Following the announcement by Croatia Airlines’ CEO, Ivan Mišetić, that only privatisation could save the airline from collapse, Croatian economic analysts believe that the airline could soon be under Lufthansa’s wing, which has supported the Croatian national carrier since the early 1990s. Lufthansa and Croatia Airlines signed a strategic partnership agreement in 2004 when Croatia Airlines become a regional Star Alliance member with the support and sponsorship of Lufthansa. It was in fact Lufthansa which provided Croatia Airlines with 3 Boeing B737-200s in 1993 at a heavily discounted price. All of these factors, including Croatia Airlines’ route network would, analysts believe, be enough motive for a Lufthansa purchase.
Croatia Airlines did not wish to comment on the speculations. In a statement released by the airline it said, “The privatisation of Croatia Airlines is a possible future business move. Whether it will take place and in which form will be up to the owners, the Government, to decide. We can not speculate about future owners or partnerships”.
Adding to the airline’s big losses is the monopoly it is forced to operate under. Croatia Airlines is only allowed to buy its fuel from Croatia’s National Petroleum Industry (INA) which the carrier believes is too expensive while airports across the country have enforced new, more expensive, handling fees under the Government’s order. Analysts predict that Croatia Airlines is far from bankruptcy because, as in the past, the Government will continue to cover all of the airline’s losses.
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