Monday, 19 April 2021

Executives of Croatia Airlines and Zagreb Airport Discuss Growth Incentive Model

ZAGREB, 19 April, 2021- Executives of the Croatia Airlines (CA) and Zagreb International Airport (MZLZ) on Monday discussed the use of the airport's Growth Incentive Model aimed at increasing air traffic.

During the talks held at the transport ministry, both sides showed interest to find a constructive solution to mutual benefit and will intensify talks on that topic in the coming period, reads a press release issued by the ministry.

Transport Minister Oleg Butković was quoted as expressing satisfaction with today's meeting

The ministry and the entire government finds it important to enable Croatia Airlines to survive in doing business while at the same time we wish to support developing business and opening new routes at Franjo Tuđman Airport, Butković said. 

"The pandemic has had an exceptionally negative impact on air transport in the entire world and we are all aware that it is necessary to invest significant effort to survive on the market and preserve every job," Minister Oleg Butković said as carried by the press release.

It was agreed to intensify talks with the ministry in an effort to come to a favourable solution in line with legislative regulations and practices in air transport.

Croatia Airlines is calling on MZLZ to adjust conditions for CA's use of the airport in line with those offered to Ryanair, which has announced opening a base in Zagreb.

CA recently said in a press release that under the terms offered to Ryanair, in 2019 this national flag carrier would have paid MZLZ HRK 135.4 million less than the amount actually paid, which means that instead of a net loss of some HRK 80 million, the company would have posted a net profit of more than HRK 55 million.

Croatia Airlines believes this is a breach of fair market competition and potentially harmful activity, "because of the obvious interest by the parties involved."

Croatia Airlines wants MZLZ to adjust its terms of use of the airport to those offered to the Irish airline Ryanair, taking the number of routes and passengers into consideration.

 

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