Croatia Airlines is preparing for a difficult summer season, which begins in just over two weeks. Although Croatia’s tourist season is likely to perform significantly better this year than last, bookings are not expected to pick up until later on in the spring. At this point, the carrier has removed flights from Zagreb to Barcelona, Bucharest, Helsinki, Lisbon, Milan, Mostar, Oslo, Prague, St Petersburg, Stockholm and Tel Aviv, which all operated in the summer of 2019, as well as from Split to Belgrade and Dubrovnik to Dusseldorf. Further modifications at this stage remain possible as the carrier alters its schedule in line with projected demand and market conditions.
Speaking at the Aviation Arena summit on the challenges facing the aviation industry, the head of Croatia Airlines’ Commercial Division, Slaven Žabo, said, “We have drafted several scenarios for the summer season, but considering the circumstances, which are changing on a daily basis, we will completely optimise our timetable in accordance to existing conditions and demand. We anticipate a better tourist season compared to 2020, but the question is when exactly it will start. It is already apparent it will not begin at the start of the 2021 summer flight season but rather in mid-May or early June. In line with those circumstances, we will optimise our capacity and will have to undertake a permanent optimisation process”.
Mr Žabo noted the airline has seen reduced summer booking volumes so far. “Unfortunately, we cannot talk about the post-Covid strategy for this summer because the coronavirus pandemic is still having a significant impact on aviation, primarily because of entry restrictions at border crossings within the European Union. Under normal circumstances we would already be taking bookings for the summer season and selling our capacity, however, these bookings are completely lacking this year. Already in February we saw a significant impact on bookings for the summer. We expect that late bookings will come, and we are ready for them at Croatia Airlines. However, it is questionable whether those late booking will be able to substitute the lack of bookings we are seeing now. It is obvious that the expected increase in demand at the start of the summer season, which coincides with the Easter holidays this year, is completely absent and we were forced to modify our planned timetable for this period”.
What does this mean?
ReplyDelete"We will optimise our capacity and will have to undertake a permanent optimisation process”.
They are terminating some routes for good?
Pretty much
DeleteProbably LED, OTP, HEL, LIS...
Delete"We will optimise our capacity and will have to undertake a permanent optimisation process"
DeleteSomething a company always does. You will of course read it like- They are terminating business. This sentence is just typical business bla bla.
It just means, there will be a lot of last minute changes. They have to be quick on their feet and adjust to constant changes COVID brings.
DeleteSo now they are cutting after securing millions in aid they will never repay? Very smart I would say.
ReplyDeleteCutting all that market from ZAG will be a massive blow to the airport, especially since LH isn't very committed to it anymore.
I really wonder how they plan to return "loan" they took in 2019 and beginning of 2020 in total of 34 mil EUR if they cut the routes so heavily in the most important part of the year?
DeleteThey don't have to worry about it because the government is the guarantor so it's taxpayers that will take care of it.
DeleteI just wonder how it will be presented to EC knowing it was direct financial help that had nothing to do with pandemic.
DeleteHDZ is cozy with EPP so nothing will happen.
DeleteI am sure Malev, Estonian and Cyprus Airways had the same idea...
DeleteI miss Malev.
Deleteeverybody in East Europe does
DeleteWell there is LO now which is better than MA was.
Deletevery debatable
DeleteUnderstandable, there is just no demand.
ReplyDeleteNo wonder ZAG is looking to make a deal with LCCs, they probably knew this was coming.
ReplyDeleteWow. This is huge.
ReplyDeleteThis result is even worse if we conclude that Croatian citizens do not have EU entry ban.
Crazy to think an EU capital city won't have nonstop flights to ARN until summer 2022. Time for Wizz Air to launch ZAG-NYO. Or maybe SK could look at ARN-LJU which has lower costs and a richer customer base?
ReplyDeleteWell it is not as if Wizz is doing better at the moment. There is NO demand. Wizzair customers paying 10 EUR need to pay 2 PCR Test which are 200EUR. So the price is not important..
DeleteSOF and LJU have no ARN flights as well.
DeleteBTS
DeleteLIS as well.
DeleteThese routes are basically their expansion since 2016.
ReplyDeleteWiped out :(
DeleteSame as JU. Their 2019 expansion has mostly been undone. It makes sense. These routes probably had the least time to develop and turn a profit.
DeleteOf course its been undone. There is no demand, what should they do? Fly empty for the whole year just not to undo something that was valid in the height of the aviation?
Delete2016 and 2019 aren't the same
DeleteDidn't they get money to fly to Mostar?
ReplyDeleteSo did Eurowings but they suspended one of the two routes a year later (before pandemic).
DeleteDid they pay the money back?
DeleteI don't know but somehow I doubt Mostar Airport paid the sum up front. The airport barely has any money.
