Croatia Airlines to cut costs and implement new strategy
Croatia Airlines plans to further cut its costs and implement its much talked about post-Covid strategy next year, the company’s CEO, Jasmin Bajić, has said. The CEO noted, “Traffic will continue to be contingent on external factors, beyond the company’s control, such as restrictions, bans and other measures, which directly impact on people’s ability to travel both domestically and internationally. Accordingly, we will focus on flexible planning of our network. Our goal is to achieve optimal load factors with average fares in existing conditions of reduced capacity. However, there is some optimism based on the latest forecast by the International Monetary Fund which predicts the recovery of the Croatian economy in 2022 with 5.6% GDP growth. Therefore, in 2022 our focus will be on greater rationalisation of costs and the implementation of the company’s defined post-Covid strategy”.
Mr Bajić noted the carrier’s post-Covid strategy, developed in cooperation with the Boston Consulting Group (BCG) will be the foundation of the airline's development for years to come. “We continue to take all the necessary measures to safeguard liquidity and optimise the business, as well as undertake rigorous cost cutting measures. During the year, we worked with the leading international strategic consulting company BCG to develop a post-Covid strategy in order to define strategic initiatives, the implementation of which, with prior consent of the majority owner - the government of the Republic of Croatia - will take thee years to enable a sustainable business”.
The post-Covid strategy is soon expected to be adopted by the Croatian government and foresees the renewal of the fleet, improvement in efficiency and competitiveness, as well as the optimisation of Croatia Airlines’ year-round route network. The Croatian carrier will also further digitalise its business by switching to a new SAP system (Systems Applications and Products), a widely used enterprise resource planning software, as well as study and analyse data in more detail, improve management skills at all managerial levels, increase productivity, focus on quality, entrepreneurship, cost awareness and innovation. “We will inform the public of all upcoming steps in due course”, the company noted.
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