Blerg
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News Report: OU bankruptcy imminent

Fri Nov 09, 2018 6:55 am

Good morning,

According to a local Croatian newspaper (Index) the situation at the country's national carrier seems to be going from bad to worse. According to their sources, the airline needs at least 150 million Kuna (20 million Euros) to remain operational for the next six months.

In the first nine months, Croatia Airlines recorded a net loss of some 34.4 million Kuna.

The supervisory board estimates that 150 million Kuna is needed to remain operational but if they end up not paying their bills to their 'providers' (I don't know what is meant by that) then they will need around 70 million.

Airline owns its maintenance department as well as two engines. However, they say that even if they sell those it wouldn't be enough to gather enough cash to pay their bills. (I think the newspaper forgot to mention 4 LHR slots)

OU was more or less pushed out of the tourist market on the coast, I think their marketshare stands at around 30%, same as easyJet. Their biggest challenge is the extreme seasonality of the Croatian market meaning that when winter comes there is very limited demand.

OU's previous CEO, who is currently running Gulf Air, said some time ago that when winter comes all of the airline's flights are unprofitable. OU is heavily reliant on LH and Star Alliance hubs.

Source in Croatian:
https://www.index.hr/vijesti/clanak/ind ... 40920.aspx
 
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CarbonFibre
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 8:32 am

They were supposed to be leaving LHR about two years ago. Nothing happened.
 
SCQ83
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 8:44 am

Croatia is a bit tricky because there are the airports (Zagreb, Split and Dubrovnik) which are quite similar in PAX numbers. If OU goes under, it will be interesting to see who will fly those busy domestic routes.
 
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TheLion
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 9:21 am

I hope they survive. Diversity and choice are ever-diminishing in the aviation world and that’s not a good thing by any metric.

Of course it’s understandably difficult for smaller flag carrriers to find a niche. And as OU are part of Star rather than SkyTeam or oneworld, any opportunity to be a connecting carrier between east and west has been lost to LH Group.
 
stylo777
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 9:28 am

I'm not sure whether it's worth to invest and what the value of OU is, but it might be interesting for the LH Group still.
Should be relatively easy to integrate 13 aircraft (319/320/DH8) under the umbrella of Eurowings.
 
Obzerva
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 10:51 am

I thought I read something about a potential tie up with LO and OU.
Not that I think that should happen, LO has more than enough on it's plate with the expansion in to BUD and Nordica.

Agree with stylo777 it sounds like it could be relatively easy fleet match for Eurowings.

It's a shame EY have put their chequebook away lately, they could have done something with OU and JU
Just
A
Thought
:stirthepot:
 
kaitak
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 11:54 am

Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.
 
Nick123
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 12:19 pm

How about Aegean Airlines buying them?
They have done a great job in a very similar market. The Greek market is similar to Croatia, very busy during the summer, and very low during winter.
 
devron
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 12:22 pm

Really that would be a petty but with Ryanair & EasyJet offering direct flight to numerous markets it is hard to compete. Would be more difficult/expensive for the local population to correct to long haul flights.
 
Blerg
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 1:16 pm

kaitak wrote:
Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.


Actually those were not operated from ZAG but from OSI. They were teamed up with some tour operator but it didn't work out in the end. A friend of mine flew once with them and they were 25 passengers onboard. OU considered ZAG-DUB but nothing came out of it.

SCQ83 wrote:
Croatia is a bit tricky because there are the airports (Zagreb, Split and Dubrovnik) which are quite similar in PAX numbers. If OU goes under, it will be interesting to see who will fly those busy domestic routes.


ZAG-DBV might work but all other destinations are easily reachable by road. Croatian government is subsidizing these domestic flights so there might be some interested parties who might apply.
 
SCQ83
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 1:31 pm

Blerg wrote:
ZAG-DBV might work but all other destinations are easily reachable by road. Croatian government is subsidizing these domestic flights so there might be some interested parties who might apply.


Zagreb-Split is 4h30' by road and those are the two largest Croatian cities. I wouldn't call that easily reachable.

