State targets Croatia Airlines sale by year-end
The Croatian government has said it plans to finalise Croatia Airlines' privatisation by the end of the year as it embarks on another attempt to find an investor for the state-owned carrier. The Croatian Minister for Sea, Transport and Infrastructure, Oleg Butković, said recently, "We will now start more thorough work on the privatisation but it is difficult for me to say when exactly will we select a strategic partner. The deadline is by the end of the year. I don't know and can't speculate on how much the partner needs to invest into the airline. A financial advisor will determine the best possible sales model following a detailed review of Croatia Airlines' business".
The CEO of Croatia Airlines, Jasmin Bajić, whose term at the top job was extended by another six months last week for a fourth time, previously said the airline requires some 33 million euros in order to launch a new investment cycle and better compete against its rivals. "The situation is not good because we cannot develop. Currently, we can only stagnate and shrink. Therefore, we need a new investment cycle and capital which is why the ownership structure should change through recapitalisation. This will not be a sale in the traditional sense, rather a recapitalisation for the sake of development", Mr Bajić said. He added, "Competition will become more fierce and we will seek ways in which to survive. We don't want to back down. I guarantee the process will be successful".
The Croatian government has set up a multi-member, inter-agency committee whose main task is to seek out potential investors for Croatia Airlines. Minister Butković noted the process of selecting a strategic partner should not be limited to those within the European Union. "There are rules for those from outside the EU and we do not want to shut our doors to them. Considering the tourism industry and Croatia Airlines' importance, one of our main goals and interests is for the airline to remain a Croatian brand, because the tourism sector, airports and many others depend on it", Mr Butković said.
0 Response to "State targets Croatia Airlines sale by year-end"
Post a Comment