Croatia Airlines confident in post-Covid strategy success
Croatia Airlines will soon mark a year since adopting a post-Covid strategy, drafted jointly with the Boston Consulting Group (BCG), and is confident the measures, which are to be implemented for a further two years, will improve the company’s finances and make it more competitive. The strategy was developed during the first half of 2021 and adopted by the airline’s Supervisory Board on August 31 of last year. “The strategy opens up the path for further discussions with Croatia Airlines’ owner, the Republic of Croatia, and other stakeholders to ensure the long-term success of the Croatian national carrier and Star Alliance member”, the company said. It added, “The implementation of the defined strategic initiative will enable sustainable operations and a future. It also represents a new development cycle for Croatia Airlines. In addition to increasing efficiency and competitiveness, the company faces key operational and structural challenges that include fleet renewal and the optimisation of the year-round flight network”.
Although the airline is yet to make a crucial decision on the renewal of its fleet, it has implemented a number of changes over the past year to improve the business. The carrier has launched several new routes from the Croatian coast during the peak summer months and has implemented new Customer Relationship Management (CRM) technology to manage and analyse customer interactions and data. Furthermore, it is currently testing SAP Cloud for Customer solution to help manage day-to-day sales and service interactions, both with general and corporate clients. “The implementation of this system will enable a more efficient use of human resources, but also ensure the mobility of sales representatives who will be able to respond to the needs of clients in real-time since the system’s functionalities will be available through a mobile application”, Croatia Airlines said.
Croatia Airlines has also launched a new-look website with a number of new features aimed at driving up sales and ancillary services. It is currently in the third and final phase of developing new applications for its web pages. “The company is rigorously working on implementing new services. We have already made possible seat selection for a fee. We are working on a ‘Time to Think’ option, which will enable customers purchasing their tickets online to save their reservation for a limited time for an additional fee so they can think through whether to go ahead and make the booking”.
Despite a number of new initiatives, the airline still registered a notable loss of over 21 million euros during the first half of the year. “The implementation of the post-Covid strategy and the continuation of the privatisation process, once conditions are met, will reduce the risks related to the company’s ability to continue operations in the future. However, it should be noted that given the unpredictability of the pandemic, its scale and duration, as well as the impact virus-related restrictions have had on business operations, we do not rule out the possibility for the need of additional financial support from the owner”, Croatia Airlines concluded.
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