Under the new circumstances, Croatia Airlines is exposed to stronger international competition in light of the fact of the arrival of a significant number of low-budget air carriers that have already introduced or are planning to introduce commercial flights from the EU to Croatia using benefits of the horizontal agreement.
The Croatian company expects that the signing and application of a multiple agreement on the European Common Aviation Area (ECAA) will contribute to a more balanced position of Croatian and European airliners.
The horizontal agreement, which was signed by Bosnia-Herzegovina, Bulgaria, Romania, Macedonia, Albania, the UN Mission in Kosovo, plus Croatia, and by the EU in Strasbourg on 5 May, adjusts all the bilateral air traffic agreements between the said countries and the EU to the relevant EU regulations.