Croatia Airlines' CEO, Jasmin Bajić, has said that Zagreb Airport's plan to reopen its old terminal for low cost carriers is an effort to retain Ryanair's operations. According to the CEO, this move comes as incentives offered to Ryanair when it opened its base in the Croatian capital three years ago expire in the coming period. Speaking to the “Lider Media” portal, Mr Bajić said, “Zagreb Airport’s concessionaire is now trying, in order to keep Ryanair under favourable conditions, to launch an initiative to turn the old terminal into a low cost one. It is common for capital cities to have such solutions at secondary rather than main airports. For us it would be, for example, Rijeka. However, we want to give up our main airport to a low cost carrier under more favourable terms. On the other hand, Split also has Ryanair, but under the same conditions as other airlines”.
Mr. Bajić noted that if Croatia Airlines had received the same incentives that were given to Ryanair when it opened its base, the flag carrier would have been profitable. “There is no issue for there to be competition if it is operating under the same conditions. However, this is often not the case. In Zagreb, Ryanair is using big incentives for new routes. However, they are set to expire soon, so the conditions should be different. Of course, if it doesn't replace those routes with new ones. The fact is that under the same benefits as Ryanair, Croatia Airlines would, for example, in 2019, have registered a ten-million-euro profit rather than a ten-million-euro loss, which shows how big these benefits can be. Unfortunately, that's how it works, and Zagreb Airport is not an isolated case”, Mr Bajić said
Zagreb Airport's old terminal building, which has been closed for passenger use since March 28, 2017, could get a new lease on life with the government considering reopening the facility to cater for low cost carriers. Ryanair is Zagreb’s second largest airline based on available seat capacity. According to the Croatian government, an analysis has been launched into the building’s reopening. The state is willing to extend the concession of Zagreb Airport to its operator, the Zagreb Airport International Company (ZAIC), by three years and nine months if the consortium running the airport returns the old terminal into a functioning state. Zagreb Airport’s existing concession runs until 2042. The process is still in its early stages but informal talks between the competent authorities and the European Commission have taken place. The Croatian Ministry for Sea, Transport and Infrastructure is aiming to reopen the terminal for commercial use in 2026. The ZAIC consortium has made no public comment on the matter so far.
Look, I really don't like him but if: "The fact is that under the same benefits as Ryanair, Croatia Airlines would, for example, in 2019, have registered a ten-million-euro profit rather than a ten-million-euro loss, which shows how big these benefits can be. Unfortunately, that's how it works, and Zagreb Airport is not an isolated case" is anywhere close to the truth, it's insane for Croatia as a state to allow it.
ReplyDeleteI really doubt it's anywhere close to the truth. The truth is our airline is rotten and this is just an excuse.
DeleteTry and cut Ryanair's incentives and they'll be off straight away!
DeleteRyan is in a position to make an offer that's hard to refuse. OU is not.
DeleteThe Croatia Airlines CEO is an absolute disgrace. Croatia airlines was given the exact same opportunity as Ryanair to make use of these incentives but it didn't. The whole point of the incentives is to get new routes - they are incentives for launching new destinations. What Bajic wants is discounts across the board for all of his operations at ZAG. What's the point of that??
DeleteRyanair has eaten OU, now it is just matter of time before money runs out! LH will cry for great “milking cow” OU was!
DeleteBut can someone explain to me the point of reopening the old terminal rather than just for Ryanair? Zagreb is barely served by any LCC. The only other year-round LCC serving Zagreb is Eurowings and since a few months ago Pegasus with 2 weekly flights.
DeleteThe existing terminal can't handle the traffic. It's just not big enough.
DeleteAnon @10:15 Exactly!! That is precisely what he wants given what he's said here.
DeleteHe's so full of it.
I clearly remember that those same incentives had been offered to all airlines for opening new, unserved routes.
Instead of whining about FR, and then basically running away from ZAG, OU could've opened new routes and used the exact same incentives.
