korice kom-2005-eng - croatiaairlines.com · 11 croatia airlines annual repor t 2005 in 2005, a...

PUBLISHER Croatia Airlines d.d., Zagreb, Savska cesta 41

www.croatiaairlines.hr

EXECUTIVE EDITOR Ksenija Ælof

EDITOR ASSISTANTS Ana ∆ulumoviÊ, Davor JanuπiÊ

DESIGN Ivana IvankoviÊ PrliÊ, Nenad VujoπeviÊ

PHOTOGRAPHY Damir FabijaniÊ

PROOF READER Mirjana Miholek

TRANSLATION Lancon d.o.o.

PHOTOLITOGRAFY AND PRINT ZRINSKI d.d., »akovec

USA

Networld

INC./CROATIA AMERICA (GSA)

300 Lanidex Plaza,

PARSIPPANY NJ 07054

Tel. (+1-973) 884 3401

Fax (+1-973) 428 3929

Toll free 888-462-7628

AUSTRALIA

SKY AIR SERVICES (GSA)

7/24 Albert Road,

STH. MELBOURNE

Vic. 3205

Tel. (+61-3) 9699-9355

Fax (+61-3) 9699-9388

NEW ZEALAND

CROATIA TIMES TRAVEL Ltd. (GSA)

131 Lincoln Road,

HENDERSON, AUCKLAND

Tel. (+64-9) 838 7700

Fax (+64-9) 838 7722

JAPAN

DARUMA CORPORATION (GSA)

106 Liberty Hill 3,

3-30-5 YAKUMO,

MEGURO-KU TOKYO 152

Tel. (+81-3) 5701-5651

Fax (+81-3) 5701-5652

(GSA = Glavni prodajni zastupnik)

Scheduled

flights

destinations

Domestic

BraË

Dubrovnik

Osijek

Pula

Rijeka

Split

Zadar

Zagreb

International

Amsterdam

Vienna

Brussels

Düsseldorf

Frankfurt

Istanbul

Lisbon

London

Lyon

Manchester

Mostar

Munich

Paris

Prague

Rome

Sarajevo

Skopje

Tel Aviv

Zurich

SALES AGENTS

EUROPE

ISTANBUL

INTER RUT (GSA),

80280 Zincirlikuyu,

Istanbul

Buyukdere Caddesi No: 122

Ozbezen is Mrk. C Bik K. 10/3

Tel. (+90-212) 212-83-64

Fax (+90-212) 356-28-37

PRAGUE

Blue Sky Travel s. r. o. (GSA)

Ruæová ul. 15

11000 Praha 1

Tel. (+420-2) 2222-2235

Fax (+420-2) 2222-0237

SOUTH AFRICA

TOP HOLIDAYS-BROOKLYN OFFICE

Block C Momentum Office Park

Cnr. Brooklyn Circle & Fehrsen Str.,

Brooklyn

Pretoria 0181

Tel. (+27-12) 346-6869

Fax (+27-12) 346-8292

MIDLE EAST/ISRAEL

BIAF AVIATION SERVICES LTD (GSA)

1 Ben Yehuda St. Migdalor

blgd.5th Floor, Tel Aviv 63802

Tel. (+972 3) 620 0213

Fax (+972 3) 620 8571

1 C R O AT I A A I R L I N E S A N N U A L R E P O R T 2 0 0 5

2 0 0 5


5 Report of the Supervisory Board

8 Chronicle of Major Events

12 Croatia Airlines Fact Sheet

16 Business Analysis 2005

22 Sustainable Development and

Outlook for the 2006 Business Year

30 Financial Results

44 Sales Agents and Offices


Report of the Supervisory Board

On the basis of Articles 300c, 300d and 263 of the Company Law and Article 24 of theStatute, the Supervisory Board submits to the Annual General Meeting of Croatia Airlines d.d.the following

Report of the Supervisory Board on Supervision of the Conduct of Business Operationsof the Company in 2005 and on the examination of the Financial Reports

1. In accordance with its obligations, the Supervisory Board has conducted the supervision ofbusiness operations of the company Croatia Airlines d.d. (hereinafter: the Company) anddetermined that the Company is operating in accordance with the Law, the Articles ofAssociation, other acts of the Company and decisions of the General Assembly.

