Counting the cost

Croatia Airlines ponders over ticket price increase

The dust over Europe is yet to settle after a week of unprecedented events in the world aviation industry. As one by one countries in Europe started closing their airspace, due to a volcanic ash cloud from Iceland, airlines could not do more than sit and wait. Now, as some services are normalised, airlines are beginning to count the cost. EX-YU airlines have a lot to be worried about.

Croatia Airlines said that its losses have amounted to at least 2.5 million Euros. The airline could not handle some 24.000 passengers, which were supposed to fly with Croatia Airlines since April 16 until today, the airline’s spokesperson Davor Janušić said. The CEO of Croatia Airlines, Ivan Mišetić, confirmed that the airline is considering increasing ticket prices to cope with the massive losses. “I’m afraid to say that increasing tickets will come as a relief to the airline”, he added.

The Slovenian flag carrier Adria Airways said it had lost up to 1.4 million Euros due to cancelled flights and would ask the Government for a refund, the Slovenian news agency “STA” reports. Transport Minister Patrick Vlačič said he was inclined to the idea of providing state aid to the airline.

Serbia’s Jat Airways said that the volcanic ash has created a loss of 900.000 Euros. However, the airline said it was still too early to predict the final loss as some services are still being cancelled.

Montenegro Airlines is asking the Montenegrin Government for a refund of up to 1 million Euros. The airline’s CEO told the national broadcaster RTCG that the airline had lost up to 4.500 passengers by Sunday afternoon. Montenegro Airlines has said it will not be offering refunds to passengers as the natural disaster was an act of God. The newspaper “Dan” states that this could have a negative affect on the airline’s image as other regional carriers such as Jat Airways and Croatia Airlines are fully refunding tickets. Airports of Montenegro, which runs Podgorica and Tivat airports, said that it lost some 80.000 Euros in 2 days due to the ash cloud.

B&H Airlines is yet to announce its losses. The airline was forced to virtually cancel all of its services in the past few days with the exclusion of Istanbul.