Aegean maintains Croatia Airlines interest
Greece’s Aegean Airlines is continuing to look into opportunities of aligning itself closer with Croatia Airlines, which could potentially lead to a strategic partnership between the two Star Alliance members. Just prior to the outbreak of Covid-19, Aegean confirmed it had submitted a non-binding bid for the acquisition of Croatia’s national carrier. The next phase was to include direct talks between the Greek airline and the Croatian government. However, the process was halted in March as the global health emergency hit the aviation and tourism sectors. This September, the Croatian Prime Minister noted that negotiations between the two carriers over a strategic partnership agreement would be renewed in the coming months.
Aegean Airlines participated in the previous attempt to privatise Croatia Airlines as well, back in 2015. It entered into the second round of talks with then privatisation advisor International Finance Corporation, however, a change in government in Croatia put an end to the company’s privatisation drive. As an airline registered in the European Union, Aegean can purchase a majority stake in its Croatian counterpart. The two carriers share a similar fleet structure, with both operating Airbus A320-family jets and Dash 8 turboprops. Furthermore, both navigate in similar and competitive seasonal environments.
The similarities between the two mostly end there. Aegean has been continuously profitable since 2013 up until the Covid crisis, registering a record 79.5-million-euro profit in 2019. It employed some 2.900 people that year, carried fifteen million passengers and registered an average cabin load factor of 84.8% across a fleet of 64 aircraft. On the other hand, Croatia Airlines registered a loss of over ten million euros in 2019, had 1.000 employees on the books, carried 2.1 million passengers on twelve aircraft with an average annual cabin load factor of 73.6%. Aegean has been exemplified as an airline that makes effective use of tourism growth in its home country, which the Croatian carrier is perceived to be missing. Croatia’s Minister for Sea, Transport and Infrastructure, Oleg Butković, noted, “I am certain we will find the best possible solution to stabilise Croatia Airlines and enable it to grow. Croatia, as a country dependent on tourism, needs a national carrier. We don’t want a strategic partnership where state interests and services of importance to Croatia would not be safeguarded”.
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