2. During 2005, the Supervisory Board had twelve (12) members, since Mr. Josip Horvat waselected a member of the Supervisory Board replacing the deceased Mr. Drago Durajlija, onthe basis of the AGM’s decision of 6 September 2005.

The employees of the Company did not nominate their representative to the SupervisoryBoard in 2005, and the Supervisory Board has no special committees.

In 2005, the Supervisory Board held three sessions, and received the regular reports of theManagement Board on all important business events and the course of affairs, the profitabilityof operations, revenues and expenditures, and on the state of the Company in general. TheManagement Board regularly submitted quarterly, semi-annual and annual written reports onbusiness activities to the Supervisory Board, which had no objections to those reports andadopted them unanimously.

3. The Supervisory Board, in accordance with the legal timeframe under Article 300c of theCompany Law, has examined the annual financial reports with the opinion of the auditor,submitted by the Management of the Company. The Supervisory Board has determined thatthe reports were compiled in accordance with the data in the books of accounts, and thatthey show a true and objective financial position and business results of the Company for theyear ending December 31, 2005. The Supervisory Board is in agreement with the annualfinancial report for 2005 and with the opinion of the auditor Deloitte & Touche. Thus, on thebasis of Article 300d of the Company Law, the Management Board and the SupervisoryBoard adopted the annual financial reports.

4. The Supervisory Board has examined the report of the Management Board on the losses ofthe company and the proposal to cover the losses of the company incurred in 2005 andamounting to 22,775,816.96 kuna, and it agrees with the proposal of the Management tocover the losses of the company from future profit.

5. The Supervisory Board has also examined the Annual Report of the Management Board onbusiness activities in 2005, and it has determined that this Report accurately and objectivelyshows the current business position of the Company. In accordance with that finding, theSupervisory Board accepted the Report of the Management Board on Business Activities in2005.

6. On the basis of the foregoing, the Supervisory Board submits this report to the AGM, withthe proposal that the AGM reaches other decisions within its jurisdiction in accordance withthe proposals of the Management Board and the Supervisory Board.

Zagreb, 12 July 2006

Miomir Æuæul, Phd President of the Supervisory Board


Members of the Supervisory Board

Miomir Æuæul, Phd Petar TurkoviÊPresident member

Miroslav KovaËiÊ Ratimir AndrijaniÊmember member

Bianca MatkoviÊ Marija »aËiÊmember member

Niko RaiÊ Boæo Jusupmember member

Zdenko MiËiÊ Boπko MatkoviÊmember member

Ante NosiÊ Josip Horvatmember member

President ot the CompanyShareholder’s Assembly

Boæidar Kalmeta

Management Board

Ivan MiπetiÊPresident and C.E.O.

Vice Presidents

SreÊko ©imunoviÊ Svemir RadmiloExecutive Vice President Executive Vice Presidentmarketing and network management sales

Miljenko RadiÊ Vanja RollerExecutive Vice President Executive Vice Presidentoperations maintenance and engineering

Damir ©prem Josip BiliÊExecutive Vice President Executive Vice Presidentfinance, accouting, controling, HR management,revenue calculation and investment legal affairs, IT and infrastructure


In 2005, a record number of transported passengers was achieved. A total of 1,555,033passengers were transported, which is 2 percent more than in 2004. A total of 1,360,600passengers were transported through regular flights, which is 87.5 percent of the total numberof passengers. In international regular flights, almost 897,000 passengers were transported,4 percent more than in 2004.

May 4 ∑ An Airbus A320 was christened and blessed at Split Airport. This aircraft was leasedin April from the American company IFLC for a three-year period, in order to additionallyincrease the fleet’s available seating capacity. The leased A320 was named after the city of©ibenik, and painted in Star Alliance colours.

