Croatia Airlines Part 2: Privatisation will require finding bidders with a strategic motive

In the first part of our analysis of Croatia Airlines, we examined its finances and highlighted an improving trend. The Croatian government's attempts to find a buyer for a 49% stake in the airline met with insufficient interest in 2013, but it is easier to sell a business where there are clear signs of profit returning than it is to sell a perennial loss-maker.

The potential privatisation has come back onto the agenda.

However, airlines rarely make a good investment on purely financial grounds and Croatia Airlines' prospects are likely to depend on finding a bidder with a strategic interest.

This second report looks into Croatia Airlines' network and market position and considers their possible appeal.