Croatia Airlines has completed the sale and leaseback of its Airbus A320-family aircraft as it prepares to take delivery of its first A220 jets next year and eventually become an all A220-operator. As reported by EX-YU Aviation News last week, the carrier made the decision to sell four A319s and one A320 that it owned up until the sale. The remainder of its fleet is leased. The transaction was completed last week after the Croatian airline received several offers. World Star Aviation, an aircraft management company with particular expertise in mid-to-late life used commercial aircraft, was selected to take on all five units, including their engines. The value of the deal has not been disclosed.
Croatia Airlines will continue to operate the aircraft by leasing them from World Star Aviation until they are replaced by the A220 jets. "We are pleased that it is with World Star Aviation, our long-standing partner, that we have completed a sale and leaseback transaction for our entire Airbus fleet. The A319/A320 fleet continues to remain in service, which provides the company with flexibility in its fleet replacement project, during which all aircraft will be replaced, in due course, with new A220s, marking the biggest project in the history of Croatia Airlines", the carrier's CEO, Jasmin Bajić, said.
The Croatian carrier is currently implementing its entry into service program for its first of twelve A220 aircraft which are expected to start arriving next year. It has recently employed an additional eleven pilots in preparation for the new aircraft type. The carrier has invested 658.000 euros during the first half of the year in training its employees (pilots, cabin crew and maintenance staff). “Our focus is to align commercial and technical services department objectives when it comes to the introduction of the A220 aircraft into our fleet. We are now in the A220-EIS entry-into-service process and our aim is to expand all our scope and current capabilities into the new fleet”, the airline said.
The carrier is working on securing equipment and permits for the new aircraft type. Croatia Airlines’ Technical Director and Maintenance Manager, Tomislav Imprić, recently said, “The current issue is to schedule an A220 Part 147-type training plan for our aviation maintenance license personnel. Simultaneously, we are preparing necessary logistical measures to ensure availability of ground support equipment and tools, materials, and components needed to support the new aircraft type. Furthermore, we will be focusing on the delivery processes and developing our maintenance, engineering and planning expertise for the new fleet”.
Well that was quick
ReplyDeleteThis feels more and more like Adria when they got sold.
ReplyDeleteLet's wait and see but I'm not too optimistic
Why? They had to sell their fleet at some point because they're phasing out this aircraft type.
Delete^ who in their right mind thought they could afford brand new A220s? I think this arrangement they made is quite good. They get new planes but they pay just leasing costs.
DeleteWhat about other A220 operators like air Baltic. Do they own all the planes?
DeleteAir Baltic does own its planes
Delete^ and half of their fleet is grounded because of the problematic engines.
DeleteThis feels like OU is changing their business model completely. What is still lacking is ambition to expand and take chances with overseas flights. Without that, some people will continue calling them a LH feeder and nothing more.
DeleteThat is important- what some people might call them- 😂
DeleteI wonder how much they got for it. Or is it arranged by them not having to pay for the lease?
ReplyDeleteI guess we will find out when they publish their financial results. Remember how they had a nice profit after years of losses when they sold the Heathrow slots?
DeleteAlso when they sold the bus company and the engines.
DeleteI assume they would get money for the engines
DeleteSelling its Airbus A320-family aircraft may result in a short-term cash infusion, but it also means the airline loses assets.
DeleteJU has no assets yet it's profitable.
DeleteTDR owns 2 or 3 out of 5 A/C
DeleteSo the only national airline in ex-Yu that owns its own planes is Air Montenegro :D
ReplyDeleteDon't they also lease the embraers?
DeleteThey were on operational lease when Montenegro Airlines was around but the government bought Air Montenegro the two planes when YM went bankrupt.
DeleteThank you, didn't know that. Are those they bought the same ones YM leased?
DeleteYes, they are the same ones. Apparently Embraer and the Brazilian investment bank that actually owned the planes gave them a very good deal. Considering it was in the middle of Covid they probably thought they would never be able to find anyone interested in the planes
DeleteGood luck in getting those A220s on time considering the recent global recall on engines on the A220s.
ReplyDeleteSold slots, now planes, what's next?
ReplyDeleteMaintenance division if they are in real trouble
DeleteBrand new A220s.
DeleteCongratulations
ReplyDeletekad su u negdje krajem 2017 pitali CEO American Airlines, zašto MD80 još uvjek leti, kad je to stara kanta, on jim je odgovorio, da MD80 čim počne prvi let prvoga u mjesecu, on generira zaradu, jer su avijoni odavno isplačeni, a B737-800 mjesec započinje sa 850.000 USD duga lizing kompaniji.