May ∑ Croatia Airlines won the international ReBrandTM award for aircraft redesign, in aselection by the most notable world experts in business design. In the first annual ReBrandTMaward ceremony, which took place in Providence, US, the redesign of our aircraft received anaward in the category notable.

June 1 ∑ Croatia Airlines introduced the Ticket Service Charge system. This system ofcalculating agent charge was introduced instead of the agent commission fee, which waspreviously the usual method of paying fees for representatives (agents).

June ∑ A new service was introduced on company Internet pages, allowing passengers tomake on-line reservations and payments for hotel accommodation, in addition to on-linepurchasing of plane tickets. The service provides a selection of 20,000 hotels in 3,300 citiesaround the world.

August 17 ∑ One million transported passengers were recorded in 2005, three days earlierthan in 2004.

August ∑ Our aircraft transported 193,425 passengers, which is a record number of passengersin a single month in the company’s history. It was 432 passengers more than in the previousrecord month, July 2005, when 192,993 passengers were recorded.

October 27 ∑ The Company’s new Internet (web) pages were introduced. The key novelty isthe flexibility in selecting the desired route, since the passenger has the ability to select andcreate travel conditions in accordance with his/her personal needs and possibilities. This flexibilityis supported by the FlexPricer service, grouping travel tariffs and classes in six price grades.An additional novelty is the comparative overview of all available prices (more than 6800)offered by the company.

December ∑ For the second time, Croatia Airlines passed the most demanding IOSAindependent flight safety check (IATA Operational Safety Audit), and renewed its IOSA certificate.This is the IOSA program, used by the International Air Transport Association (IATA), of whichCroatia Airlines has been a member since 1992, to create a single global standard for evaluatingthe flight safety of airline companies that are members of the Association.


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Croatia Airlines, was registered as joint stock company on 7 August 1989. The Companywas entered into the Register of Companies with Commercial Court in Zagreb under thename Zagreb Airlines d.d. as the first joint stock company registered in Croatia. The Companyhas been operating under its present name since 23 July 1990.Croatia Airlines d.d. harmonized its acts in accordance with the Companies Act on 25 January1996 and was entered into the court register under the reference Tt-95/9316-2 and companynumber (MBS) 080037012.

Croatia Airlines’ head office is in Savska cesta 41, ZagrepËanka business tower, 10000 Zagreb.

Croatia Airlines’ Shareholders

Kapital (kn) %

Adriatic Croatia International Club d.d. 9700 0,001

HTP Matija Gubec d.d. 9200 0,001

TuristiËko rekreacijski centar MihanoviÊ d.d. 9200 0,001

Astra International d.d. 368.200 0,037

Coning Inæenjering d.d. 521.400 0,053

Enikon d.d. 735.600 0,074

Hrvatska poπta d.d. 275.000 0,028

PBZ d.d. / KAPITALNI FOND d.d. Zatvoreni investicijski fond 14,413.600 1,456

State Agency for deposit insurance and bank rehabilitation 21,315.200 2,153

Jadranski naftovod d.d. 2,200.000 0,222

Varteks-Denim proizvodi d.o.o. 5900 0,001

Lutrija Hrvatske d.o.o. 400.000 0,040

Tankerkomerc d.d. 209.000 0,021

Nauta Lamjana d.d. 19.400 0,002

Turisthotel d.d. 209.000 0,021

Individuals 8,537.000 0,862

Croatia Lloyd d.d. 1,027.000 0,104

Tankerska plovidba d.d. 209.000 0,021

Vigo d.d. in bankruptcy 5200 0,001

Osijek Airport 19.400 0,002

Zagreb Airport 1,302.500 0,132

Republic of Croatia 938,175.000 94,767

Total 989,975.500 100,000

Companies Ownedby Croatia Airlines

Amadeus Croatia d.d., Zagreb, 95 % ownership stake

Hrvatska poπtanska banka d.d., Zagreb, 0,29 % ownership stake

Obzor putovanja d.o.o., Zagreb, 100 % ownership stake

Pleso prijevoz d.o.o., 50% ownership stake


5


TRAFFIC RESULTS 1991 - 2005

Croatia Airlines Fleet Capacity 1991 - 2005 (>9t MTOW)

