'CROATIA AIRLINES' DIRECTOR ON PURCHASE OF 'AIRBUS' PLANES

ZAGREB, 4 Dec (Hina) - The purchase of new A319 planes from the European consortium 'Airbus' by the Croatian airline company 'Croatia Airlines' will be entirely financed by a foreign bank or several foreign banks with, it is expected, the Croatian government as a guarantor. Extensive negotiations with both the producer and interested banks are expected to start. The planes cost some US $ 40 million and in the next eight years 'Croatia Airlines' is expected to purchase 14 to 16 A319 planes for medium-length distances. The whole investment, along with reserve parts and personnel training, is estimated at $ 1,5 billion, 'Croatia Airlines' general director Matija Katicic told a press conference on Wednesday. #L# Recalling that negotiations with American and European producers (Boeing, Airbus) on the purchase of planes had lasted a year, Katicic said that in the end 'Croatia Airlines' had decided to buy 'Airbus' planes, although both offers had been equal. The decision to buy 'Airbus' planes had been made because of the predominantly Euro-Mediterranean traffic of 'Croatia Airlines' planes and the possibility for daily and unlimited flights to countries which are members of the Airbus consortium - Germany, France and Great Britain, Katicic said. First 'Airbus' planes are to arrive in Croatia in 1998. (hina) rm jn 041553 MET dec 96