DeleteIts not Mostar Airport who is paying Croatia Airlines to fly from there, its the Bosnian Federal Government, with the money collected from Sarajevo Airport taxes (crazy)... Im happy these taxes in Sarajevo are finally abolished now, and all money from Sarajevo Airport will be focused at Sarajevo Airport.
DeleteI agree with the anon 10.38. Legal action should be taken against OU for breaching the terms of subsidies, thus demanding the subsidies to be returned. Not for the sake of the money-it's peanuts anyway-- but rather for the sake of principle.
DeleteI'm pretty sure COVID crisis would be covered under "force majeure" clause which these kind of contracts have.
DeleteAnd no single new route...
ReplyDeleteYes, this is unfortunate. I am sure some opportunities presented themsleves as a result of Covid. Some unserved route became more popular. But OU is in deep sleep.
DeleteSad to hear about lack of forward bookings but makes sense in such circumstances. Hope things improve.
ReplyDeleteHope for the best.
ReplyDeleteCan we get the map of their summer network?
ReplyDeleteA route they could and should have introduced was Podgorica. There was quite a bit demand for this route last year. They also could have capitalized on Air Serbia being absent from the market for a while. They were supposed to launch Podgorica last year but cancelled it. Missed opportunity.
ReplyDelete+1
DeleteI was hoping this situation would wake up the management and that they would seize some opportunities as they have left many slip but nothing came of it of course.
DeleteLJU is the real missed opportunity for them.
DeletePodgorica is overrated but LJU is tricky its only 2 hours away from ZAG, they could have stil fed star aliance hubs from there
Deletelol TGD is too small of a market to be even considered a missed opportunity. I agree with previous comments, OU missed out on capitalizing on LJU but also on SJJ. Both airports are left in dismay and there is some potential to be extracted from both airports
Deleteas long as people willingly comply and accept this "pandemic", things will only get worse before it gets better If ever does... Less then 1% of fatalities. Does this dictates global economy shutdown, lockdowns, grounding of half of aviation fleet and so on ...?
ReplyDeleteOnly aviation that is thriving at the moment is cargo.
With implementation of covid certificates and passports, it is going to be tougher for people for travel and therefore no airline is going to fly empty routes. If you put aside UK, US, Israel and Serbia, not many countries are anywhere close to massive vaccination ...less then 10% on average. So is really going to fly?
Hello! I'm interested for the ZAG-DBV-ATH route. Does anyone know if they are gonna keep it?
ReplyDeleteYes, its scheduled.
Delete...for now.
DeleteI hope things improve
ReplyDeleteThey are pretty much drafting their schedule on a month by month basis so I'm sure some of those will be back.
ReplyDeleteAnd when will they have a time to sell the tickets then?
DeleteYou might want to read what everyone is saying, even their commercial director in this article. Bookings are being made extremely late, even the director from your favorite airline said the same and launched a new route a month before flights started. Booking are being made 7-10 days prior to travel.
DeleteGood luck with that.
DeleteYou will need it with your favourite airline :-)
Flydubai is starting flights to Tirana on 28th March and put tickets on sale yesterday (less than 20 days before flights start).
DeleteOU needs to grow a pair and take a damn risk. Put the flights on sale so that people can buy tickets. How will you make money if you are not offering flights.
DeleteIt seems to be difficult for some people to understand
DeleteThis is a VERY long list of cancelled routes.
ReplyDeleteSo they are just giving up on Lisbon? Yet TAP seems to think there is a market.
ReplyDeleteThis is tragic.
ReplyDeleteIt wouldn´t be tragic if you used your credit card and booked some flights to those destinations with them.
DeleteFor years now OU's strategy was to rely on LH Group hubs and to feed their growing networks. Judging by the planned summer timetable, that won't change any time soon.
ReplyDeleteThat's what I don't get. That strategy has not worked for them financially. Why not try something else.
DeleteOUs problem is not flying at LH hubs at all but is nonsenese timetable. Flying 2 daily to ZRH from ZAG with q400 or flying from ZAG to AMS with A320 all year round doesnt have any sense. Capacity and frecuencies should be the lowest at January, February, March, something higher at April and half of May, highest from May to September, something lower at October, even lower at November and something higher in December due Winter holidays. When they do that, they will become profitable.
Deletelet me add something to it (im not from HR) its not just frequencies but more the non optimal waves if they can be called waves at all. They should optimize them to enhance connectivity
DeleteI agree with anon 10.11
DeleteCroatia Airlines will get all the money it needs to survive and will never go bankrupt. I'm not too concerned about them.
ReplyDeleteOU and CRO Government are not the only one being asked in this case...
DeleteI agree. Croatia Airlines will be around for a LONG time!
DeleteCovid-19 made things much easier for Croatian Government, no more EU restrictions on funding, so they can fill money into OU at will for many years to come.