Description 2005 1991 index 05/91 Growth rate 05/91

Number of aircraft 11,5 2 575 13.3

Passenger seats available 1,302 364 358 9.5

Aircraft gross carrying capacity (t) 270 71 380 10.0

Net carrying capacity of aircraft (t) 141 40 353 9.4

Available seat kilometres (mln) 2,030 215 944 17.4

Available tonne kilometres (mln) 222 22 1,009 18.0

Croatia Airlines Traffic Results1993 - 2005

Growth rate

Description Unit 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 05/93

Kilometres flown (km) 000 15.936 14.522 14.023 13.654 12.640 11.600 10.719 11.377 10.804 10.333 8. 698 8.286 5.949 8.6

Departures 24.364 22.818 22.287 21.870 20.281 18.745 17.273 18.476 18.704 16.907 14.106 13.668 10.147 7.6

Block hours BH 33.523 30.421 29.649 29.150 26.971 25.035 24.294 26.095 26.377 24.425 20.592 19.660 14.569 7.2

Passengers carried 000 1.555 1.531 1.468 1.322 1.242 1.063 921 919 866 823 679 661 473 10.4

Freight and mail carried t 4.544 4.263 4.653 4.930 5 188 5.010 4.025 4.185 4.216 4.745 4.603 4.431 3.811 1.5

Passenger km flown mln 1.199 1.159 1.083 983 922 763 639 622 546 563 444 444 297 12.3

Available seat km mln 2.030 1.856 1.784 1.740 1.661 1.447 1.249 1.247 1.069 971 874 841 622 10.4

Passenger LoadFactor(PLF) % 59.1 62.5 60.7 56.5 55.5 52.7 51.2 49.9 51.1 57.9 50.8 52.8 47.8 1.8

Tonne km flown mln 111 107 101 92 87 72 60 59 52 55 44 44 29 11.8

Available tonne km mln 222 203 195 191 180 158 137 138 123 113 103 101 75 9.5

Weight loadFactor (WLF) % 49.9 52.8 51.6 48.2 48.0 45.5 44.0 42.5 42.5 48.9 42.8 43.7 39.1 2.1

Aircraft Utilisation

1991 2,260 block-hours per aircraft2005 2,943 block-hours per aircraft

Labour Productivity

1991 58,825 tonne kilometres per employee2005 106,969 tonne kilometres per employee

Punctuality of Departures

1991 79.0 percent of departures within 15 minutes of the scheduled departure time(2548 flights)2005 79.8 percent of departures within 15 minutes of the scheduled departure time(22.033 flights)

Summary

In the period 1991-2005, a total of 13.9 million passengers and 60,000 tonnes of freight andmail were transported. At the same time, positive movements were registered in the aircraftand passenger cabin capacity utilization and a record labour productivity level and aircraftutilization level were achieved.


Unknown reasons (incorrect data, no report) 0.4%

Technical reasons 6.9%

Weather conditions 4.8%

Airport/Air traffic control 20.7%

Reactionary 59.5%

Operational reasons 4.4%

Other known reasons 0.8%

TRAFFIC RESULTS 2005

Fleet Capacity

The average number of aircraft during 2005 was 11.5, which is 7 percent more than in theyear 2004. The effect of capacity available, measured by available seat-kilometres, was 9percent higher.

