EC approves state aid for Croatia Airlines

The European Commission has approved state aid to Croatia Airlines in the amount of HRK 88.5 million (€11.7 million), awarded as compensation for losses incurred by the company due to the COVID-19 pandemic.

"The European Commission has found a Croatian grant of €11.7 million to the state-owned airline Croatia Airlines to be in line with EU State aid rules.". - the EC said.

The Croatian government in mid-November granted Croatia Airlines state aid in the amount of HRK 88.5 million as compensation for losses the company incurred in the period from March 11 to June 30. The money was secured through a budget revision.

The EC says that the measure aims at compensating the airline for the losses directly caused by the coronavirus outbreak and the travel restrictions introduced by Croatia and other destination countries to limit the spread of the coronavirus.

An independent external audit firm will verify that the aid does not exceed the amount of damage suffered during the period between 19 March 2020 and 30 June 2020. Following the audit, any public support received by Croatia Airlines in excess of the actual damage suffered will have to be returned to Croatia, the EC said.

News from media