November the 14th, 2020 – Croatia Airlines has been struggling since long before the coronavirus pandemic became an additional, extremely heavey burden. The Croatian company has been on the search for a strategic partner to help pull it out of the proverbial mud for a significant amount of time now, and as losses continue to be posted and the multitude of problems continue for the airline, the state has decided to step in with a ”state injection” worth an enormous amount of cash.
As Poslovni Dnevnik/Jadranka Dozan writes on the 13th of November, 2020, in one month’s time (more precisely on December the 14th, 2020), Croatia Airlines will hold a General Assembly at which the main item on the agenda will be an increase in share capital. This enfeebled state-owned airline will be recapitalised by the state with an enviable state injection of 350 million kuna.
The announcement of the assembly states that the purpose of the increase in share capital is to return the state of capital and reserves of the company to the pre-crisis levels caused by the ongoing global pandemic, ie, as it was on the 31st of December, 2019. Despite the fact that, as previously mentioned, the airline has been experiencing serious issues for some time now, things were at least more stable before the pandemic turned the world, and as such this company, on its head.
The explanation from Croatia Airlines states that this state injection, which us undoubtedly much needed, is “one of the applicable financial assistance measures of the Republic of Croatia based on the document of the European Commission (EC) which defines the Temporary Framework for State Aid Measures to Support the Economy during the COVID-19 Pandemic.”