Croatia Airlines’ decision to acquire six new Airbus A220 aircraft and transition to a single-type fleet by 2026 is aimed at transforming the loss-making carrier into a more efficient and competitive business, which will also impact its network development and enable the company to reduce seasonality. “This aircraft is right-sized for smaller single-aisle markets. It will enable Croatia Airlines to replace older generation aircraft and to operate on thin routes while opening new destinations”, Airbus said. It added, “If you compare the A220 to older generation aircraft, Croatia Airlines will be able to operate with 25% lower fuel burn. That is what counts - being able to operate efficiently at lower cost. This 25% lower fuel burn also means 25% lower CO2 emissions”.
Croatia Airlines plans to undertake a similar strategy to that of airBaltic, which also transitioned into an all A220 operator. The Latvian carrier’s CEO, Martin Gauss, said, “Our shortest sector is similar to what you have in Croatia too. We use this aircraft on thirty-minute sectors and very long flights as well. airBaltic was in difficulties when I joined in 2011. One of the first things we had to do is select an aircraft for the future and at that time we decided to go for the Airbus A220. In 2018 we made a strategic decision to operate only one aircraft type. At the start of the pandemic in 2020, we accelerated this decision. We had a Q400 operation - twelve of them. We decided to no longer use them because, for us, the business case to fly the A220 instead of the turboprop was positive”. He added, “People ask us, how can you use a 76-seat turboprop and replace it with a 150-seat jet, but we are proof that it can be done. We had a positive business case on all the routes we fly”.
Details of Croatia Airlines’ planned order have not been revealed, however, the carrier is expected to operate both the -100 and -300 variant of the A220. The airline said the two will have the capacity to seat 127 and 148 passengers respectively. Despite Croatia Airlines currently boasting thirteen planes in its fleet, while only six new jets will be ordered, it is believed the deal will include options for additional aircraft. Similarly, airBaltic reduced its initial fleet size when it retired its Dash and Boeing fleets in favour of the A220. Currently, Airbus is producing six A220 frames per month with plans to ramp up production to fifteen per month by the middle of the decade. Croatia Airlines has said renewing its fleet is part of its “strategy for success” where it plans to radically turn around its business in just a few years.
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Bravo Hrvatska!
ReplyDelete+1000000 Bravo Hrvatska, Bravo OU!
DeleteAgain that neomalthusian narrative about CO2...
DeleteI would really like to see how the airplane will change this sespool...
About the "sesonalllity": this is always being used as an 'argument' to justify their incompetence. There are companies that never have a high yield period and they are still profitable. There is a saying in these EX-YU parts it starts with:" Rđavom..."
So they want to go from a carrier that's losing money with old planes to a carrier that is losing money with brand new planes? Gotcha
ReplyDeleteThey will be losing money like the other two exyu airlines.
DeleteUnlike them they will be flying new aircraft.
yep, everybody's losing money, but more importantly for many here, each of these small countries has their own national carrier.
DeleteAlternative is to have a scenario like in Sarajevo where you give incentives and fill the accounts of a Hungarian airline that can pack up and leave whenever they feel like it.
DeleteFunny guy, old planes, new planes... Zavist ubija.
DeleteI'm interested to see how it will work for them doubling capacity on most routes. But if air Baltic made it work maybe OU can too.
ReplyDeleteExciting times ahead for Croatia Airlines. I just really hope this doesn't end up like the Adria orders for the Sukhois.
ReplyDeleteNo matter how it ends, at least something is finally happening at OU.
DeleteNothing is happening. It's PR BS. They will continue feeding Cartel and making losses, just with more expensive aircraft. What they say now is just an excuse for political decision on 220, the same as earlier political decisions on fleet change /renewal.
DeleteOf course, this is a political decision to improve economic and political relations with Canada. We all know how important Canada is for Croatia ;-)
DeletePolitical decision to remain Cartel feeder. Don't pretend to be stupid as you probably are not, and don't try to be funny, because remaining pathetic feeder and humiliated servant is not funny at all
DeleteWas the purchase of the Dash 8-400 also a political decision and what were the reasons for this? Why not take the European ATR72.
