Business News

Slovenian, Croatian Carriers Forge Closer Ties

Brnik, 19 September (STA) - The Slovenian and Croatian flag carriers, Adria Airways and Croatia Airlines, have agreed to cooperate in jet leasing as a means of improving efficiency and streamlining fleet utilisation, Adria said on Monday.

The carriers, both of them members of the airline alliance Star Alliance, operate Airbus-dominated fleets but have agreed to mutually lease Bombardier regional jets.

Adria is interested in Croatia Airlines' 76-seat Dash Q400 whereas Croatia Airlines hopes to use Adria's 86-seat CRJ 900 and the 50-seat CRJ 200.

But the press release also says that "closer cooperation is possible in shared flights on certain routes with the aim of achieving higher profitability".

"The agreement represents a way to better utilise capacity, whereas the planned long-term cooperation will have positive effects for both companies," Croatia Airlines chairman Srecko Simunovic was quoted as saying.

Adria chief executive Klemen Bostjancic added that fleet optimisation and regional cooperation were "a key part of the business strategy" as Adria seeks to complete financial restructuring.

Adria is awaiting a key decision by creditor banks, which have been asked to convert EUR 38.4m-worth of claims into ownership stakes.

The proposal, which also hinges on the government's willingness to allow the state to take part in a capital increase, will be put to the extraordinary annual general meeting on Wednesday.

Adria posted a loss of EUR 63m for 2020 on revenues of EUR 149m.

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