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After recording serious losses in 2012, Croatia Airlines will have to make big cuts.
The record deficit of 370 million kuna (50 million euro) in 2012 is the result of a 70 million kuna (9 million euro) operational loss and the revaluation of its fleet worth around 300 million kuna (40 million euro).
Croatia Airlines also finished 2011 in the red, that time to the tune of around 10 million euro.
The debt will force the company to cut its fleet, which currently consists of 13 aircraft, seven Airbuses and six Dash aircraft.
The national carrier will also have to cut routes and staff numbers, the Croatian daily, Vecernji list, predicted.
Insiders say that they will have to immediately get rid of one Airbus, cut the number of routes by about 10 per cent, and make staff reductions.
Sources in the industry say such measures could spell the end for Croatia Airlines in such a competitive market.
Vecernji list reports that Croatia Airlines will cut its London Gatwick connection this year, and possibly its connection to Pristina.
Next year its London Heathrow connection could also be in jeopardy, the newspaper warned.
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