Croatia Airlines in line for state support to stabilise carrier

In the aftermath of the collapse of Adria Airways, the neighbouring Croatian govt is seeking to avert a similar risk to Croatia Airlines after setting out conditions for a capital injection. Prime minister Andrej Plenkovic has set out the conditions in relation to an initial Kn100m (US$14.8m), which it describes as the "first part" of a Kn250m advance necessary to stabilise operations at the airline. Croatia Airlines had disclosed Sept 19 that the govt had approved a decision on creating prerequisites for a Kn250m recapitalisation. Plenkovic recently cautioned that the Croatian carrier needed to be "financially ready" for the next stage and that the govt had embarked on a strategic partnership process for the carrier. <br/>