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Croatia Airlines fails to find strategic partner

Written by  Aug 18, 2016

Last month, the Croatia Airlines' CEO, Kresimir Kucko, said that foreign carriers didn't show any real intention in acquiring a stake in the company, despite initial interest from Turkish Airlines. Unfortunately, the situation hasn't changed since.

According to the aviation advisory company Ishka, which analysed the carrier's business, it seems that national carrier will remain on its own, "Any expansion plans will undoubtedly require cash and a willing strategic investor. It appears increasingly likely that Croatia Airlines is going to have to try and manage its expansion plans without the assistance of a strategic partner''.

Even though a privatisation process of the national airline was started three years ago in 2013, it is becoming more than obvious that any progress in its sale will not be made by the end of this year. But despite the situation Croatia Airlines has initiated plans to expand its operations without a strategic partner.

The carrier has also decided to expand its fleet and destination network in 2017 by opening several new bases across the Balkan region. However, the carrier's advisory company Ishka believes that without impetus of external capital Croatia Airlines will face many difficulties and additional pressure with the arrival of new aircraft and with the launching of new routes. The Croatian national airline plans to buy four to six regional jets in 2017 and has ordered four A320neos, two of which are to arrive in 2021 and the other two in 2022. The new aircraft are expected to replace the existing A319 and A320 fleet as they retire.

The Voice of Dubrovnik


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