Croatia Airlines gains approval for restructuring plan

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Croatia Airlines' restructuring plan has been approved by the national competition agency.

The programme - under which the flag carrier is to reduce its fleet and routes over the next two years - was ruled by the AZTN agency to accord with Croatian competition law and "enable the company to properly meet all of its financial liabilities with its own resources", Croatia Airlines says. The carrier was obliged to draw up a restructuring plan that adhered to Croat and European state aid rules after receiving a HRK862 million ($150 million) recapitalisation from the government at the end of 2012.

Croatia Airlines would not divulge details of its restructuring other than to say it would decrease its fleet size and the number of flights it operates.

While the airline confirms it is in talks with Airbus regarding delivery of four on-order A319 narrowbodies, it says it cannot "speculate on the outcome of the negotiations".

The order was placed in 2008, but delivery of the first aircraft has repeatedly been postponed. Flightglobal's Ascend Online database shows it is now due to arrive in 2015.