CROATIA AIRLINES SIGNS FINANCE AGREEMENT TO PURCHASE PLANES

( Editorial: --> 4949 ) ZAGREB, 16 Jan (Hina) - Croatia Airlines has signed an agreement with a consortium of banks led by Bayerische Landesbank to finance the purchase of aeroplanes. The agreement was signed on Friday in Zagreb by Croatia Airlines Director Ivan Misetic and the consortium's representative Ruediger Fern from Bayerische Landesbank. It was witnessed by Transport Minister Zeljko Luzavac and President of the Croatia Airlines Supervisory Committee, Antun Vrdoljak. The agreement envisages the financing of an update of the Croatian air fleet with the purchase of A319 Airbuses - decided in January 1997 - as well as the construction of hangers and a new Croatia Airlines administration building at Zagreb Airport. The hangers and administration building will cost US$30 million while the aeroplane purchases will cost US$283 million. Construction of its own hanger - expected to commence mid 1998 and finish in the year 2000 - will enable Croatia Airlines to maintain its own fleet and hence save on labour costs. Croatia Airlines would also be able to provide the service of maintaining fleets for other airline companies and thus be able to employ more staff. On Wednesday 21 January in Hamburg, Croatia Airlines will take posession if its first new A319 Airbus which will be called "Zadar". The aeroplane will have 132 seats; 42 in business class and 90 in economy. Delivery of the second A319 is expected in June. (Hina) jn mrb 161416 MET jan 98