ReplyDeletePametnome dosta....
Nazalost Croatia Airlines ne vode pametni strucnjaci nego partijski aparatcici i beskicmeni poslusnici, koji izvrsavaju naredbe onih "iznad", koji od ovog daljnjeg unistavanja nacionalnog prijevoznika imaju ogromne osobne benefite, a pritom i izvrsiteljima padne pokoja mrvica
DeleteI can read Croatian but very slowly and it is so hard to understand when people do not use ć č š and so on. Please bro, if you write in Croatian then write in Croatian. Hvala.
DeleteUnfortunately, Croatia Airlines is not led by competent and wise professionals but by Party aparatchiks and spineless obedient poltroons who only execute orders given from "above", from those who have huge personal benefits for further ruining national carrier, whereby executors got few breadcrumbs for themselves as well. And next time, will try using š đ č ć ž 😃
DeleteThank you poz. I always agree with you, well almost always. ;-)
DeleteIf everyone used the Slavic alphabets be it Glagolitic or Cyrillic then no one would have this problem of confusion. ;)
DeleteYes- OU should get back those MDs they used in the beginning of the 90s. They would be profitable right away- listening to that advice of AA. Soo easy -
DeleteTo be honest I had doubts they would find a buyer so good on them
ReplyDelete"We are pleased that it is with World Star Aviation, our long-standing partner"
ReplyDeleteWhen has OU cooperated with this company in the past?
They probably sold them engines in the past.
DeleteThis will free up capital for their transition to A220s
ReplyDeleteThis transition will be rather expensive. Look at how much they spent on training just in the first half of the year. Now they have to buy spare parts, tools etc like the technical director says.
DeleteTrue. I wonder if it is part of the deal for Airbus to cover the training costs or provide spare parts
DeleteYes, I think it was reported that Airbus has agreed to cover training costs pilots.
DeleteA220 (with PW engines) would be the ideal fit for Croatia Airlines because it comes with its world wide accepted excuses, and that's what the Buzin people love most: When you're unsuccessful, put the blame to somewhere else. "The company is losing money, - Well, A220's have the engine problem and were grounded for a while!", "The company's network is pathetic, - A220's are grounded frequently, so we can't rely on them and create a serious network!"
ReplyDelete+1
Delete+100
Delete+1000
DeleteOverall, Croatia Airlines' move towards becoming an all A220-operator seems to be well-planned and executed. It will be interesting to see how this transition unfolds and how it impacts the airline's operations and passenger experience.
ReplyDeleteAnd its bottom line...
DeleteOf course it's well planned and executed. Tenica is in Brussels already and AP is on his way. It costs money and "stoka sitnog zuba" will pay, as usual
DeleteWell it's a very similar plan that Bulgaria Air has. They also taking 7 new a220. The only difference is that they are going to keep their previous Airbus and embraer fleet.
DeleteBulgaria Air is similar position to Croatia. Both very linked to lufthansa and carried the same amount of passengers at their max and Both being pushed out by LCC in their own countries.
So this will be a good comparison to see which approach was the right one
OU or FB
Neither. JU and A3 have good approach
DeleteIt will be fascinating to see how these new planes will transform their operations and routes.
ReplyDeleteDon't hold your breath
DeleteYes, I will faint of fascination with more flights to Minken and Vrankvurt from every village in Croatia. Maybe even from Mostar.
Delete@pozdrav the best coffee is in Minken and Vrankvurt anyway 😜
DeleteIt's a risky move for Croatia Airlines to sell its existing Airbus A320-family aircraft before receiving its first A220 jets. What if there are delays in the A220 delivery? They could find themselves in a difficult situation.
ReplyDeleteIt's essential to remember that the A220 is not a magic wand for all the airline's problems. Croatia Airlines should also focus on improving its customer service, routes, and overall passenger experience.
ReplyDeleteCroatia Airlines' decision to go all-in on the A220 is a significant gamble. If the aircraft does not perform as expected or if market conditions change, they could find themselves in a difficult situation with no backup plan.
ReplyDeleteExactly my thought too. The aviation industry is unpredictable, and putting all their eggs in one basket could be a risky strategy.
DeleteI think getting rid of Q400s will be a mistake but let's see.
