End of Havaş Monopoly: A Competitor is Coming to Zagreb Airport Soon

After years of announcements, Zagreb is finally set to receive a second ground services provider. The Croatian Civil Aviation Agency plans to make a final decision on September 15, and according to unofficial information, six companies are competing to enter the largest Croatian airport.

Their names are not yet known. The agency did not want to confirm the number of received bids or the identity of the participants. They explain that the process is still ongoing and that they do not disclose information about the bidders at this stage.

In earlier analyses of the opening of the Croatian market, major international handlers such as Swissport, Aviapartner, Menzies Aviation, dnate, Goldair Handling, SAS Ground Handling, and SkyPartner were mentioned among potential players.

The winner will become a competitor to Havaş, which is currently the only ground services provider for airlines at Franjo Tuđman Airport. This Turkish company entered Zagreb Airport in 2022 by acquiring MZLZ Ground Handling.

Seven Years to Win Over Airlines

The selected company will not immediately start handling luggage and servicing aircraft after the decision. According to the deadlines from the tender, the new provider must begin operations within four months of the decision, which means no later than mid-January 2027. After the selection, it will sign a contract with the airport management body for seven years.

The size of the business that the new competitor will be fighting for is best illustrated by the results of the current handler. Havaş-Ground Services generated €26.81 million in revenue last year, 11.5 percent more than the previous year, and had 602 employees.

However, the winner of the tender will not automatically receive a share of that business. The selection only opens the doors to Zagreb Airport, after which they must attract airlines that choose their ground services provider independently.

Havaş enters this competition with a significant initial advantage as it has been servicing airlines in Zagreb for years, possesses equipment and employees, and has established relationships with carriers. The new competitor will need to establish its own operation, secure equipment and employees, and convince some airlines to change their service provider.

Havaş’s relationship with Croatia Airlines is particularly important. The national carrier and Havaş renewed their ground services contract for another five years at the end of 2023. At the time of signing that contract, Croatia Airlines accounted for about 40 percent of traffic at Zagreb Airport. Therefore, for the future competitor, winning the tender will only be the first step. A much more challenging task will be to attract enough airlines to make entry into the Zagreb market profitable.

The ownership background of the existing handler is also interesting. Havaş is wholly owned by TAV Airports, which simultaneously holds a 15 percent stake in the consortium International Airport Zagreb, which manages the airport under a concession agreement until 2042.

After Zagreb, Split and Dubrovnik are Next

Zagreb is just the first step in opening the market. Other providers are expected to be selected for the airports in Split and Dubrovnik.

The agency states that the preparatory activities for both tenders are in the final phase and that their announcement is expected in the near future. They did not specify a concrete deadline this time.

In earlier responses to Lider, they announced that the tenders for Split and Dubrovnik would be issued during 2025. Currently, ground services in Split and Dubrovnik are provided by the airports themselves.