On Friday, the government approved 88.5m Kuna in state aid to Croatia Airlines to compensate for the damage caused by the Covid-19 pandemic.
State Secretary at the Ministry of the Sea, Transport and Infrastructure Josip Bilaver said that the aid was determined in communication with the European Commission, and relates to compensation for damages incurred in the period from March 11 to June 30 this year, in the amount of 88.5 million Kuna.
He emphasized that the coronavirus pandemic had and still has a devastating effect on the global aviation industry, which is facing the worst crisis so far, and Croatia Airlines is no exception.
Due to the pandemic, the domestic airline is facing a drop in traffic of 65 to as much as 90 percent compared to 2019.
Prime Minister Andrej Plenković said that this was an important decision that had been consulted with the European Commission.
"Since the entire sector is a big problem globally, this is a timely and correct decision of the Government," Plenković said.
The explanation of the government's decision states, among other things, that from March 1 to June 30 this year, Croatia Airlines was forced to cancel more than 8,000 flights, and from March to the end of June ticket sales fell significantly, with an increasing number of refund requests.