DeleteIt is advised by BCG. And BCG was corruptive deal because BCG was given instructions to "consult" and "advise" in a wa, and that OU remains LH feeder. The result was the most expensive on the market short and medium range aircraft, with issues, because of corporate bonds plus highest commissions. The thing is that Croatian market is NOT the market for single-type operations. OU needs smaller aircraft for domestic and regional services, A220 size aircraft for euromediterranean scheduled network, bigger medium range aircraft for coastal scheduled and charter operations and long-haul aircraft for its significant tourist and ethnic traffic from distant overseas markets. Instead building strategy to develop OU and ZAG as the hub for SE Europe, OU deliberately and willingly goes for shrinking and continuing being pathetic feeder and humiliated servant, in order for croatian politicians to get their armchairs in Brussels. And now you can go on spitting, writing I am tedious, boring, annoying, agressive, that I am a hater, that I don't know a first thing about aviation but this is in fact what is happening in Croatia and definitely something European Prosecutor's Office in Zagreb should look at
Delete100% correct. On the other hand we will have "our man" in Brussels and that great news for our small nation.Long term benefits will justify current bad ones
DeleteAll gamble is significant.
DeleteIs this connected to that previous contract for however many NEOs? Because if it is, if this is the old contract being reshaped, someone had messed up long ago and they possibly couldn't get a better deal with Airbus now - for example for fewer A220s (at least for a start) in which case they could've kept the Q400s.
DeleteOtherwise it really doesn't make sense for OU to get rid of all the Q400s and go all A220.
At any rate this should be interesting to follow, because I don't see them being able to mess around any more after such a move.
It'll either turn into an unexpected success with a bigger network all around, which would then allow for the continued leasing of the smaller aircraft for domestic and regional routes...or it'll end up in the final disaster.
I don't see any other, middle option after this. The government has already used up all of the excuses in front of the EU. Further subsidizing of the OU should not, and probably will not be allowed.
I'm worried that the Bravo Hrvatska guy hasn't written yet.
ReplyDeleteBravo OU, Bravo Hrvatska!
DeleteDelusional
Delete@09:29 - its not a guy, it is - IT. A semi AI bot working for sandwich and Pingo juice.
DeleteIs there a plan which aircraft they will get rid of first. The Q400s or the A320s?
ReplyDeleteI think the financial lease for the first couple of Dashes expires next year so I would assume they won't renew it.
DeleteThanks. Will be interesting to see what they do next year
DeleteSo we can expect a nice little profit then for 2023!
ReplyDeleteLikely, but unfortunately none of it is coming out of their core operations, which is transporting people from A to B.
DeleteIf A220s are late, they will need to pay for the lease of Airbus planes for much longer, so those extra lease costs could actually eat up all the money they made by selling those planes. I hope they have a good penalty clause in case A220s are late
ReplyDeleteIf this and if that.
DeleteInteresting the Technical director made absolutely no mention of the A220s engine issues.
ReplyDeleteZabran'lo
DeleteAs far as I understand, the issues just refer to engines already in service. The ones newly produced should be fine and do not require an inspection.
DeletePoprav'lo, a? Ma ja, neb' Jasmin pokvarito uzimo, sigurno....
DeleteAnon 12:10 How dare you say such things when it does not find mr. Pozdrav's agenda? I'm sure it's a lie made by Kradeze bots!
DeleteFit*
DeleteVid'ga Jasmin sta se razljutio.... Boli istina, boli, a?
DeleteI just really really hope this doesn't turn out like Adria's Sukhoi plane order.
ReplyDeleteNow THAT was a wild decision. Imagine if the company survived, how that would have played out in today's circumstances.
DeleteIf it didn't go bankrupt in 2019, it certainly would have after Covid or after the war started, especially with a sukhoi fleet.
DeleteSukhoi order was cancelled months before they went bankrupt so it wouldn't have happened either way.
Deletehttps://www.exyuaviation.com/2019/04/adria-airways-cancels-sukhoi-jet-deal.html
Iz šupljeg u prazno.
ReplyDelete+1.000.000
Delete....and back!
DeleteWhen will they release the planned new livery for the A220s?
ReplyDeleteWhen they get the first A220...
DeleteThey said it will be just a minimal change. Don't expect anything major.
DeleteOne should, since they miss Ivanković as the "Head of Corporate Design" had 28 years to improve on the current design ;-)
DeleteNe stize se. Pije se kahva. Pa tolike objave na FB. A triba i servis karte iskoristit....
DeleteI really do hope everything foes to plan with the A220s. I'm glad they managed to find a buyer for their Airbus fleet. I also share some concerns that transitioning to an all A220 fleet may limit the airline's ability to operate on certain routes or in certain market conditions that require smaller aircraft. This lack of flexibility could hinder their competitiveness and I assume their load factor will be impacted too. But I'm really hoping for the best. Next year will be an exciting one for OU.
ReplyDeleteWhy not disclose the value of this deal?
ReplyDeleteWhat do you think?
