Get ready for take-off – a new aerial showdown is brewing over the Croatian skies.
The Croatian government is preparing to launch a fresh Public Service Obligation (PSO) tender to keep vital domestic flight routes alive – with millions of euros in subsidies up for grabs. The current contracts, dished out in 2021 to Croatia Airlines and Trade Air, expire in March 2026, and the race to replace them is already heating up.
Enter budget kingpins Ryanair, who are circling the tender with interest. With established bases in Zagreb, Dubrovnik and Zadar, the Irish low-cost giant has hinted it might fancy a slice of the domestic action.
Under the PSO scheme, airlines get paid to fly unprofitable but important domestic routes – mainly the kind that connect far-flung corners of the country to the capital. Think Zagreb to Brač, Osijek, and – yes – good old Dubrovnik.
Speaking of which, the Zagreb–Dubrovnik hop remains one of the most talked-about. It’s quick, it’s popular, and profitable – yet it’s still bankrolled by public money. Some say it’s a crucial connection for locals and business travellers. Others reckon it’s a free ride for the national carrier.
Meanwhile, regional airports like Rijeka are fuming over their minimal inclusion in the current route map, saying the scheme’s unfair and stifling their development.
The new PSO tender is expected in late 2025 or early 2026, and EU-based airlines are welcome to throw their hat in the ring. During the last round, the government claimed there was “significant” interest from abroad – though only Croatian carriers ultimately cashed in.
As Croatia Airlines revamps its fleet with shiny new Airbus A220s, it’s also lining up wet-leased turboprops to keep servicing the smaller PSO airports. No word yet on whether Trade Air will stay in the game.