The Star Alliance member Croatia Airlines applied to the Croatian government for state aid. The company stated that it is needed to ensure liquidity and to mitigate the damage caused by the COVID-19 crisis.

Ex-Yu Aviation writes, citing Croatia Airlines, that the carrier is in intensive negotiations with the state about a possible financial injection. There is also talk of government guarantees for long-term loans. The Croatian airline suffered a net loss of 2020 million euros in the first half of 23,1. However, they were also in the red in the same period last year.

Croatia Airlines has designed three different scenarios of how the ongoing pandemic could affect business. “The first forecasts prepared for our contingency plan predict a loss of 30 million euros as of December 31, 2020. With this result we would have marginal liquidity. In order to maintain sustainable operations, we therefore need additional funds in the form of loans and government guarantees. For the second cash flow forecast, which is based on a revenue level of 52% compared to the previous year, the suspension of some seasonal routes and a lower average cabin occupancy factor, we expect a loss of forty million euros. Should the crisis drag on and the sales level reach 37% of the previous year, while the reopening of the borders is delayed, which leads to lower demand at the beginning of 2021 and our schedule is reduced to significantly fewer routes, we could exclude a shortfall of 73 Million euros, ”stated the company.

There are positive signals from the Croatian government. Transport Minister Oleg Butković is quoted as saying that a solution must be found. A path will be taken that corresponds to European law. As soon as the crisis is over, they want to try again to sell Croatia Airlines.