At Monday’s cabinet session government approved 600 million Kuna in state support to Croatia Airlines. 350 million Kuna will got to the recapitalization of the national air carrier, while 250 million will go to shareholder loans.
The decision, in accordance with the temporary framework of the European Commission that allows member states to provide additional assistance to their respective economies due to the pandemic, approves state aid in the form of a share capital increase and shareholder loan. The government decision addresses Croatia Airlines' need for immediate liquidity and capital recovery.
Maritime Affairs, Transport and Infrastructure Minister Oleg Butković said that the coronavirus pandemic had and is still having a devastating effect on the global aviation industry, which is facing the worst crisis in its history. Croatia Airlines is no exception, Butković said, adding that the company recorded a drop in turnover of between 65 to 90% when compared to 2019.
Minister Butković added however, that as the state-owned carrier, Croatia Airlines has a strategic role in Croatia's transport infrastructure, which has proven to be crucial in these times of crisis. He also said that the funds had already been secured in the early budget revision. Deputy Prime Minister and Finance Minister Zdravko Marić said the aid will enable the preservation of the company's economic activity and provide it with the necessary liquidity.