Reflections on the first quarter
With financial results from the first quarter slowly being reported by EX-YU airlines and airports, the picture seems far from rosy. Croatia Airlines registered a 100.3 million Kunas net loss (13.8 million Euros) in the first three months of the year, compared to 5.3 million Euros last year, the “Croatian Times” reports. Total revenue in the first quarter stood at 274.4 million Kunas (37.8 million Euros), down compared to 335.9 million Kunas (46.3 million Euros) last year. Total expenditures were increased from 374.1 million Kunas (51.5 million Euros) in 2009 to 374.8 million Kunas (51.6 million Euros) in 2010.In April, the CEO of Croatia Airlines, Ivan Mišetić, said that the Croatian national carrier plans to halve last year’s losses which amounted to 199 million Kunas (27.4 million Euros). This was the highest loss in the company’s history. Earlier this year, Mišetić created a stir when he suggested that Croatia Airlines’ only savior from collapse was privatization. This was followed by rumors that the German Lufthansa, a long time partner of Croatia Airlines, might just buy out the national carrier.
If that is his only solution to saving the company then I guess he is trying to tell us that he is not the right person for the job!
ReplyDeleteI agree anonymous 1.
ReplyDeleteThe only thing that can save Croatia Airlines is sound and decent management!
Can I have a go please???????????
Just having a look ay Split webcam and noticed a large aircraft just arrived. I'm thinking its a 777 but could be a 767.
ReplyDeleteAnyone have any idea on aircraft type and where she came from?
@Q400
ReplyDeleteI think it's a Air Caraïbes Atlantique flight CAJ9600 arrived from Paris Orly ;)
Just search and you'll see :) btw- it's A330 :)
Eyjafjallajokull.
ReplyDeleteThat unpronouncable volcano in Iceland. Wouldn't it have been nice to blame this enormous loss on that?? (Instead, the 2nd quarter losses will)
Reality is, the airline has taken on quite a few new aircraft (debt repayments etc have to be factored in), extra staff/maintenance etc and costs have gone up at a time when travel has been in a cyclical downturn. But all of this without agressively expanding destinations and frequencies to recoup costs (ie putting the planes to use!), or leasing out its many aircraft which sit idle during the winter months.
The airline's whole strategy is WRONG - it's no longer 1995 in a newly-independent Croatia! You don't aim to be a business-focused airline in a country where tourism is one of your biggest markets. You don't give your competitors free run over your airports (just look at OUs pathetic withdrawl from DBV-UK market). You aim to provide seats into markets that there is a demand at affordable, competitive yet profitable prices, and you build on your reputation.
The company needs to do more whilst still protected from the government to build itself up (both financially and structurally) so when faced with real competition, it doesn't just go belly up.
Quite simply, you need people with a business sense and airline expertise to run a profitable and exciting operation. You don't put in political puppets...
I think Mr Misetic is doing a superb job!
ReplyDeleteConsidering his preavious job was that of a secretary at
El Presidente Tudjman office.
Thanks for the info JU500
ReplyDeleteYou're welcome! ;)
ReplyDeleteMisetic is an arsehole. Arrogant, big headed and corrupt. And Croatia Airlines, as I've been saying for years on here - has out of control costs and that's why it is losing so much money, no other reason.
ReplyDelete