DeleteWho could expect that pozdrav would be upset again? :D :D :D
Delete"remain Cartel feeder" možeš biti i sa A319neo ili E195 kao Air Dolomiti. Zašto A220 je Political decision i lošiodabir?
DeleteQ400 was not purchased. It was lease. Actually double lease, where company related to Misetic is mediator in lease. It's worse than political decision. It's crime and corruption. My point is no single move in OU so far was made to make company bigger and better, but only for the particular individual interest sponsored by politics and politicians. It's exactly the same with 220. So sorry you refuse to accept it or not capable to understand it.
Delete@An.11.21
DeleteI am not upset at all. I am just sad some people defend crime, corruption and incompetence
@An.11.25
Zato sto se umjesto 10 220-ica moze nabaviti 15 Embraera. Zato sto se narudzba za 320 neo mogla promijeniti u 321xlr, umjesto na 220. Zato sto je ovo bila zadnja sansa za pocetak rasta koji se sa ovim preskupim feeder avionom nece desiti
We are very lucky to have a vigilante for justice fighting crime, corruption and incompetence.
DeleteLike a Slavic Batman!
E195-E2 is certainly a very good aircraft. But there's a reason the A220 has more than three times as many orders. And the difference will grow
DeleteI sa E195 možeš biti feeder kao i sa A220. Isto kao što i možeš biti neprofitabilan sa A321XLR.
DeleteI odakle Vama informacija po kojoj cijeni aviokompanije kupuju avione?
Rijeka, tablete... nije ti dobro. Zašto se ne odseli ako je tako loše? I puno bolji od tebe su otišli...
DeleteMeni nije dobro i trebaju mi tablete jer ukazujem na to da je Kradeze otjerao pola milijuna mladih, pametnih, skolovanih i sposobnih ljudi, unistio svaku mogucnost nacionalnom zracnom prijevozniku da bude bilo sto drugo doli ponizni i ponizeni sluga Kartela i jos mnogo mnogo toga? Pa da li se Vi uopce cujete? Da li uopce mislite o onom sto pisete? Ili samo treba ispuniti naputke Sredisnjice, uz slasni sendvic?
Delete@Anon 11:20, about the purchase of DH8q400..
DeleteYes it was a political decision. Explore yourself when the talks on abandoning the visa regime with Canada started, when they were concluded, take a look who took part in them, who was the foreign minister, who was on the s.c. supervisory board...
Conclude yourself.
so, what’s an A220 cost to purchase nowadays?
DeleteWhen are first deliveries expected?
ReplyDeleteNext year
DeleteThat's really quick. Looking forward to it.
DeleteNot next year, Airbus delivery guarantee is 18 months, so sometime in Q1 2024.
DeleteNext year.
Deletepurchase price anyone?
DeleteThey should place two or max. three of them in LJU.
ReplyDeleteWhy don’t Slovenia and Croatia have one carrier together for both countries? Like SAS, airbaltic,…
DeleteAnd it's so easy for OU to launch a base in LJU and take advantage of EU law. It can become what Air Baltic is in RIX and VNO.
Delete@9.12 there was this plan around 10 years ago. I remember reading about it here but it was shut down by Croatian politicians.
DeleteSorry I stand corrected, not just Croatian but Slovenian politicians too
DeleteSource: https://www.exyuaviation.com/2015/02/croatia-airlines-adria-merger-blocked.html
Croatia Airlines and Slovenia’s Adria Airways, which are now seeking strategic partners as they undertake their second privatisation effort, could have merged in 2012 had the Croatian-led initiative not been blocked by the governments from both countries. Initially, Adria proposed for all of the national carriers from the former Yugoslavia to boost ties and consider merging their operations in early 2012, however, the idea was struck down by Croatia Airlines, which at the time saw no interest in joining such an alliance. However, midway through 2012, the carrier suggested to its Slovenian counterpart to join forces and merge their operations into a single carrier, which could have created a strong airline in the region, reaping the benefits of operating bases in two different markets.
Interesting. Thanks for the link
DeleteWhat about merger with airBaltic? Maybe that is good opportunity for them. They get few planes from airBaltic order, know how, maintenance and crew training. And especially know how how to fight Ryanair.
DeleteAnd what would airBaltic gain from this merger?
DeleteI also don't see where would be the synergies between the two. They don't even have a codeshare agreement at the moment.