For a reason ZAG-SPU and ZAG-DBV are flown multiple times a day by OU. And then there are also ZAG-ZAD and ZAG-PUY and the OSPs between the "provincial cities" (e.g. SPU-PUY) which are operated by Trade Air.

The Croatian domestic market is large and traffic is split equally between three airports. That is a major difference between Croatia and any other "small" country in the area like Hungary, Serbia, Slovenia, Bosnia, etc. where the capital sees the most traffic and there are no domestic flights. That makes it more challenging to operate.
 
lhrsfosyd
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 1:33 pm

LO could deploy Nordica frames out of ZAG in case of OU's bancrupcy.
 
pilotfox
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 1:35 pm

I am curious if anyone would pick up the domestic flights, just flew 3 legs with them this week and all the flights were full, VIE-ZAG-DBV, and SPU-ZAG Our SPU-ZAG flight was only $40 so they cant be making money on that. Most of the pax on the flights seem to be of non-croatians. Wonder how imminent bankruptcy would be, have one last flight with them ZAG-VIE on sunday.
 
Blerg
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 2:06 pm

SCQ83 wrote:
Blerg wrote:
ZAG-DBV might work but all other destinations are easily reachable by road. Croatian government is subsidizing these domestic flights so there might be some interested parties who might apply.


Zagreb-Split is 4h30' by road and those are the two largest Croatian cities. I wouldn't call that easily reachable.

For a reason ZAG-SPU and ZAG-DBV are flown multiple times a day by OU. And then there are also ZAG-ZAD and ZAG-PUY and the OSPs between the "provincial cities" (e.g. SPU-PUY) which are operated by Trade Air.

The Croatian domestic market is large and traffic is split equally between three airports. That is a major difference between Croatia and any other "small" country in the area like Hungary, Serbia, Slovenia, Bosnia, etc. where the capital sees the most traffic and there are no domestic flights. That makes it more challenging to operate.


Split is some 400 km from Zagreb so it takes way less than 4 hours to drive. Also, with ZAG's fees it's difficult for OU to compete against minibus and bus companies in general. A bus takes a bit longer but they are more flexible on luggage and it costs around 15 Euros.
Like I said before, all of OU's flights outside the busy summer season are loss making, their domestic flights included. There is a reason why the Croatian government and the city of Dubrovnik subsidize flights within Croatia.
As for ZAG-OSI, that's a joke. It's another subsidized route operated by the E120 that's half-full on a very good day.

I am curious if anyone would pick up the domestic flights, just flew 3 legs with them this week and all the flights were full, VIE-ZAG-DBV, and SPU-ZAG Our SPU-ZAG flight was only $40 so they cant be making money on that. Most of the pax on the flights seem to be of non-croatians. Wonder how imminent bankruptcy would be, have one last flight with them ZAG-VIE on sunday.


I wouldn't worry too much about it as they still have four LHR slots to sell. No need to worry before that happens.
 
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TripleDelta
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 3:09 pm

Blerg wrote:
Actually those were not operated from ZAG but from OSI. They were teamed up with some tour operator but it didn't work out in the end. A friend of mine flew once with them and they were 25 passengers onboard. OU considered ZAG-DUB but nothing came out of it.


ZAG-DUB had been flown regularly throughout most of the summer (as a late addition to the summer schedule). OU512/513.

Blerg wrote:
Split is some 400 km from Zagreb so it takes way less than 4 hours to drive


In the summer it can take close to five hours.
Hawkeye: "It doesn't make any sense."
Radar: "Well, none of it makes any sense. You just have to send in the right number of forms." - MASH 4077
 
Blerg
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 3:13 pm

TripleDelta wrote:
Blerg wrote:
Actually those were not operated from ZAG but from OSI. They were teamed up with some tour operator but it didn't work out in the end. A friend of mine flew once with them and they were 25 passengers onboard. OU considered ZAG-DUB but nothing came out of it.


ZAG-DUB had been flown regularly throughout most of the summer (as a late addition to the summer schedule). OU512/513.