Passengers Carried

Share Compared with ±2004Total 1,555.033 +2 percentScheduled flights 1,360,609 87 percent +2 percent

Chartered flights 194,424 13 percent ±0 percent

Domestic flights 464,922 30 percent -2 percent

International flights 1,090,111 70 percent +2 percent

Freight and Mail Carried

4,544 tons +7 percent

Aircraft Utilization

Airbus A320 8.3 block hours

Airbus A319 8.2 block hours

ATR 42 7.3 block hours

Total 8.0 block hours

Punctuality of Departures and Arrivals

within 15 minutes of scheduled time 79.8 % departures 78.5 % of arrivals

on time (within 3 minutes of scheduled time) 58.8 % departures 53.6 % of arrivals

Reasons for Delayed Departures


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Passengers Carried per Monthin 2003, 2004 and 2005

Passenger Load Factor(PLF) in 2003, 2004 and 2005

Freight and Mail Carried by Monthin 2003, 2004 and 2005


1991 - 2005

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

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1991 1992 1993 1994 1995 1996 1997 1998 1999 20012000 20032002 2004 2005

Sales Dpt 20.1%

Legal, Administrative,Personnel and IT Dpt 4.2%

Technical Dpt 19.1%

Flight Dpt 36.3%

President’s Office 3.3%

Finance, Accountingand Investment Dpt 8.6%

Marketing and NetworkManagement Dpt 8.4%

Punctuality of Departures in theYears 1991 - 2005 (0-15 min.)

EMPLOYEES

Number of Employees byIATA Classification

Year 2005 2004 2003 2002 2001

Pilots and copilots 117 127 109 116 116

Cabin crew 173 175 168 163 143

Tech. and maintenance 198 186 195 210 187

Sales and marketing 295 310 271 264 238

Airport services 89 102 102 99 109

Other personnel 165 180 200 180 184

Total 1037 1080 1045 1051 977

Number of Employees byDepartment on 31 December 2005


6


Sustainable Developmentin Croatia Airlines

Following the partial implementation of sustainable development practices, Croatia Airlineshave undertaken the establishment of a formal sustainable development system within thecompany. The purpose is to implement it in the company’s overall business operations, and toincrease competitiveness and harmonization with the fundamental values and standards ofthe European Union. The company has been prompted to take this step by the processes ofglobalization and of Croatia’s accession to the European Union, together with a developmentof the common European air transportation area and Croatia Airlines’ membership of theAssociation of European Airlines, the International Air Transport Association and regionalmembership of Star Alliance.

The European Union has made a firm commitment to sustainable development as the keyprinciple of its policies and actions. These are based on balanced economic growth and pricestability, on the most competitive social market economy with the aim of total employment, ona high level of education and social progress, and on high standards of protection andimprovement of the quality of the environment.

The power, significance and leading role that the business sector has in today’s society causesparticular emphasis to be given, in the priority areas of the Lisbon Agenda, to the promotion ofthe social responsibility of enterprises, in addition to strengthening the internal market, researchand development, education, innovations and entrepreneurship, environmental protection,sustainable development, employment and social cohesion.

The social responsibility of companies is an essential concept to which these have voluntarycommitted themselves in order to contribute to the creation of a better society and cleanerenvironment, involving in the process employees, owners, users, the general public, localcommunities, suppliers, partners and other interested parties (stakeholders) in the process.

For issues of environmental protection common guidelines determined by legislation arerecommended, but for those of social responsibility, cultural differences require the applicationof common standards to be recommended in their implementation. It is expected that thecandidate countries should accept and apply the recommended standards from the very startof the adjustment process, as they represent harmonization with the fundamental values ofthe EU, with which the candidate countries need to harmonize even before they formally jointhe Union.

Croatia Airlines has invested in initial training in sustainable development and corporate socialresponsibility as well as the development of the partnership of all three sectors of society - thepublic, economic and civil sectors. It has undertaken the creation of basic program documents,and has established a specific post dedicated to instituting and implementing sustainabledevelopment, in order to bring itself into line with the processes of accession to the EuropeanUnion and of globalization, in a timely manner and in accordance with the specifics of theairline sector and air transport, as well as the specifics of the company and Croatia.

By the Framework for the Introduction of the Sustainable Development into Croatia Airlines,the company has defined the necessity for urgent introduction of a integrated sustainabledevelopment system with a responsible approach to the environment, the company’s socialresponsibility and the sustainability economics.