DeleteMontenegro Airlines had the same idea
DeleteProblem is not OU, in my opinion but it's ZAG. They are the only remaining airport in the Balkans and eastern Europe that is relying on an inefficient and dying dinosaur. Even TIA got its dose of reality and it reformed itself. They are even getting FZ from Dubai from March and last year they managed to overtake ZAG!
ReplyDeleteTLL, RIX, VNO, WAW, KBP, LWP, CLJ, OTP, BEG, SOF, TIA, SKP and even SJJ have all reformed their business models to incorporate LCCs into their business model.
What has ZAG done? They sat waiting for OU to grow and dreamed of some exotic long-haul flights while losing non-stop flights to places like DUS or TXL!
So in conclusion, we should not be angry at OU, they can't do better but ZAG can and they should!
+100000
Deletemakes no real sense your comment. OU is cutting 14 routes and its not problematic ? which means you aprove it? This is an article about OU regardless if ZAG gets lcc or not OU should get their act together
DeleteI am saying OU is yesterday's news, they have no future because they missed all of their opportunities. ZAG on the other hand is sleeping and is paying for that. They were overtaken by both PRN and TIA, that is enough of an alarm for them to wake up.
Deleteyou are forgetting that the main draw for airlines in Croatia is the cost. low cost can never achieve 10+ based aircrafts in ZAG
Deletecoast*
DeleteIf they can have five LCC planes in SKP then they can in ZAG as well.
Deleteonly if there is no competition which i doubt.
DeleteI think ZAG has been focusing more on 4-5 star airlines because of its image and prestige. There was a point where you had flights with EK with their 777, KQ, TP and so on. It also had connections to both Eastern Asia and North America.
DeleteZAG is simply not into the LCC model.
That worked out well. Now it has nothing.
Delete"I think ZAG has been focusing more on 4-5 star airlines because of its image and prestige."
DeletePrestige... It's a small regional airport at best. Look at FRA, even they have LCCs there.
Smart airports, particularly smaller ones, take all the business they can, instead of focusing on "prestige".
I am contemplating how to process the ZAG prestige argument. Such a ridiculous notion to entertain. Prestige based on what exactly? Is it the new, recently built terminal building or a 'prestigious legacy' airline such as OU?
DeleteYes, ZAG has a very modern airport compared to the other airports in the region and also the type of airlines are mainly legacy and upper class. KQ is a very good example.
DeleteKenya Airways never flew to ZAG. Everything you wrote is BS and typical attitude of the person whose World ends in Graz
DeleteWho is KQ?
DeleteBelief that Zagreb airport has some prestige and discussing it repeatedly is a sure way to detract from real issues. Insisting on prestige argument is actually damaging to the airport as real problems are being avoided.
DeleteThese entry restrictions are really having a terrible impact on airlines.
ReplyDeleteThey aren't the same for all.
DeleteBan entry and PCR condition for entry are 2 very different conditions.
Croatian citizens are not the only ones flying Croatia Airlines. In summer they are a minority.
DeleteMaybe but the majority belongs in that case to the citizens of the countries which do not have entry ban to Croatia and could fly freely to Croatia and back.
DeleteIn any case it should be good for OU, but it seems they can't capitalize it.
You live in a fairyland if you think demand is anywhere near what it was. If you think people are willing to fly, if you think people don't have to do expensive PCR tests (which in some EU countries are barely available unless you are actually feeling sick), if you think people have the same or more money than before. If you think all this is the case then European holiday airlines would not have drastically cut frequencies and capacities. Not to begin talking about quarantine requirements upon return home.
DeleteVery bleak summer for everyone in terms of flights and passenger numbers.
ReplyDeleteConsidering the circumstances it's understandable
DeleteConcerning the circumstance that Croatia has a very long warm coast and that Croatia is in EU it is surely not understandable.
DeleteYou are right. Europeans are travelling in record numbers because there is no pandemic, no PCR requirements, added costs, no capacity restrictions, no bans on non essential travel, no financial crisis. Of course even before non existent pandemic only Europeans travelled to Croatia. No Chinese, no Koreans, no Australians, no south Americans. So its surely not udnestandable like you say.
DeleteDo you live under a rock?
Not just that but European travelers have plenty of restrictions when they come home if they have been somewhere on holiday. If you are travelling to the Netherlands you have to find to do a rapid antigen test somewhere maximum 4 hours before your flight and pay for it. In some countries you have to go into mandatory self isolation when you come home. In the UK you have to go into hotel quarantine.
DeleteIt seems you are not reading carefully the posts here.
DeleteIt has been written "it is very bleak summer for everyone" and it is simply not truth.
It is not the same if you have warm long coast and if you don't have it. It is a magnet for tourism even during pandemic and it is huge benefit for certain country. Didn't Croatia spread around the news that they had last year 70% of touristic capacity from 2019 used?