DeleteAre people going to stop spreasing fake info here? Air Baltic is not a national carrier of Lithuania and Estonia but only of Latvia!
DeleteBecause Slovenia does not have a carrier??
DeleteLooks like they have a good and ambitious plan to transform theirselves in a regional leader.
ReplyDeleteThe A220 would allow them to cover the entire continent and comfortably reach Dubai or Tenerife.
Definitely a start of a new era in Croatian aviation.
This is OU we are talking about. They have the fleet to cover the whole continent and comfortably reach Dubai and Tenerife right now.
DeleteI hope so. But is it possible for them to expand much with just 6 planes? I do see there will likely be options for more but activating these options will take time.
DeleteThere will be at least 12 (replacing current fleet), 6 is just what they managed to get for that money they paid for A320NEO order
DeleteSo if this plays out, just like I'm hoping it will, than we'll see OU on fire. With this new planes,they can fly for 30 min or longer with tickets from £39 one way with full planes!!!!! Open many new routes, schedule the morning flights to West with all those transfers from Middle East, Balkan, Africa etc and you'll be fine....Timing is critical here baby for those transfer to catch they next fly piggy from London, Amsterdam, Paris or Madrid.....This has to be implemented because small Croatian population just cant fill those planes. OU needs to catch transfer passengers too so they can be successful. Don't get me wrong they should have done this ages ago but the incompetent management have no clue how the busines works here. So OU, wake up and get to work. We all wanna see you doing better instead of being a lazy airlines with a 1000s of employees. Oh yeah, you need to get rid of half of your staff too.... If this happens, fingers crossed, then we'll finally see some spirits awaken. If not, ah good night, please go bust so that I don't have to get stressed out any more.....
DeleteIm giving you a free advice how to operate and compete on your turfs so try to save that money you paid to Boston consultancy firm unnecessary.
* to catch their next flight from London... Sorry. Ignore piggy, Typo.
DeleteGood luck. At least some positive development in a sea of missed opportunities.
ReplyDeleteI really hope this will kickstart things at OU. It is much needed.
ReplyDeleteIt is still too early.
DeleteWhy such a focus on fleet?
ReplyDeleteThey are focusing on fleet because it's old and unsuitable for OU's needs. The idea is to make the airline profitable.
DeleteFor which needs exactly the fleet is unsuitable?
DeleteTouche! If only he understood it 😃
Delete@Plane Mad
DeleteOf course it's good to fly new and fuel efficient aircraft instead of old techology. You obviously didn't understand what @An.10.05 was talking about. No new aircraft will change anything in OU or make it profitable. Much more is needed.
A319 is proven money-maker, something A220 is yet to achieve. I don't think flying A319/A320 is more problematic than OU's business model.
Delete@Plane Mad
DeleteNow compare Q400 flying with barely 15-20 pax in the winter, with 127 seats A220 on the same route.
Another touche! Congrats!
DeletePlane Mad (I would rather say Plain Mad), I have only one thing to say: when they asked CEO of American Airlines, why they were still utilising their MD-80 fleet, he said - MD80 on first day of the month starts making profit (as it has been paid off long time ago), whilst B-737 800 starts a month with debt of 800.000 USD.
DeleteSo the entire existing fleet will be retired within 4 years?
ReplyDeleteYes
DeleteYes, whole Croatia Airlines will be retired in 4 years.
DeleteWonder if they will use this opportunity for a new livery.
ReplyDeleteThey just refreshed their livery 3 years ago
DeleteWill the crew have to have extensive training to move from the A320 to A220 or are they similar?
ReplyDeleteI mean pilots
DeleteTransition training lasts a few weeks.
DeleteThey are finally waking up!
ReplyDeleteNext step is to change management and then some changes are sure to come.
DeleteWon't happen anytime soon. Bajic was named as CEO for the next 5 years just in March
Deletehttps://www.exyuaviation.com/2022/03/croatia-airlines-gets-full-term-ceo.html
How much will this cost?
ReplyDeleteThey will get loans, government support, they will sell existing aircraft and they have an old deposit at Airbus.
DeleteOU regularly publish their financial results which they are required to do by law. In this instance they are obliged to publish the records by law, whether you believe it or not.
