Croatia Airlines will soon mark one year since the adoption of the post-covid strategy, created in cooperation with the Boston Consulting Group (BCG), and is convinced that the measures, which will be implemented for another two years, will improve the company’s finances and make it more competitive. The strategy was developed during the first half of 2021, and was adopted by the Supervisory Board of the airline on August 31 last year. “The strategy paves the way for further discussions with the owner of Croatia Airlines, the Republic of Croatia, and other stakeholders in order to ensure the long-term success of the Croatian national carrier and member of the Star Alliance,” the company said. It is added: “Implementation of the defined strategic initiative will enable sustainable business and the future.” It also represents the new development cycle of Croatia Airlines. In addition to increasing efficiency and competitiveness, the company faces key operational and structural challenges that include fleet renewal and year-round flight network optimization”.
Although the airline has yet to make a key decision on fleet renewal, it has implemented a number of changes over the past year to improve operations. The carrier launched several new routes from the Croatian coast during the peak summer months and implemented new customer relationship management (CRM) technology to manage and analyze customer interactions and data. Furthermore, it is currently testing the SAP Cloud for Customer solution to help manage day-to-day sales and service interactions, both with general and corporate clients. “Implementation of this system will enable more efficient use of human resources, but also ensure the mobility of sales representatives who will be able to respond to clients’ needs in real time, since the system’s functionalities will be available through a mobile application. “, they said from Croatia Airlines.
Croatia Airlines also launched a new-look website with a number of new features aimed at increasing sales and related services. It is currently in the third and final phase of developing new applications for its websites. “The company is rigorously working on the implementation of new services. We have already enabled seat selection for a fee. We are working on a ‘Thinking Time’ option which will allow customers who purchase their tickets online to store their booking for a limited time for an additional fee so they can think about whether to go ahead and book”.
Despite a series of new initiatives, the airline nevertheless recorded a significant loss of over 21 million euros during the first half of the year. “By implementing the post-Covid strategy and continuing the privatization process, once the conditions are met, the risks related to the company’s ability to continue operating in the future will be reduced. However, it should be noted that given the unpredictability of the pandemic, its scope and duration, as well as the impact of restrictions related to the virus on business, we do not rule out the possibility of the need for additional financial support from the owners”, Croatia Airlines concluded.