The Supervisory Board of Croatia Airlines has adopted a post-Covid strategy developed in cooperation with Boston Consulting Group (BCG). The strategy, which will be implemented over a three-year period, says Croatian Airlines needs to improve its efficiency and competitiveness as it faces key operational and structural challenges, including fleet renewal and optimization of its route network throughout the year.
"Given the visible trends in the highly competitive Croatian air market, the prices of fuel and CO2 emissions, as well as the targets set by EU" green "policies, the defined strategic initiatives have no alternative and their implementation will use opportunities which will be available in the next two years, once the air traffic recovers ”.
The Croatian carrier will now submit the post-Covid strategy to the Croatian Ministry of Transport and Infrastructure for approval.
"We will inform the public about all future steps in a timely manner", the company noted. Croatia Airlines recorded a net loss of 19.6 million euros in the first half of the year and warned that the business could continue to be affected by the spread of new variants of Covid-19.
The Croatian flag operator did not go into detail on the content of its post-Covid strategy, but said it would further digitize its business by switching to a new SAP (Application Systems and Products) system, a business resource planning software used on a large scale that will improve management skills at all levels of management, increase productivity and focus on quality, entrepreneurship, cost awareness and innovation.
However, the airline's financial performance improved from a loss of 23 million euros last year, but the company has not yet reached its half-year result in 2019, which amounted to a loss of only 12.1 million euros.