Deletelist price is 90 million dollars for the A220-300. B6 ordered 60 at around 60 million dollars per plane.
DeleteThe good thing about the A220 is its range. Meaning that they may even fly to DXB if they wish.
ReplyDeleteThey can easily do DXB with A319 or A320 as well.
DeleteWith A220 they have less seats to fill and operate with significantly lower costs.
DeleteWith A220 they have almost the same number of seats as A319 to fill and operate with lower operational but much higher leasing costs. They will make something out of this only and literally only if they hire professional management ASAP. That's conditio sine qua non.
DeleteWithout their dashes they can’t be profitable only with the A220’s there are some routes that need smaller aircrafts.
ReplyDeleteAircraft.
DeleteHope this means that Croatia Airlines Technics will also get certification to maintain the A220s.
ReplyDeleteNo, they will obtain certificates for B737.
DeleteThe way airBaltic's CEO is pushing for more airlines to get the A220, I wonder what's in it for him. Maybe he hopes to get Croatia Airlines as a maintenance customer, at least for heavy maintenance?
DeleteHow much maneuvering space do they actually have? Will there be enough time to poor extra money in the company through ways creative enough to avoid EU rules… or to phrase it better, in line with EU rules?
ReplyDeleteCroatian government has avoided EU rules on several occasions and EU seemed to have no problem with it. So I think the same philosophy will prevail.
DeleteIt is not fair if we remember that EC did not turn blind eye to Malev, Cyprus Airways, Estonian etc.
DeleteA220s are great planes and it is a nice feeling flying on them. They are also very comfortable for passengers.
ReplyDeleteYour personal opinion. I flew it with Air Baltic and didn't like it. With half empty plane and good weather.
DeleteThat's just your personal opinion. What exactly did you dislike about the plane and which one do you like better and why?
DeleteWhat exactly did you like about it and why you liked flying it? I just wrote the same sentence as you did. When you explain why you like it and what differs it from others, I will write why I don't like it
DeletePozdrav it would be really easier for all of us if you just made a list with all the aircraft we are allowed to like and find comfortable.
DeleteI'm not Anon 09:48. I just wanted to hear your opinion because I'm interested. Excuse me, won't happen again
DeletePiR 11:12: Is that really the level we are discussing here? Seems like in kindergarten, who has the last word. Reader writes he finds the A220 very comfortable. You write you can't find it. It would be interesting why not and which plane they find better. Of course, this is always a subjective personal opinion. But that's what a discussion is about. And not about who is right here.
Delete"When you explain why you like it and what differs it from others, I will write why I don't like it"
DeleteAlways the same from you.
He didn't like it because it fits his narrative.
DeleteI really like people who, when someone says : "this is white", they don't ask why he or she says it's white, despite it might be other colour, and simultaneously, the other who says "this is black" is asked thousands questions and treated with several offenses for his claim, despite colour in question is uncertain. Nothing else to add.
DeleteRijeka, stara esdepenjara, sjedi u riječkom poglavarstvu i ništa ne radi po cijele dane osim prosipanje mržnje.
DeleteRijeka nikada u zivotu niti jedne sekunde nije bio niti u jednoj stranci. Za razliku od vecine SKJSKH clanova koji su preko noci postali Kradezeovci i priustili nam Janaf, HGK, Agrokor, INU, iskreno se nadam uskoro i Croatia Airlines. A "govor mrznje" je standardna fraza koju Kradeze koristi kad god netko od obicnih ljudi poput Rijeke ukaze na njihov kriminal i korupciju.
DeleteI have flown the A220 a handful of times. Always operated by airBaltic (both as their own flights, as SAS and Eurowings). On my last such flight (yesterday), an elderly couple were commenting on how nice and spacious the aircraft was, how much more impressive than the mainline Eurowings A320 aircraft they transferred from it was. Later during the flight, the wife told the husband that she had chatted to the purser after she was in the lavatory and that she had complemented the aircraft. The purser had then explained that it's a new aircraft type. So the A220 seems to do well even among people who aren't aviation geeks. Pozdrav is the first one I hear with a negative opinion.
DeleteOverall, OU seems to be going towards capacity downscaling. Smaller, more economical planes. In the long run, it's aspirations will be limited to developing into a notable regional player, but nothing more than that.