Blerg wrote:
Split is some 400 km from Zagreb so it takes way less than 4 hours to drive


In the summer it can take close to five hours.


No idea how I missed that one. Thanks for pointing it out.

As for the bus, my point is that those who decide to take the bus are usually price sensitive and for them OU's fares are too expensive.
 
JAmie2k9
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 3:17 pm

kaitak wrote:
Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.


It was announced as May-early Oct and on sale for 2019 (same period as 2018).
 
JAmie2k9
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 3:19 pm

delete
 
SCQ83
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 3:32 pm

For instance according to ZAG airport website:

DBV is 21w
SPU is 15w
PUY is 6w

So that is 42 weekly flights in low season. That is a substantial amount of traffic. ZAG new airport has even a ground floor area dedicated to those regional flights.

As those flights used by Croatians or foreigners, I don't see what the deal is. Dubrovnik is a small city so those flights will largely be used by tourists flying to ZAG (e.g. Korean Air, Emirates, Croatian itself) and interlining with OU. Split usually will have more Croatians on board since it is a way bigger city than Dubrovnik and a more seasonal destination than DBV.

I haven't included Osijek because that is an OSP flown by Trade Air.
 
klakzky123
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 4:45 pm

kaitak wrote:
Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.


This is the consequence of the EU in some industries. Aviation in the EU is fully open to all EU airlines. Countries can't do anything to protect flag carriers from LCCs like Ryanair and Easyjet once they join the EU.
 
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OA940
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 5:35 pm

Nick123 wrote:
How about Aegean Airlines buying them?
They have done a great job in a very similar market. The Greek market is similar to Croatia, very busy during the summer, and very low during winter.


Well, Greece is a significantly larger market, plus A3 has the obvious benefit of having one airport base instead of 3.
A350/CSeries = bae
 
Blerg
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 5:44 pm

klakzky123 wrote:
kaitak wrote:
Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.


This is the consequence of the EU in some industries. Aviation in the EU is fully open to all EU airlines. Countries can't do anything to protect flag carriers from LCCs like Ryanair and Easyjet once they join the EU.


OU was maybe crushed on the coast but their current status can only be blamed on a series of really bad CEOs who had no idea how to run an airline. When they were forced to retreat from the coast, that's when the time was right to rethink the structure of the fleet. I fear that the A319s and the A320s in such large numbers were too much of an aircraft for them. They should have switched to having all regional aircraft with maybe one or two A320s for summer charters. Like this they are struggling while losses keep on mounting.

SCQ83 wrote:
For instance according to ZAG airport website:

DBV is 21w
SPU is 15w
PUY is 6w

So that is 42 weekly flights in low season. That is a substantial amount of traffic. ZAG new airport has even a ground floor area dedicated to those regional flights.

As those flights used by Croatians or foreigners, I don't see what the deal is. Dubrovnik is a small city so those flights will largely be used by tourists flying to ZAG (e.g. Korean Air, Emirates, Croatian itself) and interlining with OU. Split usually will have more Croatians on board since it is a way bigger city than Dubrovnik and a more seasonal destination than DBV.

I haven't included Osijek because that is an OSP flown by Trade Air.


Like I already said, domestic routes receive subsidies so they are no commercially viable... at least not outside the busy summer months. Also, OU's European network is rather limited and they mostly fly to places that are already connected with the Croatian coast with non-stop flights.
I mean OU has been incapable of introducing non-stop flights to Rome from Zagreb. All of them stop either in SPU or DBV. They are very static which is why they are here where they are today. Look at their route map, they only started expanding eastward last summer when they introduced OTP and PRG. Until then their route map was extremely uninspiring, like a glorified 'gasterbajter' bus company.
 
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mercure1
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 6:32 pm

As we have said in previous threads, we have too many small legacy carriers still in Europe many limping along with no reason for their existence outside of national pride.

While I have no problem with state funded carriers, the reality of the EU is that the market must be allowed to cleanse these weaker players.
 
