• 

  Croatia Airlines

  IATA/ICAO Code:

  OU/CTN

  Airline Type:

  Full Service Carrier

  Hub(s):

  Zagreb Airport

  Year Founded:

  1989

  Alliance:

  Star Alliance

  CEO:

  Jasmin Bajić

  Country:

  Croatia

• 

  Airbus

  Stock Code:

  AIR

  Date Founded:

  1970-12-18

  CEO:

  Guillaume Faury

  Headquarters Location:

  Toulouse, France

  Key Product Lines:

  Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380

  Business Type:

  Planemaker

It’s official: Croatia Airlines is purchasing six brand new Airbus A220 aircraft, confirming to Simple Flying that it will convert its A320neo order, which was previously an A319 order. The choice comes after a year of deliberations that saw Croatia Airlines choosing between the Embraer E2, the Airbus A220, and even the Boeing 737 MAX.

An all-A220 fleet by 2026

Croatia Airlines will replace its entire fleet over the next four years, in accordance with the post-COVID strategy it adopted in August 2021.

Currently, its active fleet consists of six Dash 8 Q400 aircraft, five Airbus A319s, and a single Airbus A320. However, the airline wants to have a single-type fleet by 2026, and it has chosen the Airbus A220 as its preferred aircraft type.

What is Croatia Airlines buying?

The current plan is as follows: Croatia Airlines will purchase six brand new Airbus A220 aircraft with a capacity to seat 127 and 148 passengers.

The order is actually a conversion from an order that is over 14 years old. Back in 2008, Croatia Airlines placed an order for a set of brand new Airbus A319 aircraft. In 2015, this order was converted to an Airbus A320neo order, but it has been known for years now that the airline was not keen to take these on because their capacity was too great for the seasonal nature of the market in which Croatia Airlines operates.

Negotiations between Croatia Airlines and Airbus to end the A320neo order have been ongoing since before COVID. They have now been concluded. As a result of the conversion, Croatia Airlines will not lose the 10 million euros ($10 million) it paid for a deposit for this order.

Airbus was in Zagreb in September 2021 to pitch the A220 to Croatia Airlines. Then, Embraer came to Zagreb in October 2021 to showcase the E195-E2. It was even in talks with Boeing, with a Boeing spokesperson confirming the following to Simple Flying in February 2022:

“We are currently in discussion with Croatia Airlines regarding its future fleet requirements and single-aisle renewal.”

However, Boeing was never a realistic option as Croatia Airlines has not operated Boeing aircraft for 25 years. Embraer, on the other hand, would have been a good fit for Croatia Airlines.

Why does Croatia Airlines need a new fleet?

In its early beginnings 30 years ago, Croatia Airlines operated a diverse fleet of ATR, Boeing 737, Cessna, BAe 146, Piper PA-31T Cheyenne, and Hawker-Siddeley aircraft.

The airline is facing intense pressures in its home market, which are impacting its profitability. In its base, Zagreb Airport (ZAG), Ryanair opened a Lauda Europe base in 2021 and launched an incredible 24 new routes in just six months.

On the Croatian coast, Croatia Airlines is not capturing even a fifth of the market share during the summer months. In Zadar Airport (ZAD), Ryanair has a network of 45 international routes, while Croatia Airlines has none. In Split (SPU), it is competing against more than 40 airlines.

In late autumn, early spring, and winter months, demand to and from Croatia is much weaker, and so Croatia Airlines’ Airbus A320 family aircraft are simply too large to be profitable.

The airline has been loss-making since 2017 when it sold four pairs of Heathrow slots to cover its operational losses. Now, it hopes to turn around its fortunes with a new single-fleet strategy.

What do you think of Croatia Airlines ordering the Airbus A220 instead of the Embraer E2? Let us know what you think of this news in the comments below.