Swinging to Croatia

Swinging to Croatia
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Garuda Indonesia interested in Croatia Airlines stake Despite previous plans not to privatise the Croatian national carrier until at least 2015, the country’s Ministry for Sea, Transport and Infrastructure is set to launch tender procedures for the airline’s sale by October 15. According to Croatian media reports, Garuda Indonesia and China Southern Airlines are interested in purchasing a stake in Croatia Airlines. A high ranking government delegation will travel to the Indonesian capital Jakarta next week upon the invitation of the Indonesian government where the sale of Croatia Airlines will be discussed. Tender procedures are likely to run until February 2014. It is the first time plans have been made for the sale of Croatia Airlines, a move previously ruled out. The airline has had a difficult year so far as it faced industrial action from employees and has been forced to cut down on its route network and fleet. Furthermore, Croatia Airlines has seen it its revenue and passenger numbers decline so far this year. With Croatia recently becoming a European Union member, the national carrier faces a more competitive market with strict limitations on government aid. (Ex-YU Aviation News)

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