Nick123
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 6:51 pm

OA940 wrote:
Nick123 wrote:
How about Aegean Airlines buying them?
They have done a great job in a very similar market. The Greek market is similar to Croatia, very busy during the summer, and very low during winter.


Well, Greece is a significantly larger market, plus A3 has the obvious benefit of having one airport base instead of 3.

Actually, Aegean has multiple bases, especially during summer. It has ATH, SKG, and HER is pretty big during summer.

It would be nice if Aegean bought Croatian
 
Blerg
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Re: News Report: OU bankruptcy imminent

Fri Nov 09, 2018 8:01 pm

Nick123 wrote:
OA940 wrote:
Nick123 wrote:
How about Aegean Airlines buying them?
They have done a great job in a very similar market. The Greek market is similar to Croatia, very busy during the summer, and very low during winter.


Well, Greece is a significantly larger market, plus A3 has the obvious benefit of having one airport base instead of 3.

Actually, Aegean has multiple bases, especially during summer. It has ATH, SKG, and HER is pretty big during summer.

It would be nice if Aegean bought Croatian


What exactly would Aegean gain from that?
 
Cunard
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 4:44 am

Blerg wrote:
SCQ83 wrote:
Blerg wrote:
ZAG-DBV might work but all other destinations are easily reachable by road. Croatian government is subsidizing these domestic flights so there might be some interested parties who might apply.


Zagreb-Split is 4h30' by road and those are the two largest Croatian cities. I wouldn't call that easily reachable.

For a reason ZAG-SPU and ZAG-DBV are flown multiple times a day by OU. And then there are also ZAG-ZAD and ZAG-PUY and the OSPs between the "provincial cities" (e.g. SPU-PUY) which are operated by Trade Air.

The Croatian domestic market is large and traffic is split equally between three airports. That is a major difference between Croatia and any other "small" country in the area like Hungary, Serbia, Slovenia, Bosnia, etc. where the capital sees the most traffic and there are no domestic flights. That makes it more challenging to operate.


Split is some 400 km from Zagreb so it takes way less than 4 hours to drive. Also, with ZAG's fees it's difficult for OU to compete against minibus and bus companies in general. A bus takes a bit longer but they are more flexible on luggage and it costs around 15 Euros.
Like I said before, all of OU's flights outside the busy summer season are loss making, their domestic flights included. There is a reason why the Croatian government and the city of Dubrovnik subsidize flights within Croatia.
As for ZAG-OSI, that's a joke. It's another subsidized route operated by the E120 that's half-full on a very good day.

I am curious if anyone would pick up the domestic flights, just flew 3 legs with them this week and all the flights were full, VIE-ZAG-DBV, and SPU-ZAG Our SPU-ZAG flight was only $40 so they cant be making money on that. Most of the pax on the flights seem to be of non-croatians. Wonder how imminent bankruptcy would be, have one last flight with them ZAG-VIE on sunday.


I wouldn't worry too much about it as they still have four LHR slots to sell. No need to worry before that happens.[/quote

In January 2017 Croatian Airlines sold five of their LHR take off and landing slots to Delta for USD19.5 Million.

The slots were immediately leased back to Croatia Airlines but were supposed to return to Delta at the end of the IATA summer season that ended on the 29 October 2018.

Not sure if Croatian Airlines have actually returned these slots to Delta or have kept them on lease.

I'm also not sure if the airline still has any remaining slots of their own at LHR, I take it from your post above that Croatian Airlines still have four remaining slots that they own, if so if all four were sold they could be worth at least between 18 to 20 million USD and plug that hole the airline currently finds itself in.

They should sell there remaining slots at LHR and move their flights to LGW and consolidate their London operations at that airport ''an airport they already use'' as it would be the best option for Croatian Airlines considering their current financial status.

I wonder how much feed or connections Croatian Airlines cater for at LHR and how a complete move to LGW would affect this!
 
Blerg
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 6:34 am

Cunard wrote:
Blerg wrote:
SCQ83 wrote:

Zagreb-Split is 4h30' by road and those are the two largest Croatian cities. I wouldn't call that easily reachable.

