Croatia Airlines and Zagreb Airport discuss subsidies program

NEWS 19.04.2021 18:28
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Source: Emica Elvedji/PIXSELL

Executives of the Croatia Airlines and Zagreb Airport on Monday discussed the use of the airport's Growth Incentive Model aimed at increasing air traffic.

During the talks held at the transport ministry, both sides “showed interest to find a constructive solution to mutual benefit” and will “intensify talks on that topic in the coming period,” reads a press release issued by the ministry.

Transport Minister Oleg Butkovic was quoted as expressing satisfaction with today’s meeting

“The ministry and the entire government finds it important to enable Croatia Airlines to survive in doing business while at the same time we wish to support developing business and opening new routes at Zagreb Airport,” Butkovic said.

“The pandemic has had an exceptionally negative impact on air transport in the entire world and we are all aware that it is necessary to invest significant effort to survive on the market and preserve every job,” Minister Oleg Butkovic said in a press release.

It was agreed to intensify talks with the ministry in an effort to come to a favourable solution in line with legislative regulations and practices in air transport.

Croatia Airlines is calling on Zagreb Airport to “adjust conditions” for the airline’s use of the airport in line with those offered to Ryanair, which has announced opening a base in Zagreb.

CA recently said in a press release that under the terms offered to Ryanair, in 2019 this national flag carrier would have paid Zagreb Airport 135.4 million kuna less than the amount actually paid, which means that instead of a net loss of some 80 million kuna, the company would have posted a net profit of more than 55 million kuna.

Croatia Airlines believes this is a breach of fair market competition and potentially harmful activity, “because of the obvious interest by the parties involved.”

Croatia Airlines wants Zagreb Airport to adjust its terms of use of the airport to those offered to the Irish airline Ryanair, taking the number of routes and passengers into consideration.

(€1 = 7.57 kuna)

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