It is also not the same if your ctizens could fly to EU and if they can't.
These are real benefits / obstacles for those not living under a rock.
Not having tourism before covid, and not having tourism during covid poses little issues. When the majority of the country's economy depends on tourism then covid has much bigger impact then those that don't.
DeleteThings are slowly improving and Greece is leading the charge. The other day it was reported that this summer there are already one million seats offered between LON and ATH. When it comes to tourism, I think Croatia can learn a thing or two from Greece, the real master of tourism. It's now that you need to work on getting flights so that people can book especially those that are not going via agencies.
DeleteExpected unfortunately
ReplyDeleteThe losses must be huge.
ReplyDeletewhere is the cold shower commentator from yesterday
ReplyDeleteIdeal opportunity to base a few more planes in SPU and fly vaccinated tourists to the coast.
ReplyDeleteWell Europe is trying to be more eco-friendly with less flights. This makes sense. It's time people got used to taking the train more.
ReplyDeleteNo, it doesn't make sense. Taking into account all polluters around us the only way to become eco friendly is to go back in 19th century. If you take a look at impact of aviation on overall CO2 emission in the world you will see the aviation transport is the most efficient way. Don't forget that due the lack of flights people will travel with private cars, increasing CO2 emissions even more.
Delete"If you take a look at impact of aviation on overall CO2 emission in the world you will see the aviation transport is the most efficient way. "
DeleteMore CO2 efficient than an electric train powered by renewable energy? I'd love to hear that explanation.
OU is cutting all these routes to be eco-friendly, nice
Delete"More CO2 efficient than an electric train powered by renewable energy? I'd love to hear that explanation."
DeleteAnd how is that more efficient than flying with sustainable fuels+new engine options like some airlines already do? Plus taking into account the journey length with a train that will be half empty as no one has that much time to travel for a day with a mask on. Lower train utilization increases CO2/pax while airlines always have an option to utilize their flights by choosing lower capacity aircraft.
How does an electric train generate any CO2 at all?
Delete"How does an electric train generate any CO2 at all?"
DeleteI am sorry but you will have to do a research about the prinicples of electric train and the way electricity is generated and you will see that even electric train operations are still emitting CO2.
Read above... "powered by renewable energy".
DeleteI'm not a train expert, but I'm pretty sure even the most modern aircraft emits much more CO2 than an electric train.
Absolutely agree, electric train is much more environmentaly friendly than the most modern plane. And as much more ecologicaly acceptable, and going center to center, and with more short intermediate stops, and with the speeds which year by year are becoming almost plane speeds, I believe the future is in favour of train, speaking of short-haul. However, medium and long-haul will never be possible to operate by train, no matter how ecologicaly friendly, and will always need to be operated by plane. That's just one more reason why I, when I speak of OU, stress as biggest mistake their incapability and unwillingness to start long-haul, on the market with the biggest long-haul potential even now, not to mention future, on entire space between Turkey/Greece and Austria/Italy
DeleteAnd how many employees, and i mean backend sitting in the office, are they planning to optimize?
ReplyDeleteI am sure they will optimize uhljebs as well. They will "hire" more because all those optimizations on daily bases require more "skilled" and "devoted" workforce
DeleteLet´s please stop saying there is no demand. Within the last 3 weeks, I flew Lufthansa, Air Dolomiti & Turkish Airlines flights: they were more than 85% full, and it was a mix of business travellers and normal flyers. Once more, many airlines (companies in general) have been taking HUGE advantage of this situation since months. COVID-19 has represented the perfect occasion they were waiting for to cut costs whenever possible. Trust me, after more than one year, people do want to get back to their normal life ASAP, which includes holidays & travelling.
ReplyDeleteYour flights were full because the frequencies that existed before no longer exist. So instead of 3 daily flights airlines are operating a few weekly. So no, there is no demand.
DeleteYou do not even know which routes I flew.
DeleteI don't have to know. I can guarantee you that there are significantly fewer flights on those routes than in 2019.
Deletehahaha anon13.42 that's insane ... i was at Zurich airport, Vienna airport, Dusseldorf airport and Frankfurt Airport in the last 14 days. AND THEY WERE ALL EMPTY! so yeah, there is definitely no demand at all ...
DeleteWhy do we even have an airport? Flying to Zg is the most expensive flight. You can fly across the world for the ticket Brussels-Zagreb.
ReplyDeleteWe could have been happy with old Pleso and more connections, maybe even RA or some other low cost. But noooo lets have grandiose (ugly) and empty airport where you can't even buy water in the duty-free
Yesterday I purcahsed ticket from Dublin for 01.08. It said only 6 seats left.
ReplyDeleteToday this.
Dublin plane is always full in summer months. I dont get it.