For a reason ZAG-SPU and ZAG-DBV are flown multiple times a day by OU. And then there are also ZAG-ZAD and ZAG-PUY and the OSPs between the "provincial cities" (e.g. SPU-PUY) which are operated by Trade Air.

The Croatian domestic market is large and traffic is split equally between three airports. That is a major difference between Croatia and any other "small" country in the area like Hungary, Serbia, Slovenia, Bosnia, etc. where the capital sees the most traffic and there are no domestic flights. That makes it more challenging to operate.


Split is some 400 km from Zagreb so it takes way less than 4 hours to drive. Also, with ZAG's fees it's difficult for OU to compete against minibus and bus companies in general. A bus takes a bit longer but they are more flexible on luggage and it costs around 15 Euros.
Like I said before, all of OU's flights outside the busy summer season are loss making, their domestic flights included. There is a reason why the Croatian government and the city of Dubrovnik subsidize flights within Croatia.
As for ZAG-OSI, that's a joke. It's another subsidized route operated by the E120 that's half-full on a very good day.

I am curious if anyone would pick up the domestic flights, just flew 3 legs with them this week and all the flights were full, VIE-ZAG-DBV, and SPU-ZAG Our SPU-ZAG flight was only $40 so they cant be making money on that. Most of the pax on the flights seem to be of non-croatians. Wonder how imminent bankruptcy would be, have one last flight with them ZAG-VIE on sunday.


I wouldn't worry too much about it as they still have four LHR slots to sell. No need to worry before that happens.[/quote

In January 2017 Croatian Airlines sold five of their LHR take off and landing slots to Delta for USD19.5 Million.

The slots were immediately leased back to Croatia Airlines but were supposed to return to Delta at the end of the IATA summer season that ended on the 29 October 2018.

Not sure if Croatian Airlines have actually returned these slots to Delta or have kept them on lease.

I'm also not sure if the airline still has any remaining slots of their own at LHR, I take it from your post above that Croatian Airlines still have four remaining slots that they own, if so if all four were sold they could be worth at least between 18 to 20 million USD and plug that hole the airline currently finds itself in.

They should sell there remaining slots at LHR and move their flights to LGW and consolidate their London operations at that airport ''an airport they already use'' as it would be the best option for Croatian Airlines considering their current financial status.

I wonder how much feed or connections Croatian Airlines cater for at LHR and how a complete move to LGW would affect this!



With them flying to pretty much every Star Alliance hub out there, I doubt many people connect in LHR, especially now when they fly 4 times per week. My guess is that this route is mostly used by locals. I think Zagreb is the only EU capital city not to have an LCC link with London.
 
SCQ83
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 7:08 am

devron wrote:
Really that would be a petty but with Ryanair & EasyJet offering direct flight to numerous markets it is hard to compete. Would be more difficult/expensive for the local population to correct to long haul flights.


As other poster has mentioned, integrating it in Eurowings would be the most logical step.

Croatia Airlines acts already as a feeder for Lufthansa:

ZAG: OU flies to BRU, FRA, MUC, VIE and ZRH year-round and DUS seasonally

SPU: OU flies to FRA and MUC year-round and DUS, VIE and ZRH seasonally

DBV: OU flies to FRA year-round and DUS, MUC and ZRH seasonally

PUY: OU flies to FRA and ZRH seasonally

RJK: OU flies to MUC year-round (this is a new route this winter)

ZAD: OU flies to FRA seasonally

So Croatia Airlines flies already 9 year-round and 10 additional seasonal routes to Lufthansa Group hubs.