Those incentives btw aren't as big as he's trying to portray them. They involved operating with no fees whatsoever only during the first year of operations. With each following year the fees have been going up by 25%. Currently Ryanair is paying 75% of the fees and next year there will be no discount for it.
That's why they're now opening the old terminal for LCCs where the fees will naturally be lower than at the main terminal. Permanently.
This might attract Wizz Air after they solve their engine issues. Perhaps EasyJet too.
Well of course the reopening of the old terminal is for Ryanair. And it will probably result in Ryanair basing more planes in ZAG.
ReplyDeleteBut is it fair to invest money to reopen the old terminal for a foreign LCC?
DeleteWell the foreign company is investing their own money, not money from taxpayers.
Delete0909, nothing to invest. I actually prefer the old terminalit was less practical compared to the new one, but it had soul.
DeleteWhy would it not be fair, and what does "foreign" have to do with it? Croatia Airlines is domestic and it is an absolute disgrace. It barely has any destinations from Zagreb and ticket prices are ridiculously expensive.
DeleteAgree with anon 10:12. The old one had a vintage YU vibes.
DeleteIt is not true that there is nothing to invest. The terminal has degraded over time and also you have to install new equipment again, hire additional staff, likely introduce bus line between two terminals, buy computers, check-in machines etc. It is not as easy as just opening the doors.
Delete1031, mak na konac. Visiting this site just for the sake of arguing. Investing 1 million euros to rejufinate the old terminal is insignificant money. Now you go and bikker with someone else, kiddo!
DeleteCalm down. I'm not bickering, nor was I being rude to you. I just expressed my opinion. No need to be rude and angry.
DeleteNeither rude nor angry. A bit tired of those who express 'their opinion' without arguments, that's all.
DeleteI expressed my argument and listed things that need to be done, in response to your comment that no investment was needed. You didn't like it and accused me of bickering as I guess you only expected applause for your comment.
DeleteIf no investment was required in the terminal and its daily operation, the government would not offer a 3 year extension of the concession. Common sense.
DeleteExactly the 3 year complimentary extension is to cover the cost of putting the building back into order. Like someone said it is not all about physically having the building ready. You got to buy computers, software, install security again, xrays, hire additional staff that will work at the terminal, reopen shops. It's anything but cheap. If it was cheap they never would have closed it and would have used as an LCC terminal from the very start.
Delete" On the other hand, Split also has Ryanair, but under the same conditions as other airlines”
ReplyDeleteI guess that is why Croatia Airlines is expanding in SPU.
What he conveniently forgot to mention is that Split has given Croatia Airlines MILLIONS OF EUROS. How is he not ashamed to be such a liar??
DeleteThe disgraceful CEO of Croatia Airlines Jasmin Bajić conveniently didn't mention that Split Airport gives Croatia Airlines millions of euros for "advertising".
DeleteJasmin is not disgraceful. He is a well educated man with a very long career in Aviation. So stop spreading your lies Anonymous 13:38! You are the disgrace!
DeleteYes from Aperion university.
DeleteRyanair are big bullies and hold Airports to ransom!
ReplyDelete+1
DeleteWell they are right. Why should Ryanair get better terms than Croatia Airlines which has been flying from there for 35 years and even flew during the pandemic when many airlines grounded all their planes.
ReplyDeleteBecause it will get a different service?
Delete0916, flying vs flying??
DeleteRyanair does not get the service of flying, it provides it. The service that Ryanair gets is the airport provision to airlines.
DeleteWell I guess OU has launched around 8 new routes since 2016 and they didn't receive the same treatment as FR in terms of discounts.
DeleteTough. You can't apply discounts retroactively. Market conditions change. The world today is not the same it was between 2016 and 2019.
DeleteEvery time some LCC comes to Zagreb they launch exactly the same campaign until they eventually drive them out.
