Croatia Airlines to cut costs and implement new strategy
Croatia Airlines plans to further cut costs and implement its much-talked-about post-Covid strategy next year, company CEO Jasmin Bajić said. The CEO said, “Traffic will continue to depend on external factors beyond the control of the company, such as restrictions, bans and other measures, which have a direct impact on the ability of people to travel to both nationally and internationally. Accordingly, we will focus on flexible planning of our network. Our objective is to achieve optimal load factors with average tariffs under the existing conditions of reduced capacity. However, there is some optimism based on the latest forecast from the International Monetary Fund which forecasts the recovery of the Croatian economy in 2022 with GDP growth of 5.6%. Therefore, in 2022, we will focus on further rationalization of costs and the implementation of the post-Covid strategy defined by the company â€.
Mr. Bajić noted that the carrier’s post-Covid strategy, developed in cooperation with the Boston Consulting Group (BCG), will form the basis of the airline’s development for years to come. “We continue to take all necessary measures to preserve liquidity and optimize the business, as well as to take strong cost reduction measures. During the year, we worked with the leading international strategy consulting firm BCG to develop a post-Covid strategy to define strategic initiatives, including implementation, with the prior approval of the majority owner – the Government of the Republic of Croatia – take years to enable a sustainable business â€.
The post-Covid strategy is expected to be adopted soon by the Croatian government and foresees the renewal of the fleet, the improvement of efficiency and competitiveness, as well as the optimization of the Croatia Airlines route network throughout the period. ‘year. The Croatian carrier will also further digitize its business by switching to a new Systems Applications and Products (SAP) system, a widely used enterprise resource planning software, as well as studying and analyzing data in more detail, improving management skills at all levels of management, increase productivity, focus on quality, entrepreneurship, cost awareness and innovation. “We will inform the public of all upcoming steps in due course,†the company said.