In accordance with the Framework Program for the Introduction of the SustainableDevelopment in Croatia Airlines, the following actions were undertaken in 2005:

- drawing up the initial report on a responsible approach to the environment in Croatia Airlines

- encouraging the formalization and systematic establishment of the recognized existingpractices of responsible approach to the environment, and initiating the practices defined aspriority


- initial training and drawing up of the Framework Program of Company Social Responsibility

- inclusion of the company in the activities of socially responsible operations, in line with therecommendations regarding the processes of globalization and accession to the EU

- initiating an integrated triple bottom line reporting on sustainable development and givinginformation on sustainable development within the company and beyond it.

Initial Report on Environmental Protection Management in Croatia Airlines

Air traffic significantly contributes to the sustainable development of global society by connectingpeople, countries and different cultures through its unique global route network. At the sametime, however, it uses non-renewable energy resources, contributes to global climate changethrough emission of greenhouse gases, and generates noise problems. The airline industry,aware of its role, works continuously to improve its technology, in order to reduce the negativeeffects on the environment at the very source. It also applies procedures in its use which havean additional alleviating effect. Thus, it also strengthens the company’s capacity to meeteconomic and social needs and reinforces its sustainability.

The Initial Report on Environmental Protection Management in Croatia Airlines, as the initialanalysis of the main impacts of Croatia Airlines’ activities on the environment, as well as theexisting relevant company practices and performance, has recognized the following impactsmade by the company on the environment as significant:

- the effect on global climate change, particularly through emission of carbon dioxide resultingfrom flight fuel consumption, and to a lesser extent from technical operations

- impact of noise resulting from flights and technical operations

- impact on the local environment’s air quality, also caused by flights and technical operations

- impact on the consumption of non-renewable energy resources (electric power, water, gas,fuel for the ground transport fleet), use of land and business premises

- generation of waste related to provision of services to passengers on aircraft, of safe andhazardous waste from technical aircraft maintenance operations, and of office operationswaste.

The company carries out a part of the practice related to environmental protection - it operatesthe most ecologically advanced aircraft, pilots apply flight procedures which reduce fuelconsumption, gas emission and noise wherever possible, a computer program for monitoringaircraft noise has been obtained, hazardous waste management is documented, safe wasteremoval is organized and the company is harmonized with the relevant international and localrules and regulations on a consistent basis.

As priorities in the implementation of the system of responsible approach to the environment,the following have been defined:

- setting up a documented system of managing CO2 emissions and fuel for these purposes

- involvement in local and broader actions related to the impact on global climate change

- setting up a documented management system for all types of waste within the company

- documenting the noise management system

- developing a local environment air quality management system, etc.

In 2005, activities to take stock of the current status and create conditions for establishing theexisting company records in a sustainable way and for their documented management wereundertaken in the following areas:

- non-hazardous waste (municipal waste, packaging, office waste)


- use of non-renewable energy resources, use of land and business premises, and the followingwas initiated:

- setting up the CO2 emission management system and starting activities to monitor the fuelconsumption efficiency in a way appropriate for that purpose.

The Framework Program of Company Social Responsibility, on the basis of takingstock of the existing processes in the development of Croatia, as well as corporate socialresponsibility practices and participation in tri-sector partnerships of the leading air companies,has identified the main areas of Croatia Airlines’ corporate social responsibility, together withthe areas where the company can best develop partnerships with the public and civil sectors,in support of the sustainable development of Croatia and the wider community.

As in other leading air companies, the following main areas of corporate social responsibilitywere recognized at Croatia Airlines:

- care for the employees beyond legal provisions

- open and transparent management

- responsible approach to the customers

- responsible approach to the environment

- organized programs of support to local communities in dealing with specific social andenvironmental issues, as well as participation in humanitarian actions in the wider community.

The existing situation in Croatia is undergoing rapid development and transition, as well asharmonization with the European Union values, and is rich in potential fields for the promotionof sustainable development through partnership of the public, economic and civil sectors.Within this context, and in line with the air industry’s terms of reference, Croatia Airlines hasdefined the main areas of potential cooperation as:

- protection of the environment and of endangered species

- sustainable development of tourism and transport, as well as the sustainable developmentof Croatia

- protection of vulnerable segments of society

- consumer protection, and

- development of corporate social responsibility within Croatia.