ReplyDeleteCroatia Airlines isn't actually making an issue that Ryanair is flying from Zagreb. What they have an issue with is that it is getting much better terms at the airport than they are and Croatia Airlines is by far the biggest airline in Zagreb.
DeleteThe terms are THE SAME. Bajic was just too incompetent to make use of them.
Delete@09:45:
DeleteOU has 180k seat capacity from ZAG in July, when FR has 165k. That's less than 10% difference. And when you take load factor into account, I wouldn't be surprised if FR carried equal number (or even) more pax on routes to/from ZAG than OU.
What do you mean you wouldnt be surprised? It's a fact that Ryanair had more passengers.
DeleteCroatia Airlines can always transfer its ZAG operations to LJU and sell it as Ljubljana - Zagreb West.
ReplyDeleteI support this! At least we would get decent connections.
DeleteCry me a river Croatia Airlines
ReplyDelete+100
DeleteWasn't OU free to apply for these incentives Ryanair got?
ReplyDeleteYes, and it chose not to. Completely incompetent CEO.
DeleteYes, but they didn't bother. They wanted the same incentives to be applied to the routes they are already flying. They had a chance to open the same routes and prevent Ryanair from getting incentives, or any other route and benefit from the same program, but I guess it was too early. Insisting that Ryanair is privileged while they receive so much money from the state, local "advertising" and what not is just shameless. On top of everything, OU is owned by the government, the same government that is trying to reopen the old terminal. Is this just whining for the sake of whining? Or one (or both) sides are clueless of what they should be doing? A comedy. A tragedy.
DeleteA long time ago Krsko was supposed to be a LLC hub for both Zagreb and Ljubljana, it would be perfect nowdays to be honest!
ReplyDeleteDoes anyone lnow of they still have pax terminal?
Always that one guy suggesting for this airport. We already have 3 empty airports.
DeleteAnon 9.18. Krsko is pure Nato base and will never served public service.
DeleteNot true, when new Tower was constructed it embodied civilian terminal too. Plans for that have never changed.
DeleteYup, Krsko is an air base. It looks great tho!
DeleteWhy do they complain?
ReplyDeleteIt is easier to complain, than to actually do something.
DeleteBingo!
DeleteTime to quit whining. I don't know a European airline that has been so well protected at their main base for so long.
ReplyDeleteYet so ungrateful and continues to bark.
DeleteActing as a Lufthansa feeder and avoiding numerous markets while more than half of your network is seasonal will come back to bite. Can't more routes not work year round? Maybe they couldn't but if the airline stimulates the market, tour operators, advertises in those countries it may actually work.
ReplyDeleteYou snooze you loose
ReplyDeleteGetting a new fleet and introducing a new strategy of focusing more on Split and Dubrovnik is snoozing to you??
DeleteThe new fleet was needed because the old aircraft were falling apart. And Croatia Airlines made completely the wrong choice with the A220.
DeleteFocussing on Dubrovnik?? Where?
Split is also a comedy. Oh has a few aircraft there four months a year.
Needed or not, it's here and coming. No comedy there, the aircraft are where market is. Get it?!
DeleteThe aircraft are where the market is? Croatia Airlines has barely any flights out of Split when you take away the PSO flights.
DeleteI'm interested to see how the government will respond. It has always come to Croatia Airlines' rescue but now it is pushing for the terminal reopening?
ReplyDeleteI don't know what more they can do. They gave OU a lot of aid in the past and I don't think the EU would let it happen again. Also Ryanair would be quick to launch court proceedings and would complain to the EU.
DeleteThey can replace the management starting with the completely incompetent Jasmin Bajić.
Delete^ This!
DeleteLCCs are a fact of life now in every part of the world, and their contribution cannot be underestimated. Time for OU to get used to that.
ReplyDelete+1 Ryanair has done wonders for ZAG.
DeleteWonders or disasters?
DeleteDo the stress test and halt all of incentives. What happens next?
