ZAGREB, Sept 2 (Hina) - In the business year 2000 the national airline Croatia Airlines realised an income of almost 1.02 billion kuna (about USD 122.9 million), while its losses amounted to 206.7 million kuna (approx. USD
24,904,000). Last year's loss was partly expected because the company had to pay a loan for the purchase of new planes, however, the loss exceeds the expected amount due to differences in the dollar-kuna exchange rate and a significant rise in the prices of kerosene on the world market, the company's general director Ivan Misetic told a regular session of the company's shareholders assembly last Wednesday. The shareholders, with the state as the majority owner with more than 90% of the capital stock, adopted the 2000 financial report. The session also adopted a decision to increase the capital stock by issuing new shares worth 150 million kuna (some USD 18.072 mi
ZAGREB, Sept 2 (Hina) - In the business year 2000 the national
airline Croatia Airlines realised an income of almost 1.02 billion
kuna (about USD 122.9 million), while its losses amounted to 206.7
million kuna (approx. USD 24,904,000). Last year's loss was partly
expected because the company had to pay a loan for the purchase of
new planes, however, the loss exceeds the expected amount due to
differences in the dollar-kuna exchange rate and a significant rise
in the prices of kerosene on the world market, the company's general
director Ivan Misetic told a regular session of the company's
shareholders assembly last Wednesday. The shareholders, with the
state as the majority owner with more than 90% of the capital stock,
adopted the 2000 financial report. The session also adopted a
decision to increase the capital stock by issuing new shares worth
150 million kuna (some USD 18.072 million) of budgetary funds, the
nominal investor being the Republic of Croatia, i.e., the Finance
Ministry.
The government's goal is not to be the majority owner of the airline
but create conditions for its positive business operation by
making
investments, said Transport Minister Alojz Tusek, who chaired the
general assembly.
A government coordinating body for economy will soon consider the
purchase of new planes, with the Finance Ministry conducting the
procedure. In the next two years, some 60 million kuna (USD 7.230
million) of budgetary funds should be set aside for Croatia
Airlines, the company's director Misetic said, stressing the
company was not able to finance the expansion of its fleet on its
own. Croatia Airlines has already signed preliminary contracts
with the aircraft producer Airbus Industrie on the purchase of six
more planes by 2006.