In 2005, the company was involved in the activities of the program for introducing socialresponsibility into the economic sector in Croatia, initiated by the United Nations DevelopmentAgency in Croatia and the Croatian Government. The initial training on corporate socialresponsibility was carried out at the International Labor Organization and the companyparticipated in the making of the first manual for introducing corporate social responsibilityinto the Croatian economy: Winning with Integrity.

In 2005, the first initial report on sustainable development in Croatia Airlines was published aspart of the company’s Annual Report; the sustainable development section on the company’sweb site was opened, and activities were started to adjust the recording of the existing practicesand initiate new practices in a sustainable way, which are aimed at creating bases for triplebottom line reporting on sustainable development.

The following sustainable development activities have been planned for 2006:

- further development of the company’s sustainable development documents

- activities related to a responsible approach to the environment (activities in setting up asystem for monitoring CO2 emission and fuel consumption efficiency, integrated wastemanagement and energy use)


- activities of socially responsible operations within the company (working to expand thecompany’s codes of governance and management) and outside it, within the narrower andbroader community, in promoting corporate social responsibility

- preparing foundations and databases for triple bottom line reporting on business operationsfrom the point of view of sustainable development, in line with the Global Reporting Initiativemethodology (economic, social and environmental).

Outlook for the2006 Business Year

In 2005, the world aviation industry was still in a crisis which was primarily, but not exclusively,caused by the high price of fuel, whose costs make up one fourth of the world air companies’total operative costs. In order to mitigate the effects of the rise in fuel price, air companiesaround the world generally strive to reduce costs in different ways and to increase efficiencythrough economizing fuel consumption, introducing e-ticketing and reducing costs in all areasof business operations with rationalizations and process modifications. All Croatia Airlines’efforts in 2005 were consistent with the global trends, and this is planned to continue in 2006.Problems in business operations are also intensified by a constant rise in the prices of servicesprovided by airports, some of which still have monopolist positions on the market and investlittle effort in improving efficiency; at the same time state institutions do not undertake necessarymeasures to protect the market where air companies pay the larger part of the bill, faced withever stronger competition and increasing pressure to reduce rates.

In addition to the above trends, which are not different for Croatia Airlines on the domesticmarket, 2005 was marked by a notable increase of competition throughout the year. Alsosignificant was the effect of the increased competition of land transport in domestic traffic,due to new roads and modernized railways within the country.

Despite the world aviation industry’s exposure to crisis and the increase of competition on themarket, in 2005 Croatia Airlines carried 2% more passengers than in the previous year. Due tothe significant impact of fuel price rises on the increase of costs, the operating profit achievedwas less than expected. On the other hand, while eventual loss from operations was incurred,it was less than could have been expected if the fuel costs increase had not been largelysuccessfully compensated for by implementing a savings measures program, which was ineffect throughout the year.

We expect the continuation of the global crisis in the world aviation industry and a notablestrengthening of competition, reflected in the arrival of new low-cost and other internationalcarriers in the Croatian market, as well as the introduction of additional direct flights and anincrease of flight frequency by the existing air carriers: Despite this, in the business year of2006 and in the current market conditions Croatia Airlines plans to have an active effect on thelevel of turnover and earnings, and to achieve operating and final net profit from businessoperations, in addition to planning a minimum necessary increase of costs which will helpachieve the goals set for this year.

The guidelines of the business operation plan aim to keep the existing destinations and marketshares, in addition to meeting the demand for charter flights on the Austrian, German, British,Irish, Israeli, Italian, Syrian, Tunisian and Czech markets.

Throughout the year, further rationalization of all business operations areas is planned, whichin the plans for 2006 involves reducing unit cost prices for a number of variable costs. Amongmajor business activities, a consideration of the available modalities for rescheduling or re-engineering long-term credit liabilities is planned, with the aim of supporting long-termdevelopment activities.