DeleteZagreb fees are way too high to begin with, so without discounts the airlines leave. It's simple.
DeleteGood luck to OU
ReplyDeleteGood luck to OU, FR and ZAG. I'm certain all three can coexist and function besides each other.
DeleteCroatia Airlines cannot. It couldn't make a profit when it was just OU + ZAG, how could it make a profit now that FR is there too?
DeleteZAIC is applying pressure on OU management, logical move (and expected).
ReplyDeleteIt's completely ludicrous what Croatia Airlines was implying. They can't calculate incentives retroactively for routes launched years ago.
ReplyDeleteI don't understand that OU didn't see this coming. I mean in general, it must have known that some LCC would sooner or later start flights or base a plane.
ReplyDeleteCroatia Airlines was hoping to keep ripping off passengers with high prices forever.
DeleteSo does Ryanair where there is no competition.
DeleteTell me please, where does Ryanair rip off passengers? Examples please?
DeleteAs a Croat, I’m glad that we have a national company, but the complaints from Baja are just pathetic. OU survives on subsidies from taxpayers but offers nothing in return
ReplyDeleteBut it was OU's decission not to use those very same incentives and now he tells us they would be profitable if they did. It was your mistake.
ReplyDeleteNo, he says Croatia Airlines would be profitable IN THE PAST if the incentives which were launched for NEW ROUTES in 2021 were applied to Croatia Airlines' OLD ROUTES in 2019. The man is an absolute disgrace.
DeleteHej Jasmin, check what you country's competition agency (aztn.hr) has said about your bs back in 2021, before you embarrass yourself further:
ReplyDeleteCCA investigates practices of Zagreb Airport
In the preliminary market investigation relating to the alleged abusive practices of the undertaking Međunarodna zračna luka Zagreb d.d. (Zagreb Airport) with respect to the conclusion of the agreement on the provision of services with the undertaking Ryanair the Croatian Competition Agency (CCA) sought the data and the opinions of the undertaking Croatia Airlines d.d., Zagreb Airport and the Croatian Civil Aviation Agency.
The received data explained that Ryanair applied for the incentive scheme that is a constituent part of the pricelist of Zagreb Airport and that lays down the criteria for discounts applied to certain charges and aims at promoting air transport during the covid pandemic.
The incentive scheme offers eight publicly available models that are included in Zagreb Airport pricelist. One of the models is the Air Traffic Promotion Model that entered into force in December 2020 after the consultation with the representative body of Zagreb Airport users and the approval of the Croatian Civil Aviation Agency.
The Air Traffic Promotion Model aiming at alleviating the adverse consequences on air traffic caused by covid pandemic was published on the website of Zagreb Airport and was available to all interested air carriers from December 2020 to end of June 2021. It provides incentives for air carriers that opened new routes i.e., the routes that had not existed on Zagreb Airport before the implementation of the incentive scheme.
Ryanair was the only carrier that applied for the incentive scheme concerned.
The CCA found that the incentives have not been given immediately after the signing of the incentive agreement. During the implementation of the incentive scheme the air carrier pays the full charges defined by the price list of Zagreb Airport. Only after Zagreb Airport during the monitoring procedure finds that the air carrier meets the requirements under the incentive agreement and the model concerned, it calculates the discounts and issues approval for payment.
The investigation into the data concerned showed that there have been no indices of abuse of dominance by Zagreb Airport within the meaning of Article 13 paragraph 3 of the Competition Act OG 79/09, 80/13 and 41/21 in the payment of charges for the access to the airport facilities under the Air Traffic Promotion Model on the account of the fact that both the pricelist and Air Traffic Promotion Model have been subject to a strictly regulated procedure involving the mandatory consent of many parties, in particular, the representative body of Zagreb Airport users, and that is under scrutiny of the Croatian Civil Aviation Agency.
