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Croatia Airlines receives state support of 600 million

Written by  Dec 14, 2020

At a session on Monday, the government approved state support for Croatia Airlines, in the total amount of 600 million Kuna, of which 350 million relates to the recapitalization of the national airline, and 250 million to an equity loan.

The decision, in accordance with the temporary framework of the European Commission which allows member states additional assistance to the economy due to the Covid-19 pandemic, approves state aid for Croatia Airlines in the form of share capital increase and shareholder loan, in order to solve liquidity problems and capital recovery.

Minister of the Sea, Transport and Infrastructure Oleg Butković said that the coronavirus pandemic has had and still has a devastating effect on the global aviation industry, which is facing the worst crisis ever.

Croatia Airlines is no exception, said Butković, adding that the company recorded a drop in turnover of 65 to 90 percent compared to 2019.

However, he also points out that, as a state-owned carrier, it has a strategic role in Croatia's transport infrastructure, which has proven to be crucial in these times of crisis.

The government's decision addresses Croatia Airlines' need for immediate liquidity and capital recovery, and Butkovic also notes that the funds have been secured by this year's budget revision.

 

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