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The Union Claims That Croatia Airlines Is on the Verge of Collapse, Cancels Flights, and Staff Are Leaving

The Croatian Union of Air Traffic Pilots reported on Sunday that they have sent a second open letter to the Prime Minister of the Republic of Croatia, in which they once again warned him about what they claim is an alarming situation in the company and a “debacle” regarding the selection of a new director.

In the statement, they remind that they sent an appeal to the Prime Minister back in January, and at a meeting on February 14, they informed the Minister of Transport about the problems of Croatia Airlines through a professional presentation.

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“At that time, we warned about the alarming situation in the company and expressed concern that the entire system of Croatia Airlines would collapse. Unfortunately, it has turned out that we were right. The company is on the brink of collapse, and the season has begun,” state the Croatian Union of Air Traffic Pilots.

The reason for this, they claim, is unrealistic planning of deadlines for winter maintenance of aircraft, which is why the summer flight schedule was launched without two of its own aircraft that will be delayed in entering service by a month and a half. Therefore, they add, Airbus A319/A320 aircraft are being used for flights originally scheduled for Dash Q400, resulting in 174-seat planes carrying only 17 passengers and incurring enormous losses.

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After the number of flights increased in March, and the company could no longer manage with its own ‘substitutes’, it began renting very expensive aircraft to fill in for the planes that were delayed from maintenance. In just 12 days, from March 23 to April 3, they rented 13 aircraft from three different carriers from Eastern Europe. However, the company is finding it increasingly difficult to rent aircraft, as available planes in the European market were already occupied by long-term leases in April. Due to the inability to rent the necessary number of aircraft, Croatia Airlines began canceling flights, including those subsidized by the state. In just the last few days, 18 flights have been canceled, which is nearly 3 flights per day. Since mid-March, there have been very few days without canceled flights, and on some days, there were several cancellations, the union reported.

They claim that half of the mechanics, a third of the pilots, and a quarter of the flight attendants have left the company, and the staff exodus continued into 2018.

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In addition, they add, by selling London landing rights (slots) and assets, the company has lost the substance and resources needed to exit the crisis. Borrowing from banks has become more difficult and is now subject to draconian conditions, they note.

On top of all this, Croatia Airlines has been without a fully mandated Management Board for a year and a half. The third repeated tender is still inexplicably postponed, they warned, emphasizing that for Croatia Airlines, the selection of a new director is a choice between two options: bankruptcy or a possible recovery of the company.

From the HSPP, among the four candidates for director, they supported Boško Matković, “whom the industry remembers for the very good condition in which he left Zagreb Airport.”

They also emphasized that they have been without a collective agreement for 17 months and that they have canceled a strike twice because the relevant minister assured them that the problems would be resolved.