The Management of Croatia Airlines Informed the Union That the Company Is Not on the Brink of Collapse

The management of Croatia Airlines is open to constructive dialogue with the unions for the benefit of employees and the company, and due to the suspension of collective negotiations, the provisions of the old collective agreement continue to be respected and applied, with the employer’s desire for negotiations to begin and conclude as soon as possible, the company emphasizes.

“The company expresses regret over the media statements of the HSPP union, as it would have been much more purposeful for certain problems and difficulties faced by the company to be discussed and attempted to be resolved jointly within the company, thereby avoiding a very negative impression and effect among passengers and business partners, as well as unnecessary damage to the company,” they commented in response to Hina’s inquiry regarding the union’s statements in recent weeks, during which the unions claimed that the company is in collapse, that it lacks sufficient staff, and more.

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In response, the company emphasizes that “Croatia Airlines is not on the brink of any ‘collapse’ and that operations have not and will not be called into question at any moment,” adding that “all recent public statements of the Croatian Union of Air Traffic Pilots (HSPP) are, unfortunately, motivated and related solely to the competition for the selection of a new Management Board,” noting that in December 2017, the unions did not accept the employer’s offer, which is why collective negotiations are currently in a state of suspension.

Continuation of Positive Trends

Reminding of the business results for 2017, which ended with a profit of nearly 25 million kuna, they emphasize that positive business trends continue in the first quarter of this year, when, while maintaining the number of flights at the same level as in the first quarter of last year, the number of passengers increased by 8 percent, and passenger revenues by 13 percent.

At the same time, a record average passenger cabin load factor (PLF) of 70.6 percent was recorded, which is 6 percentage points higher than in the same period of 2017 and, as they say, a structural shift important for the future of the company.

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In response to questions about the repairs of their own aircraft and the hiring of others, Croatia Airlines explains that as part of the standard and planned aircraft maintenance program, along with direct communication with the aircraft manufacturer, they identified the need for additional work, and this is the exclusive reason for the extension of maintenance deadlines.

“The company is guided in this, as always, by its business priority – flight safety, and in addition, additional technical interventions include mandatory modifications in the navigation system on the aircraft, which is financed by EU funds under strictly defined conditions of execution and on a precisely defined number of aircraft. Therefore, the accusations of alleged unrealistic and incorrect planning of aircraft technical maintenance are entirely unfounded,” the company explains.

They add that due to this, they have been hiring aircraft from other carriers, which is common for all smaller companies that do not have their own spare aircraft.

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For all previously hired aircraft, they state that they are registered in EU member states and from carriers certified under the international safety standard IOSA, which guarantees the highest safety standards.

They also report that from the beginning of the year until April 22, 6,459 flights have been completed, of which only about 1.5 percent were canceled.

Sufficient Staff for Flights and Aircraft Maintenance

Stating that Croatia Airlines has a sufficient number of flight crews and mechanics to carry out planned flight operations and aircraft maintenance services, they provide data that since November 4, 2017, or since the election of the current Management, not a single pilot has left the company, while three licensed mechanics have left.

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“In 2016, three pilots left, one of whom retired, and in 2017, five of them left, two of whom retired. From 2015 to 2017, 25 licensed mechanics left, which represents an annual turnover of less than 10 percent, and based on these facts, it is evident that there is no ‘exodus’ in the company,” say Croatia Airlines.

They conclude that they are ready for this tourist season in which they have once again expanded their destination network with four new routes – from May 3 from Zagreb to Dublin and Mostar, from May 5 from Split to Copenhagen, along with the already launched route (April 30) from Dubrovnik to Munich.