ReplyDeleteThey have no intention to become bigger and regional player. BCG was called and instructed to "consult" within given frame of remaining servant and feeder. And it's precisely what's happening. Cartel passengers will fly new and ultra expensive aircraft paid by croatian tax payers. And yes, probably capacity downscaling will happen, it is what has been going on since twenty years ago
DeleteYour personal opinion.
DeleteIt's not my opinion. It was published, this blog included, when they signed with BCG.
DeleteI suppose Pozdrav you would rather OU fly 40 year old Boeing 737's.
DeleteNo comment
DeleteThis way it will officially become the new Air Dolomiti.
ReplyDeleteHow so exactly?
DeleteNo, it will NOT, unless LH buys OU.
DeleteWhat about Croatian PSO? It is great stream from state budget into OU through it. Would they operate routes under PSO with A220 fleet? Lets say OSI-ZAG and many others?
ReplyDeleteAfter reading comments from OU as well as from here (interestingly, the same message out of them!!!), one would say that for the airlines to become profitable they need to have brand new one-type fleet.
Interesting and very innovative approach!!!
Yes they would operate PSO with A220. Why wouldn't they? The costs of those flights are fully covered.
DeleteIs there any limits in handling A332 at OSI?
DeleteTrade air will fly PSO route OSI-ZAG
DeleteGood news for the Croatian aviation industry.
ReplyDeleteThe end is near!
ReplyDelete+1
DeleteI agree. Continuing to be Cartel servant and feeder, with crime, corruption, nepotism, incompetent management, excessive administrative working force, lack of vision and initiative, lack of strategy, inertness, mindset stuck back in 50's, and new loans for new super expensive aircraft, too big in capacity for most of the services they operate, there is no way they become profitable. The end will come if and when politics decide about it, which I don't see happening soon, but might happen once Kradeze is past and people responsible for all of the above listed convicted and inprisoned
DeleteWinter is coming too!
DeleteSame with the A320neo order...
ReplyDeleteVery expensive aircraft to operate.
ReplyDeletethis is just carevo novo ruho (The emperor is naked!), same thing happend with Adria, first time internal pressure group lobbied for CRJ200 fleet and purchase (!) of 2 A319, which brought company to its knees. Then 4K came along, and there were news of fleet renewal and training and then it was the end. You can't make airliner better just by swiching the fleet! It makes no sense! Its like building a house which can accomodate x people and you even don't know how many will live there! I also think the end is near, maybe not total, but in shape of Dolomiti fate. It is beyond my understanding how come so powerfull touristic destination with diaspora all over the world and in such favourable geo-strategical position, is unable to have strong national airline with diversified business model (which would include busing, boat transfers, charters, everything under the sun). Look how Aegean turned from charter to big national carrier! True, the fate of ill managed Olympic played major role, but nevertheless....I can feel with pozdrav, as exactly same path was taken by Adria and we were only watching helplessly the slow demise into abyss. This is now happening with Croatia. And when another plea for financial help will arrive from Croatia, suddnly everybody will be stunned to learn, that it is no longer possible and that default is the only solution. True sad story!
ReplyDeleteSo, your hypothesis is that someone (Lufthansa?) is pushing for OU fleet renewal so the company goes bust due to increased costs and no financial backup from Government/EU? Didn't think about it but who knows...
Delete@Anonymous16:14
DeleteNobody pushes anybody .It is the corrupt, dishonest, oligarchic debt based financial system that is pushing to commit financial suicide. The system promotes corruption where most corrupted end on the top by the nature of the things. If the system promoted honesty and competence then by the nature of the things these qualities would come on the top.
Lets put this way and instead of A220 you are looking to buy t-shirt: if you go shopping would you look around? Would you look for the best possible deal? Would you pay significantly more or less for the similar t-shirt? Would you ask your parents (taxpayers) to pay for your t-shirt?
@Anon 16:14, I don't think anybody is pushing (although I don't have all information), it is pure internal stupidity and corruption. Lufthansa is just waiting and reacting (at least in cases of Dolomiti, Brussels, Swiss and Austrian).