DeletePoslovna tajna.
DeleteCould getting the A220s be all about selling OU? Making it more attractive to potential investors with brand new planes? Government constantly keeps saying they will resume privatization when the company "stabilizes" and I'm starting to think they mean when they get the new planes.
ReplyDeleteEven Aegean gave up....
DeleteWhy would Aegean continue to give attention to OU I think they got more important things to do.
DeleteThe arrival of the A220s will coincide nicely with next year's parliamentary elections. I expect the PM taking lots of pics (and credit) for these.
ReplyDeleteIndeed
DeleteCongratulations on finding a buyer. This is very good news.
ReplyDeleteLOL
DeleteWhere is this World Star Aviation from?
ReplyDeleteEstablished in 2003 and dual-headquartered in San Francisco and London, with additional locations in Ireland, Israel, Singapore and Colombia
DeleteNever head of them
DeleteSounds super solid
DeleteWhen will the fist A220 arrive?
ReplyDeleteOriginally was supposed to arrive in February 2024, now moved to April 2024. Two aircraft should arrive in relatively short timeframe from each other.
DeleteA220 is obviously getting more and more popular in the region compared to Embraer. 10 years ago there was a demand for the E170, E190 but the A220 is a perfect plane and a superior product. Bulgaria Air received their second A220 lately so we could see more carriers using it. Perhaps Tarom can be next. Good luck, OU!
ReplyDeleteThe most corrupt and most undeveloped EU countries go for it. But your eyes are closed for that part. As well as for the part where Bulgaria Air only adds new type while keeping its current fleet. Concerning good luck, you don't need luck in business, you need competence, knowledge and balls, all what's missing big time in OU, unfortunatelly
DeleteCyprus, Italy, Switzerland, France. Just the worst 🤣
DeleteLatvia too
DeleteItaly, France and Switzerland and their airlines are not comparable to Croatia and they all don't have A220 as single type operating in their fleets. Cyprus is equally corrupt as BG and HR, probably even more. Latvia's market is much more suitable for single type operations, Croatian market requires different types. Interesting you comment and 😅 only on one part of the post, the one where you can twist the meaning of what I wrote. Pametnome dosta.
DeleteAh but of course, everyone is corrupt and underdeveloped and has ''different'' type of market when it doesn't fit your agenda. What else can I do but 🤣🤣
DeleteToo bad we can't draw here because you obviously need drawing to understand what I talk about. So in very simple words, that you maybe, just maybe, can understand : Switzerland, France and Italy CAN AFFORD A220 as one of many types in their fleet. Croatia CAN'T AFFORD single type leased the most expensive on the market fleet which has issues, to continue feeding LH, and that decision is result of corruptive deal, no matter how much you try to make fun of me speaking that painful truth.
DeleteAnonymous 16:54
DeleteIta & Fra are state shareholders of Airbus so obviously that they give priority for A220 eventhough they would be better off with cheaper a non EU option of the plane. Swiss as well would be better with cheaper option considering the bankruptcy of their banking system and deposit escape.
I beleive few hundred billion are withdrawn in last 2-3 years and moved to east.
Excuses, excuses.....
DeleteYou will need excuses, soon, in the Court
DeleteLOL
DeleteMaybe Jasmineee will show some profit for Y2023 like Kucko did when he sold engines and LHR slots. Next year we’ll see him on Seychelles.
ReplyDeleteCan someone please explain to me how this works. You sell your old planes for lets say 1m. You don't take the money from the leasing company you sold them to, bu instead, you agree that the 1m will cover leasing those same planes back for two years. Is that right, is that how it works?
ReplyDeleteThere are different modalities, but in general, you sell the plane e.g. for 1m and you get paid the purchase price. At the same time, you agree on the lease rate and timelines. From accounting perspective lot of things change, for instance lease is an expense,… In this situation they probably plan to have the aircraft in lease until they get new planes and they intend to pay total lease below the purchase price. Their calculation is also that this is a good time to sell, they have a buyer, they want flexibility to get rid of planes immediately once they get new one - that would be difficult once they get planes, because every buyer would know that they will sell it for peanuts and the planes will be much older (they are already pretty old for Airbus).
DeleteThank you for the explanation. I thought it better to sell the planes once the A220s arrive. But the price will be less then.
DeleteOne of OU insiders mentioned the sale lease back deal in range of $12 million. A few airplanes are without engines, only airframe was sold. Lease will cost them significantly more than cash they have received. Strange it was not offered on public tender.
ReplyDeleteOU and public tender in the same sentence? LOL!!!
DeleteTotally wrong. Calculated lease cost is lower than sale price.
Delete