Eurowings / Lufthansa has also a massive presence in the Croatian market:

ZAG: LH (FRA, MUC), OS (VIE), SN (seasonal BRU), LX (seasonal ZRH) and EW (CGN, DUS, STR, TXL and seasonal HAM)

SPU: LH (seasonal FRA and MUC), OS (seasonal VIE), WK (seasonal ZRH), SN (seasonal BRU) and EW (CGN, DUS, MUC and STR and seasonal DTM, HAJ, HAM, NUE, SZG and TXL)

DBV: LH (seasonal FRA and MUC), OS (seasonal VIE), WK (seasonal ZRH), SN (seasonal BRU) and EW (seasonal CGN, DUS, HAJ, HAM, MUC, STR and TXL)

PUY: LX (seasonal GVA), WK (seasonal ZRH) and EW (seasonal CGN, DUS, HAM, STR and TXL)

RJK: EW (DUS and seasonal CGN, HAJ, HAM, STR and TXL)

ZAD: LH (seasonal FRA and MUC), SN (seasonal BRU) and EW (seasonal CGN, DUS, HAM, MUC, STR, TXL and VIE)

OSI: EW (seasonal CGN and STR)

So Lufthansa group flies 12 year-round routes to Croatia and a whopping 50 seasonal routes.

So in total there are 81 routes (some of them overlapping) flown by OU to Lufthansa hubs and Lufthansa Group to Croatia.
 
Skyblue39
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 10:03 am

kaitak wrote:
Sad to see another European flag carrier go under. Hope it doesn't happen.

They recently cut a newly introduced DUB route after only a few months.


Huh? It’s a summer seasonal DUB-ZAG route and was never intended to be year round. It is on sale again a summer seasonal for next year...
 
Blerg
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 10:39 am

SCQ83 wrote:
devron wrote:
Really that would be a petty but with Ryanair & EasyJet offering direct flight to numerous markets it is hard to compete. Would be more difficult/expensive for the local population to correct to long haul flights.


As other poster has mentioned, integrating it in Eurowings would be the most logical step.

Croatia Airlines acts already as a feeder for Lufthansa:

ZAG: OU flies to BRU, FRA, MUC, VIE and ZRH year-round and DUS seasonally

SPU: OU flies to FRA and MUC year-round and DUS, VIE and ZRH seasonally

DBV: OU flies to FRA year-round and DUS, MUC and ZRH seasonally

PUY: OU flies to FRA and ZRH seasonally

RJK: OU flies to MUC year-round (this is a new route this winter)

ZAD: OU flies to FRA seasonally

So Croatia Airlines flies already 9 year-round and 10 additional seasonal routes to Lufthansa Group hubs.

Eurowings / Lufthansa has also a massive presence in the Croatian market:

ZAG: LH (FRA, MUC), OS (VIE), SN (seasonal BRU), LX (seasonal ZRH) and EW (CGN, DUS, STR, TXL and seasonal HAM)

SPU: LH (seasonal FRA and MUC), OS (seasonal VIE), WK (seasonal ZRH), SN (seasonal BRU) and EW (CGN, DUS, MUC and STR and seasonal DTM, HAJ, HAM, NUE, SZG and TXL)

DBV: LH (seasonal FRA and MUC), OS (seasonal VIE), WK (seasonal ZRH), SN (seasonal BRU) and EW (seasonal CGN, DUS, HAJ, HAM, MUC, STR and TXL)

PUY: LX (seasonal GVA), WK (seasonal ZRH) and EW (seasonal CGN, DUS, HAM, STR and TXL)

RJK: EW (DUS and seasonal CGN, HAJ, HAM, STR and TXL)

ZAD: LH (seasonal FRA and MUC), SN (seasonal BRU) and EW (seasonal CGN, DUS, HAM, MUC, STR, TXL and VIE)

OSI: EW (seasonal CGN and STR)

So Lufthansa group flies 12 year-round routes to Croatia and a whopping 50 seasonal routes.

So in total there are 81 routes (some of them overlapping) flown by OU to Lufthansa hubs and Lufthansa Group to Croatia.


Even for LH it would be easier to let OU go bankrupt and to open a mini base there. It would be much cheaper and easier to do it like that. They could base two, three CRJ-900 which should be enough for year-round operations. Any additional capacity, if needed, can be dispatched from another hub.
 
