlines,” Bajic said.
In January this year, the Croatian Pilots Union sent an open letter to the Prime Minister Plenkovic, saying that they were “gravely concerned about Croatia Airlines’ fate,” after the government had removed the company from its list of strategically important companies.
In the meantime, Croatia Airlines was once again put on the list, and the Transport Minister, Oleg Butkovic, said then they were “looking for the best solution for the company.”
The director dismissed all talk of the company’s bankruptcy.
The government has announced it would find a strategic partner for Croatia Airlines. On the European market there are fewer and fewer state-owned airline companies, and recapitalisation is “certainly important for the renewal of the fleet and the future leading position (of Croatia Airlines) in the region,” Bajic said, adding that the amount necessary would come up to some 250 million kuna (€33.7 million).
“Privatisation needs to be well prepared and only then begin the process. The business cycle has changed since the last attempts at privatisation, the market relations have changed in the past 5 years. The industry has record profits and this is why we should make use of the positive trends in the case of Croatia Airlines,” Bajic said.
He added that it was important that the state retains the 25 percent plus one share control package in order to be able to retain influence over tourism.
“Privatisation, certainly. But the key is recapitalisation,” Bajic said.
The director also said the company would add four new lines – the flights to Dublin, and Mostar (Bosnia and Herzegovina) will begin on May 3, and after that the lines Dubrovnik-Munich and Split-Copenhagen would begin as well.
“We have great expectations from the lines,” Bajic said.
(€1 = 7.41 kuna)
Follow N1 via mobile apps for Android | iPhone/iPad | Windows| and social media on Twitter | Facebook.
