Croatia’s national airline, Croatia Airlines, is to be sold off by the government in cost cutting move. This week the government adopted the National Reform Program for 2018, which has the goal of increasing economic growth, and the sale of Croatia Airlines was in the program.
The sale of Croatia Airlines has been on and off the table for the past five years. In 2014 the airline was put up for sale by the government but no interested investors came forward. And then it was taken off the market with the Minster of State Property, Goran Marić, stating that “the Republic of Croatia must continue to be the owner.” This situation has been reversed and an investor is being sought.
In the first quarter of 2018 Croatia Airlines recorded a net loss of 84.5 million Kuna (11.4 million Euros) which compared to the same period from 2017 was a significant loss. In the first three months of 2017 Croatia Airlines has a net profit of 9.05 million Kuna or 1.2 million Euros.
In 2015 the airline went through a complete reconstruction process and this lead to a growth in passengers and ultimately an increase in profits. However, figures from this year mean that the airline needs fresh investment and a new partner.