The determined discount system in this model, as in other models under the incentive scheme, has a standardised threshold that applies equally to all interested airlines and such a discount system does no lead to unequal treatment of airlines in practice, given the discount scheme is not flexible and it does not provide for individual discounts.
+1
DeleteThank you!
Thank you so much for this. Jasmin Bajić is a disgrace.
DeleteThanks for posting this. Bajic isn't only incompetent but so sleazy as well. The worst possible combination.
Deletein the split, Croatia airlines has better conditions than all other companies, they have huge incentives and receive additional subsidies....
ReplyDeleteThey also get paid by the government to fly to Zagreb. On top of the millions of euros that they get from Split Airport.
DeleteVery nice.
ReplyDeleteThe important thing is Zagreb is growing. Who cares what OU thinks.
ReplyDeleteWell ZAG probably doesn't anymore. With Ryanair around they know it would fill any void left by OU if it were to disappear.
DeleteIt wouldn't. Ryanair would never fly to Sarajevo, Zurich, Skopje.
DeleteI don't believe the incentives FR is getting are fair. They get incentive for routes like London Stansted while OU is flying to the Heathrow. Or Memmingen while OU is flying to Munich.
ReplyDeleteIt takes 1.5 hours to drive from Memmingen to Munich.
DeleteMemmingen ist not munich
DeleteThey don't get incentives for flying to the same city so STN is on them to make a profit.
DeleteSo what? OU has actually been doing rather well with their Heathrow flights, given the astronomical prices.
DeleteAlso, they easily could've launched Manchester before Ryanair did it, they knew there was a demand for it.
Not to mention: Berlin, Stockholm, Krakow, Prague, Milan, Podgorica, Sofia, Lisbon, Madrid, Athens directly, Tel Aviv properly, various leisure routes...etc.
OU has been bragging for months how they are going to introduce a ton of new routes with the A220 and my guess is they will get the incentives for it. So why are they complaining now about reactivating the old terminal?
ReplyDeleteBecause by the time they add new routes which will probably be 2-3 weekly for 4 months in summer, Ryanair will have another 2 planes and 12 new routes
DeleteExactly
DeleteWhy OU didn't make the most of it of having little LCC competition at its main base up until now is a good question.
ReplyDeleteCroatia Airlines really needs to focus on actually competing against FR.
ReplyDeleteToo late.
DeleteLCCs are a fact of life now in every part of the world, and their contribution cannot be underestimated. Time for OU to get used to that.
DeleteSurprise surprise
ReplyDeleteDoes FR really pose that much of a threat to them?
ReplyDeleteCroatia Airlines couldn't be profitable back in 2019 when all of aviation was booming and there was no Ryanair or easyJet or Wizz in Zagreb.
DeleteQuestion, does FR use the jet bridges at Zagreb Airport. Or do passengers just disembark through stairs? Thanks.
ReplyDeleteThey use also jet bridges. Just had these days a return flight with them in Zagreb.
DeleteThe passengers disembark the aircraft through the stairs and then walk up into the jet bridge.
Delete^ Lol!!!
DeleteIt's both. And due to the new terminal having too few gates, they often park in front of the old terminal already...then the passengers get bused to the new one - some 2.5 - 3km away. FR isn't the only one parking in front of the old terminal either.
Does anyone have an idea as to what the probability of the old terminal reopening is?
ReplyDeleteIt could happen. The building is still in decent condition, partially used for general aviation and the cargo terminal is still there. It wouldn't take a huge investment to put it in full operation again. Besides ZAIC will need to make the last major investment by upgrading the new terminal anyway. Most likely in 2026. They could split that last investment between the two terminals, since the main issue is too few gates anyhow...so it'd be kinda like two birds with one stone.
DeleteIt wouldn't cost them much more either and they would in return increase the entire airport's capacity to 10 million annual passengers, instead of the required 8 million.
With the additional 4 - 5 years of concession period, after this last investment they'd have over 20 years of operating a nicely developing airport, gathering the fruits of prior investments.