Croatia Airlines’ Supervisory Board accepts Post-COVID Strategy proposal and Croatia’s flag carrier’s new development path
31st August 2021, Zagreb
At today’s meeting of the Supervisory Board of Croatia Airlines, the Supervisory Board has accepted the Post-COVID Strategy proposal, which has been developed in collaboration with selected consultants – namely, Boston Consulting Group (BCG). This has opened the path for further talks with not only the owner of Croatia Airlines, the Republic of Croatia, but also other stakeholders important for the implementation of the said strategy, and for ensuring that Croatia Airlines, Croatia’s flag carrier and member of Star Alliance, has a successful and quality future.
Aiming to define strategic initiatives whose implementation will ensure that the company’s business operations remain sustainable in the future, the Post-COVID Strategy proposal thus represents Croatia Airlines’ new development cycle.
It is worth recalling that the COVID-19 pandemic caused an 83% drop in traffic in Croatia’s passenger air transport sector. The duration of the pandemic has also been reflected in the company’s business results in 2021. More specifically, in the period between January and June 2021, Croatia Airlines recorded a positive shift of HRK 25.8 million, which is a 15% increase compared to the same period of last year. IATA estimates that air traffic will recover gradually by 2024.
Croatia Airlines remains committed to its primary objective – connecting the Republic of Croatia with the world throughout the entire year, both in good and bad circumstances, as a major segment of Croatia’s transport infrastructure.
The Post-COVID Strategy confirms that Croatia Airlines is to increase the efficiency of its business operations and competitiveness, and that, in the coming period, the company is to manage key operational and structural challenges that include aircraft fleet renewal and flight network optimisation throughout the entire year. Taking account of the trends on Croatia’s highly competitive aviation market, fuel prices and CO2 emissions, and the goals of the European Green Deal, the initiatives defined in the strategy have no alternative, and the implementation of these initiatives takes advantage of the opportunities offered by the air traffic recovery goals in the next two years.
With a view to achieving the goals defined by the Post-COVID Strategy, Croatia Airlines will further digitise its business operations by transitioning to a new SAP system to use data more effectively, hone management skills at all levels of company management, insist on a balanced focus on quality, entrepreneurship, cost awareness, and innovation, and appreciate and value the cooperation of and initiatives put forward by Croatia Airlines’ employees and social partners, whose constructive involvement will unquestionably contribute to achieving the goals of the strategy, and to increasing productivity.
Once the Post-COVID Strategy proposal – which has today been accepted by the Supervisory Board of Croatia Airlines – is approved by the owner of Croatia Airlines, the company will enter a new development cycle. This cycle will include real transformation of existing models, and modes of operation. This transformation is expected to last three years, which correlates with the expected timeframe needed for the implementation of the most important strategic initiatives.