In Croatia, the allocation of the subsidized domestic routes to Trade Air and Croatia Airlines has been delayed again. The contracts were supposed to come into force in June 2022, but there have been numerous delays. It is now assumed to be mid-September 2022.
The two airlines were the only bidders in the new tender. The government extended the bidding period in hopes of getting more bids. But this was not so. Trade Air provided the domestic PSO routes for lack of subsidies already at the beginning of May 2022 and Vsuspended the resumption several times. These should not be flown before mid-September 2022.
The Croatian airline does not operate the subsidized domestic flights itself, but hires a subcontractor to do so as part of a wet lease agreement. According to the current information, a Saab 340 turboprop aircraft is to be used in the future.
In contrast to Trade Air, the competitor Croatia Airlines has not discontinued flight operations on the PSO routes, but continues to serve them on its own account. However, the company has heard that these domestic flights are making a loss, which is why there is a great interest in the subsidy agreements being concluded quickly.