Loading

Croatia Airlines: loss-making, high-cost and in need of capital. Any takers?

Analysis

In part one of our report on Croatia Airlines, we looked at its network and considered its possible appeal to any prospective bidder if the Croatian Government proceeds with reported plans to sell a stake in its national carrier. Interest will likely focus on the international market from Croatia, where it has some strong market positions, although it would bring only limited additional European access to a major Asian or Middle Eastern carrier and faces growing LCC competition.

In this second and final part of our report, we examine Croatia Airlines' finances and cost base. The group is loss-making since 2008, with a high-cost CASK structure and liable to need fresh equity capital (on top of that provided by the government in a debt to equity swap in 2012).

Having considered any strategic interest in Croatia Airlines, potential bidders will need to assess the feasibility and timing of any return to profitability and factor in the likelihood of having to inject more cash into the company. It will be a challenging sale.

Read More

This CAPA Analysis Report is 1,897 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More