Privatisation for Croatia Airlines, But is the Interest There?

By 4 February 2019

As we reported recently, the enfeebled Croatian flag carrier, Croatia Airlines, will undergo privatisation, with the Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, having confirmed that the process is ongoing.

As Suzana Varosanec/Poslovni Dnevnik writes on the 3rd of February, 2019, fairly soon, the Croatian Government will decide on the appointment of a required commission to deal with the finding of a strategic partner for the burdened domestic airline.

In response to Poslovni Dnevnik's question on the matter, the response from the competent ministry was that Croatia Airlines has a tender which is currently in its final phase dedicated to finding a financial advisor for the development of the company's needed recapitalisation and the finding of an equally needed strategic partner, but as the initiator of the entire process Croatia Airlines is currently undergoing, it isn't in a position to comment on the details until the end of the procedure.

By the force of a decision made by the Croatian Government back on the 4th of January 2018, Croatia Airlines was returned to the list of companies of strategic and special interest to the Republic of Croatia. On the 26th of April 2018, the Croatian Government adopted the national program of reforms for the year 2018, which suggests ensuring further development and the strengthening of competitive advantages and positions on the air transport market through a quality strategic partnership should be the main goal for Croatia Airlines.

As an indicator of the results, the expansion of the domestic airline's transport network has since been established, as has as the increase in its market share and its recapitalisation.

Back in September 2018, in order to conduct a tender, a limited two-stage procurement procedure was initiated for the "financial advisor service to develop Croatia Airlines' recapitalisation model and finding a strategic partner".

Unofficially speaking, there does appear to be some serious interest for Croatia Airlines, but we're yet to see how that will manifest.

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Click here for the original article by Suzana Varosanec for Poslovni Dnevnik