As Darko Bicak/Poslovni Dnevnik writes on the 5th of March, 2020, the concerning coronavirus situation which is wreaking havoc not only with public health but also with the global economy has now brought about the very first serious economic situations to Croatia’s doorstep. The Croatian Government has now decided to give up the search for a strategic partner for Croatia Airlines until further notice.
Namely, according to the Ministry of Maritime Affairs, Transport and Infrastructure, following the meeting of the Commission for the implementation of the procedure and proposing the selection of the strategic partner of Croatia Airlines, the current course of action of finding a strategic partner was discussed, as well as the impact that the appearance of COVID-19 has had on the situation in the aviation industry as a whole.
”Based on the discussion, the Commission decided, due to the unfavourable situation and the risks present in the sector, to adjust the dynamics of the whole process, so the process will be put to rest, in accordance with the deadlines set by the Croatian Government’s decision on creating the pre-requisite conditions for securing the process of recapitalisation of Croatia Airlines. The commission will continue to continuously monitor developments within the aviation sector,” a statement from the appropriate ministry said.
It’s worth recalling that it was announced earlier that the largest European independent regional airline, Britain’s Flybe, has collapsed. The utterly catastrophic business results in recent weeks when the fear of coronavirus saw a dramatic fall in the number of passengers using the airline, and consequently the interest of creditors and investors, stood out as one of the main reasons for Flybe’s downfall.
The British Government refused a much needed £100 million injection for the largest independent European airline, and Flybe has now entered administration.
In addition to the above situations with the Croatian Government, Croatia Airlines and Flybe collapsing, the World Aviation Federation has estimated that the worrying coronavirus pandemic could cost airlines more than 60 billion US dollars this year.
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