Andrzej Jeziorski/ZAGREB
CROATIA AIRLINES has shelved plans to buy long-haul aircraft this year and is instead seeking a code-sharing partnership with a US airline.
According to senior vice-president Kresimir Magdic, the airline had intended this year to purchase either an Airbus A340 or an extended-range Boeing 767. While insisting that the carrier still hopes for future long-haul purchases, Magdic says that it is impossible to finance them.
The airline is already encountering problems with interest payments on domestic loans taken to cover the deposits paid on its five ex-Lufthansa Boeing 737-200s.
Croatia Airlines acquired these aircraft in 1992 and 1993 under a lease-purchase deal financed by German institutions and is now suffering under what it sees as the unfavourable terms of repayment. It also operates two ATR 42 turboprops, bought new in 1993.
Magdic says that Croatia Airlines sees much potential in the Australian, Canadian, South American and US markets - initially from ethnic passengers. "We would like to discuss the code-sharing idea with an American carrier which is not yet 'married'," says Magdic, stressing the importance of establishing a presence on the long-haul market, even if Croatia Airlines itself does not yet have long-haul capabilities.
The airline is also in preliminary discussions with Malev on possible co-operation on a new frequency linking Budapest to Zagreb and, possibly, Split. Croatia Airlines would provide the aircraft, with Malev covering half the cost. The Croatian carrier already has commercial co-operation agreements with Air France and Sabena, among others.
From January to November 1994, the carrier was operating on average load factors of 53%, which Magdic says would have led to positive financial results, but for the loan repayments. He estimates, nevertheless, that the company should have broken even by the end of the year.
Magdic says that some of the lost tourist traffic has been replaced by UN personnel and that increasing business and ethnic traffic bodes well for 1995. "We shall probably have to provide two more 737-sized aircraft and at least one more ATR to cover the requests we have for charter flights," he says.
Source: Flight International
