PRIVATISATION: Government Re-Launches Privatisation of Croatia Airlines
The government adopted a decision on 9 October to re-launch the privatisation of the state-owned airline company, Croatia Airlines (CA), after the invitation to tender in 2013 produced no offers. The state currently holds 90% of the national carrier, valued at €50 million.
CA had accumulated heavy losses in the period 2008-2012. Consequently, at the end of 2012, the government decided to implement a recapitalisation and restructuring programme. The recapitalisation eventually reached €114 million; in particular, the government turned its financial claims towards CA into capital/ownership. After securing approval from the Croatian Competition Agency in June 2013, the company began implementing the €259 million restructuring plan, scheduled to last until end of 2015 (see LPJs 033, 042).
The plan includes further redundancy measures and the closure of retail units abroad in 2015. Finally, in October 2013, the government invited investors to express interest in buying a 49% stake in the carrier; no bid was submitted by the tender deadline in November 2013.
According to the above decision, the future strategic partner will be required to expand the transport network and increase CA’s market share, conduct recapitalisation…