Crisis interrupts Croatia Airlines talks to cancel A320neo order

Croatia Airlines has disclosed that it has been discussing the cancellation of its Airbus A320neo order, the latest twist in a single-aisle situation dating back 12 years. Its order for four of the re-engined jets was placed in September 2015 – four months before the type entered service – with the first pair due for delivery in 2021. But the agreement was a conversion of a previous order for four conventional A319s which had languished on Airbus’s backlog since the deal was originally agreed in October 2008. At the time of the conversion to A320neos, Croatia Airlines attributed the dormancy of the A319 order to its previous management team which had “several times delayed” the deliveries. The carrier had claimed the A320neos would be acquired at about the same price as the original A319s, under a deal which had taken the airline two years to negotiate as the carrier restructured its operations. But the order faces further uncertainty. Croatia Airlines, in its half-year financial statement, says it had already begun negotiating the “termination” of the order in autumn last year – as part of a broader long-term strategy – long before the downturn resulting from the coronavirus crisis. The crisis has interrupted the discussions but the carrier is keen to continue them “as soon as possible”.<br/>