The 2006 flight schedule plans for a total annual flight time of 33,059 block-hours and about1,603,504 passengers in scheduled and charter traffic, and at the same time an increase incargo transport of about 4,640 t is expected.


5


REPORT OF THE BOARD OF DIRECTORS

Responsibility for Financial Statements

Pursuant to the Croatian Accounting Law, the Management Board is responsible for ensuringthat financial statements are prepared for each financial year in accordance with InternationalFinancial Reporting Standards (”IFRS”) as published by the International Accounting StandardsBoard which give a true and fair view of the state of affairs and results of Croatia Airlines d.d.(the ”Company”) and Croatia Airlines Group. (the ”Group”) for that period.

After making enquiries, the Management Board has a reasonable expectation that the Companyand the Group have adequate resources to continue in operational existence for the foreseeablefuture. For this reason, the Management Board continues to adopt the going concern basis inpreparing the financial statements.

In preparing those financial statements, the responsibilities of the Management Board includeensuring that:

■ suitable accounting policies are selected and then applied consistently;

■ judgements and estimates are reasonable and prudent;

■ applicable accounting standards are followed, subject to any material departures disclosedand explained in the financial statements; and

■ the financial statements are prepared on the going concern basis.

The Management Board is responsible for keeping proper accounting records, which disclosewith reasonable accuracy at any time the financial position of the company, and must alsoensure that the financial statements comply with the Croatian Accounting Law. The ManagementBoard is also responsible for safeguarding the assets of the Company and the Group andhence for taking reasonable steps for the prevention and detection of fraud and otherirregularities.

Signed on behalf of the Management Board:

Ivan MiπetiÊ

President & C.E.O.

Croatia Airlines d.d.

Savska 41

10000 Zagreb

Republic of Croatia

Zagreb, 22 March 2006


INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Croatia Airlines d.d., Zagreb:

We have audited the accompanying financial statements of Croatia Airlines d.d., Zagreb (the“Company”) and its subsidiaries (together, the “Group”) which comprise the balance sheet asat 31 December 2005 and the related statements of income, statement of changes in equityand cash flows for the year thean ended, and a summary of significant accounting policiesand other explanatory notes. These financial statements are the responsibility of the Group’smanagement. Our responsibility is to express an opinion on these financial statements, takenas a whole, based on our audit.

We conducted our audit in accordance with the International Standards on Auditing issued bythe International Federation of Accountants. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and the significant estimates made by management as well asevaluating the overall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

Matters affecting opinion

As described in Note 6, the Company transferred the revaluation surplus which represents thedifference between deprecation based on the revalued carrying amount of the asset anddepreciation based on the asset’s original cost, in the amount of HRK 25,183 thousand throughthe Income statement in accordance with Croatian Tax Law. This is a departure from InternationalAccounting Standard 16 ∑ Property, Plant and Equipment, which requires that the revaluationsurplus should be transferred directly to retained earnings. The retained earnings in the balancesheet at 31 December 2005 are understated, and net income for year then ended is overstatedto the amount of HRK 25,183 thousand.

Opinion

In our opinion, except for the effect of the matter discussed in the previous paragraph, thefinancial statements present fairly, in all material respects, the financial position of the Companyand the Group as at 31 December 2005, the results of its operations, cash flows, and changesin equity for the years then ended in accordance with the Croatian Accounting Law andInternational Accounting Standards effective in the Republic of Croatia for the year 2005.

DELOITTE d.o.o.

Branislav VrtaËnik, Certified auditor

Zagreb, 22 March 2006


CONSOLIDATED CROATIA AIRLINES Group Income Statement and CROATIA AIRLINES d.d. Income StatementFor the year ended 31 December 2005.

2005. 2004.

Croatia Airlines Group Croatia Airlines Group

thousand HRK thousand EUR thousand HRK thousand EUR

Operating revenues 1.410.468 190.598 1.354.707 180.767

Operating expenses (1.374.727) (185.606) (1.249.643) (166.838)

Financial revenues 62.655 3.073 82.320 2.502

Financial expenses (120.113) (10.999) (148.912) (11.299)

Loss / