Business

Croatia’s government stabilises national airline with 33.7 million-euro grant

Croatia’s government is granting 250 million kuna (33.7 million euros) to stabilise Croatia Airlines ahead of a recapitalisation procedure.

“Croatia needs a national carrier which will stimulate trade, the economy, provide our citizens with connectivity and strengthen Croatian tourism,” said Prime Minister Andrej Plenković.

Early in February, the Minister of Maritime Affairs, Transport and Infrastructure Oleg Butković, said that the national airline was ready for privatisation. In fact, the company posted a net loss of 11.4 million euros in the first quarter of 2018, making clear that recapitalisation and privatisation were necessary for the company’s future.

“We believe that this decision will prevent possible negative consequences for the Croatian economy,” Mr Plenković added.

A final decision is expected to be taken by the end of the year in order to open the participation of private investors from June 2020.