Categorized | Croatian Airlines

Croatia Airlines preparing for privatisation

Croatia Airlines is carrying out final preparations for the upcoming tender to sell 49% of the company. The Croatian Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić, says that “everything is on course” for tender procedures to begin in a few weeks. The minister outlined that a final evaluation of Croatia Airlines must be completed before the carrier is put up for sale so the airline’s approximate value is known. However, the minister also added, “The price offered by a potential partner will not be paramount, rather, the focus will be on the quality of the strategic partner which could generate more traffic for Croatian airports”.croatia-arilines-1

Mr. Hajdaš Dončić did not mention any potential bidders but said, “Due to the current situation in the European aviation industry we shouldn’t expect any interest from European investors. We are more likely to find them outside of Europe”. Garuda Indonesia, China Southern Airlines and Hainan Airlines have all been named as potential partners. The Indonesian national carrier is the only one to have publicly voiced their interest to purchase a stake in Croatia Airlines. Recently, Mr. Hajdaš Dončić said, “Garuda is likely to answer the tender call because they are interested in our strong connections to the rest of the European Union”. The statement was echoed by Garuda CEO Emirsyah Satar who said that, “Croatia and Croatia Airlines would be a logical choice for us”.

The Croatian government is also preparing to sell off Osijek Airport. The airport has experienced financial hardship over the past few years and has struggled to attract customers. Recently, the Croatian President, Ivo Josipović, met with representatives from Indonesia’s Global Putra International Group which has expressed interest to purchase Osijek Airport and turn it into a cargo hub. Global Putra, established in 1981, is an integrated transport and logistics provider in Indonesia.

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