
Croatian government prepares new PSO tender for domestic flight routes
The Croatian government is preparing a new tender for services of general economic interest (Public Service Obligation, PSO) to secure funding for domestic air routes after the current contracts expire on March 28, 2026. The so-called PSO regulations allow for the provision of European funds for unprofitable, mostly domestic routes that are nevertheless considered essential for the economic development of the respective region. The previous award in November 2021 awarded the multi-million euro contracts for twelve domestic routes to Croatia Airlines and Trade Air, which have historically been the only recipients of state subsidies for domestic flights. A new tender process is expected in late 2025 or early 2026. Routes currently maintained and compensated as PSO services include connections such as Dubrovnik-Zagreb, Split-Zagreb, and various routes connecting cities such as Zadar, Pula, Brač, Osijek, and Rijeka. However, there are efforts to revise the list of PSO routes. Rijeka Airport argues that its limited inclusion in the current system undermines regional connectivity and limits its potential for developing year-round air services. At the same time, questions are being raised as to whether flights from Zagreb to Split and Dubrovnik are actually unprofitable and thus comply with PSO guidelines. The discussion about adapting the route network reflects efforts to optimize efficiency and the benefits of subsidies. Irish airline Ryanair, which already has bases in Zagreb, Dubrovnik, and Zadar, has expressed interest in participating in the Croatian PSO tender and, if appropriate, launching domestic flights in the country. Ryanair announced an in-depth analysis of the tender conditions and stated that the decision will be primarily based on the








