Croatia Airlines achieved a large operating loss and a drop in passenger traffic

first_imgIn the conditions of the crisis and the consequences for the tourist season, the additional importance and contribution of Croatia Airlines to tourism is in connecting Adriatic airports with European destinations in the season when the arrival of foreign airlines was significantly reduced. In the autumn-winter period, and especially due to the current deterioration of the epidemiological situation, the importance of Croatia Airlines will be further emphasized by maintaining Croatia’s connection with major European destinations, as a large number of foreign airlines have already withdrawn from the Croatian market or reduced flights. As a result, operating revenues decreased by 59 percent, with the most pronounced decrease in passenger revenues, which is a direct consequence of the drastic reduction in demand for air transport services.  In the first nine months of 2020, the number of passengers in domestic regular traffic (142.958 passengers transported) decreased by 64 percent, in international regular traffic (384.712 passengers) this decrease was 69 percent, and in extraordinary traffic (5.700 passengers) there was a decrease of 91 how much. A total of 533.381 passengers were transported in the first nine months, ie 1,168.190 fewer passengers than in the same period in 2019 (-69 percent). The increase in net loss by HRK 195,1 million compared to the same period in 2019 is a direct consequence of the decrease in demand for air transport services in the context of the global pandemic, which the company in the period from April to September 2020. directly reduced revenue by 70 percent.  As a result, there was a reduction in flight by 11.709 flights and a drop in the number of transported passengers of 69 percent (-1,168.190 passengers). Due to reduced demand for air transport services in the epidemic crisis, Croatia Airlines recorded a drop in passenger traffic of more than 90 percent in April and May, by 80 percent in June, by 70 percent in July, by 67 percent in August, and by 80 percent in September.center_img Given the deteriorating epidemiological situation and further decline booking in the coming period (autumn and winter) no significant improvements are expected, especially because these are the months of the low season (winter season) when the company makes losses even under normal conditions. An additional problem in maintaining liquidity is the unpredictability of the duration of the crisis caused by the pandemic, and thus the pressure on the company’s cash flows. In the first nine months, Croatia Airlines made an operating loss of HRK 222,4 million, which with a net financing result gives a net loss of HRK 243,5 million.  Photo: CAlast_img read more

UK broadcaster faces court hearing over pension contributions

first_imgThe regulator issued a “financial support direction” (FSD) to ITV in December 2011. FSDs create a legal requirement on a company to contribute to deficit repairs within a pension scheme it has links to.The company referred the decision to the Upper Tribunal court in 2012, but since then the two parties have been involved in a protracted legal battle that delayed the case coming to court.Mike Birch, TPR’s director of case management, said the ruling “brings closer the prospect of greater certainty for members”.“We have fought at every stage to bring our case for an FSD and are pleased the courts have agreed with our position,” Birch said. “This sends a clear message that we will not shy away from pursuing regulatory action to protect workplace pensions.”A spokesman for ITV said the company believed the case to be “wholly unmeritorious”.“ITV has never participated in the Box Clever scheme and has had no control over the growth of its deficit,” the spokesman said. “ITV believes strongly that there will be cases in which it is appropriate for the regulator to use its powers, but equally strongly that Box Clever is not one of them.”He added: “The tribunal previously stated in its judgment that the regulator has not alleged, and does not allege now, that there was anything improper or negligent about ITV’s conduct. Yet ITV is being pursued for unquantified sums in relation to a transaction that took place 17 years ago, before the regulator ever existed, and before the current powers it seeks to evoke were even on the statute book.“ITV has defended the case robustly over the last six years and will continue to do so.”The hearing will start on 29 January 2018 and will be the first time an anti-avoidance case by TPR has been heard in full in the Upper Tribunal, the regulator said. The UK’s Pensions Regulator (TPR) will head to court next year as it attempts to force broadcaster ITV to fund a pension scheme.TPR wants ITV to pay contributions to close a £90m (€99m) deficit in the Box Clever Group Pension Scheme. The scheme is connected to Box Clever, a firm formed in 2000 through a merger involving ITV’s predecessor company Granada. The company went bust in 2003.In a statement published today, TPR said the UK Court of Appeal had rejected an appeal from ITV against a ruling allowing the regulator to bring in new evidence in the case, which has been running for nearly six years.It was the fourth time the UK courts had considered the case and agreed with TPR’s position, the regulator said.last_img read more