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aemoreira1981
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Re: News Report: OU bankruptcy imminent

Sat Nov 10, 2018 4:04 pm

mercure1 wrote:
As we have said in previous threads, we have too many small legacy carriers still in Europe many limping along with no reason for their existence outside of national pride.

While I have no problem with state funded carriers, the reality of the EU is that the market must be allowed to cleanse these weaker players.


I was thinking this precisely. The problem is that pride will prevent the airlines that comprised the former Yugoslavia from amalgamating and integrating, since there will be disputes over who gets what service. The idea of a super-regional airline isn't a bad idea, including one for the area of Romania and Bulgaria. This is an area for which the Airbus A220-100/300 would be the perfect-sized aircraft.
 
Blerg
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Re: News Report: OU bankruptcy imminent

Sun Nov 11, 2018 5:53 am

aemoreira1981 wrote:
mercure1 wrote:
As we have said in previous threads, we have too many small legacy carriers still in Europe many limping along with no reason for their existence outside of national pride.

While I have no problem with state funded carriers, the reality of the EU is that the market must be allowed to cleanse these weaker players.


I was thinking this precisely. The problem is that pride will prevent the airlines that comprised the former Yugoslavia from amalgamating and integrating, since there will be disputes over who gets what service. The idea of a super-regional airline isn't a bad idea, including one for the area of Romania and Bulgaria. This is an area for which the Airbus A220-100/300 would be the perfect-sized aircraft.


Integration among ex-YU airlines doesn't work and it will never work for obvious reasons. YM and JU are in a better position because they are faced with far less indirect competition than LJU/JP and ZAG/OU.

If Slovenia and Croatia can't/won't synchronize their aviation market then it's silly to expect anyone else to do it. With Ryanair expanding in BNX and ZAD while W6 flies out of TZL and OSI, pressure will be even greater on Ljubljana and Zagreb.
 
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Re: News Report: OU bankruptcy imminent

Sun Nov 11, 2018 12:43 pm

I would expect the Croatian government to request some guarantees from Lufthansa / Eurowings in terms of continuing certain routes, keeping a certain number of staff, etc.

In fact the current OU fleet would match the EW fleet (maybe a different cabin config) ... so this part won’t be an issue. Not sure if they need to maintain their own OU AOC in the future or if they can operate all / most routes under the E2 AOC (since E2 operation is cheaper than EW operation; depends on possible non-EU routes).
 
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ro1960
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Re: News Report: OU bankruptcy imminent

Sun Nov 11, 2018 1:35 pm

Blerg wrote:
Split is some 400 km from Zagreb so it takes way less than 4 hours to drive.


4 hours via toll road, closer to 5 hours otherwise and that's in good traffic conditions.
You may like my airport photos:
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Blerg
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Re: News Report: OU bankruptcy imminent

Sun Nov 11, 2018 2:02 pm

ro1960 wrote:
Blerg wrote:
Split is some 400 km from Zagreb so it takes way less than 4 hours to drive.


4 hours via toll road, closer to 5 hours otherwise and that's in good traffic conditions.


Point being that the cheapest fare to fly from ZAG to SPU is €80 and it doesn't include any luggage. A lot of people are price sensitive and would opt for alternative means of transport which tend to be cheaper.. despite taking longer. We are talking about the Balkans here, people go for the bus for much longer trips.
 
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ro1960
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Re: News Report: OU bankruptcy imminent

Sun Nov 11, 2018 2:26 pm

Blerg wrote:
ro1960 wrote:
Blerg wrote:
Split is some 400 km from Zagreb so it takes way less than 4 hours to drive.


4 hours via toll road, closer to 5 hours otherwise and that's in good traffic conditions.


Point being that the cheapest fare to fly from ZAG to SPU is €80 and it doesn't include any luggage. A lot of people are price sensitive and would opt for alternative means of transport which tend to be cheaper.. despite taking longer. We are talking about the Balkans here, people go for the bus for much longer trips.


I was just bringing a detail to the discussion, not arguing against you.
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