BrazilCroatia Airlines flies in BCG for post-Covid-19 strategy
Star Alliance member Croatia Airlines has flown in strategy consultants from Boston Consulting Group (BCG) to support the carrier with developing its post-Covid-19 strategy.
The appointments comes at a time of hardship for Croatia Airlines, which is struggling amid one of the biggest crisis in modern history for the airline industry. Across Europe, the number of flights has dropped by over 60% due to the travel restrictions imposed by governments, and on top of that, airlines have seen aircraft booking rates of routes still flying nosedive amid a plummet in demand for travel.
This has seen airlines take a financial blow, with Croatia Airlines no different. In 2020, Croatia’s flag carrier (which is headquartered at Zagreb International Airport) saw its net loss jump to HRK 358.2 million, significantly more than the HRK 79.4 million loss it booked the year previous.
In the first quarter of this year, Croatia Airlines ended with a net loss of HRK 96.9 million, lower than the year previous on the back of Covid-19 response measures, but still alarmingly high for a carrier that operates just 13 aircraft.
As the aviation industry prepares for a rebound this summer (travel restrictions are being used in many countries at the time of writing), Croatia Airlines has brought in Boston Consulting Groupto help it with crafting its future strategy. This includes working on plans for how the airline can tap into rapidly unfolding summer opportunities, albeit in an agile manner in light of the continued uncertainty.
The strategy also focuses on a mid-term horizon, geared at preparing Croatia Airlines for the ‘new normal’. According to a statement by the Board, “[BCG] will help us redefine new market opportunities for connecting European destinations with the region of Southeast Europe, maximise future revenue potential and increase aircraft productivity.”
BCG will also help the airline “define opportunities for further rationalisation and improvement of business processes,” the statement said.
Croatia Airlines’ history traces back to 1991, when the company completed its first commercial flight between Zagreb and Split, operated by an MD-82 aircraft. The company is majority-owned by the Croatian government.
