Croatian govt to recapitalise flag carrier

Croatia Airlines posted a consolidated loss of 74.6 million kuna in 2011.

The government, which is a 55% shareholder in the airline, further plans to invest 150 million kuna in the company under a Market Economy Investor Principle, the ministry said in a statement after the unveiling of the restructuring plan.

The turnaround strategy also calls for 64 million kuna in annual cost-cutting and for a 10% cut in headcount over the next two years but for no cancellation of any existing routes.

(1 euro = 7.5478 Croatian kuna)