The ailing national airline of Croatia has received a much need financial injection from the government to the tune of 13.5 million Euros. Croatia Airlines, which has been teetering on the edge of bankruptcy for years, will receive in total 33.7 million Euro from the state coffers in order to stabilise the company before recapitalisation.
Although Croatia Airlines has a monopoly of the few internal routes inside the country it struggles to compete with larger European airlines and this combined with questionable management has led to the airline needing constant handouts from the government.
According to the specialised website, EX-YU Aviation, the state cash is required as “financial projections for the next two years showed that Croatia Airlines would be unable to do the repair and overhaul of two aircraft engines without the support of the government, pay its debt to Croatian suppliers and finance other necessary investments.”
The airline is in the process of looking for a new owner and the first steps of the privatisation process have already begun.