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CRAL-R-A - Croatia Airlines Dd News Story

HRK140 0.0  0.0%

Last Trade - 28/06/17

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £190.5m
Position in Universe th / 640

Croatia seeks industry partner for flag carrier

Thu 9th October, 2014 10:26am
ZAGREB, Oct 9 (Reuters) - The Croatian government said on 
Thursday it would again try to find an industry partner for 
struggling national flag carrier Croatia Airlines (CA) 
 HRAR.ZA . 
    Under the plan the partner would be expected to invest in 
the airline, which posted a net loss of 37.7 million kuna ($6.3 
million) in the first six months of this year, to renew its 
fleet.  
    Any partner from the European Union could become the 
majority owner, while a co-owner from a country outside the 
block cannot acquire more than 49 percent.  
    A year ago Croatia received no bids for the airline. Since 
then the government has launched a five-year restructuring 
process, worth almost 2 billion kuna, aimed at making CA 
financially viable. 
    "Croatia Airlines is in the process of restructuring and it 
is time to find a strategic partner again, primarily for 
recapitalisation and expanding its flight network," Transport 
Minister Sinisa Hajdas Doncic told a cabinet session. 
    "I think we're on the right path in this effort," he said, 
without elaborating. 
    Croatia is the newest EU member, having joined the bloc in 
July last year. CA was heavily subsidised for more than 20 years 
but that is no longer possible, under EU state aid rules. 
    Last year CA posted a net profit of 669,400 kuna. That 
compared with a loss of 65 million kuna in 2012, or 488 million 
kuna if one-off items are included.  
    The carrier, which operates only in Europe, has a fleet of 
12 planes - two Airbus A320s, four Airbus A319s and six smaller 
Dash planes. 
    Neighbouring Serbia, which started negotiating EU membership 
this year, signed a partnership deal last year with United Arab 
Emirates' Etihad Airways for its loss-making flag carrier JAT 
Airways.  
    (1 US dollar = 5.9915 Croatian kuna) 
 
 (Reporting by Igor Ilic; Editing by Zoran Radosavljevic and 
Pravin Char) 
 ((igor.ilic@thomsonreuters.com; +385 1 4899 970; mobile +385 98 
334 053;)) 
 
Keywords: CROATIA AIRLINES
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