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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

Zagreb to provide $37 mln cash injection for Croatia Airlines

Thu 19th September, 2019 10:37am
ZAGREB, Sept 19 (Reuters) - The Croatian government decided
on Thursday to provide a financial injection into loss-making
national flag carrier Croatia Airlines (CA)  HRAR.ZA , before
seeking a capital boost in the market next year.
    "We will provide 250 million kuna ($37.4 million) to
stabilise the CA's business. By Dec. 31 at the latest we will
propose a model of a capital boost for the carrier," Transport
Minister Oleg Butkovic told a cabinet session.
    He said  the process of providing a capital boost must begin
by June 1, 2020, at the latest. 
    "The process will be open to private investors," he added.
    The funds the government will inject now will be used for
paying off some outstanding debt and for servicing the fleet.
    In the first six months of 2019 CA posted a net loss of 89.4
million kuna compared to a net loss of 79.6 million kuna in the
same period of 2018. 
    Prime Minister Plenkovic said that preserving the viability
of the CA's business was vital for Croatia as a popular tourist
destination.
    The state owns 97 percent of the airline.
    
($1 = 6.6890 kuna)

 (Reporting by Igor Ilic; editing by David Evans)
 ((igor.ilic@thomsonreuters.com; +385 1 4899 970; mobile +385 98
334 053;))
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