DeleteNotLufthansa, and funny but rather sad fact is that the "right hand" of Wunderkind at JP is now manager strategy at OU, what to expect
DeleteI really don't get why Croatians are complaining. Yes, OU is not LOT nor is it Aegean by any means. Does it have an okay network? Well, yes it does.
ReplyDeleteWhy would you criticise an airline that is trying to bring down its costs by having the same aircraft type and preferably family? Also, Croatia is a European country and an EU member. If it wants to sustain the European economy it is logic to choose a European brand even though it helps Canada in this case.
Let them get rid of the old-fashioned A319s and Dashes and let them use an aircraft that is just in between such as the A220, which is a very good aircraft according to many airlines including American ones.
I mean, for God's sake, even ITA Airways now will also use the A220.
I just don't understand the people. When OU is not doing anything you complain all the time and now that it wants to enhance its fleet and possibly look into new markets that will allow it to do so after having the aircraft, you will probably not be happy either.
Yet again, it begins with 6 aircraft and might end up with more. You never know.
Wouldn't be surprised if OU opt for the A330 neo at a later stage and go for long-haul.
Anonymous18:09 "I mean, for God's sake, even ITA Airways now will also use the A220."
DeleteGeee.I mean..realy!!! ITA Airways!!! haha
It is a state owned corpse of the former Al Italia. It was bankrupt god knows how many times.
OU should and could do better then that.
FIRST comes the commercial/market strategy and then comes the fleet strategy to support the market strategy. No idea what is the commercial strategy so this may well be "all about nothing" and more of the same - in which case, all it will add is significant cost without the comparable revenue llift ... In the end, they can do alot more with the existing fleet they have...
ReplyDeleteAirbus: “If you compare the A220 to older generation aircraft, Croatia Airlines will be able to operate with 25% lower fuel burn. That is what counts - being able to operate efficiently at lower cost"
ReplyDeleteAhem. It doesn't count when competition on the route is operating identical aircraft. It doesn't count when competition on the route is operating lower cost per seat e.g. single class A321NEO. It gets worse when competition has lower cost structure. A220 is no silver bullet for Croatia Airlines.
airBaltic used to fly twice daily between Riga and Warsaw with their Q400s offering excellent schedule for business oriented passengers from both markets as well as to feed Riga hub and flights were usually full. When they switched to A220 their schedule has been changed to 4 weekly (Mon/Wed/Fri/Sun) midday. Flights started to be empty. After a short while they quit the route and haven't returned. That's the A220 effect. Will it be similar at OU?
ReplyDeleteI don't think so. They will probably quit many other routes and increase FRA and MUC from 9 to 15 daily. Still making losses, of course. Who cares, Cartel deserves the best feed possible, whatever the cost be, after all it's not LH paying for it.
DeleteAnon 23:11, you have picked excelent proof what hapens when non-aviation people take over aviation business. They don't care about what they are selling, they don't care about long term results, they only see short term gains and yields. I guess it has something to do when managerial salaries started to be more and more dependant on market value, rather on real value. But this is modern capitalism...illusion is more valid than reality....
DeleteActually that might be a way for living for OU to connect ZAG as well as major Croatian regional airports like DBV, SPU (and ZAD/PUY in Summer) as well as LJU and some other exYu capitals to LHG hubs (FRA, MUC, ZRH, VIE and BRU) on behave of LH/OS/LX and SN becoming a kind of exYu version of EN. But at the same that would mean that Croats will be flying everywhere via LHG hubs. Maybe only a few other carriers (TK, A3, LO, AZ and AF as KL has to cut ZAG/BEG) will be able to compete with LHG in Croatia.
DeletenotLufthansa 01:06, and nobody is asking about the results; here all starts and ends at OU, punkt! but, they have nice hostess travelling across EU with top manager
DeleteIt is a bad decision, flights like Sarajevo, Skopje or Belgrade where the Dash wasn't filling, how the A220 going to be filled. It was a political decision. Only time will proof my opinion.
ReplyDeleteSo the ofset of 25% on fuel will make all the difference on paying for those planes?
ReplyDeleteI'm happy that they are getting them, but how about first not getting chased out of Zagreb by a LCC?
Those planes will be way more profitable, the real question is will OU manage to capitalize on that.
For now the only way they can do that is either sale or partnership with a profitable airline. Nothing else will help unfortunately.