Croatia Airlines in debt

Croatia Airlines Airbus A319

It has been revealed that Croatia Airlines’ true 2009 closing balance is a loss of 22.6 million Euros. The result will officially be made public in April. The airline also owes millions of Euros to airports across Croatia. The national carrier failed to pay handling fees to airports across the country in 2008 and 2009 and its total debt to the airports is estimated at 11 million Euros. The management of Zagreb Airport claims that the airline owes its hub 2.7 million Euros.

Croatia Airlines nearly had one of its Airbus A319s revoked in December when it failed to make a payment for the aircraft. The Government of Croatia signed documentation and guarantees stating that the aircraft’s leasing fees would be payed in full. The Government payed the bill for the aircraft in December. The next payment is to be made on June 1.

On a more optimistic note, the airline’s management has struck a deal with 3 out of 5 unions for pay cuts to be implemented. A strike by the airline’s unions, announced to ground the airline on February 26, could be avoided if the union of pilots and the union of cabin crew agree to the new terms.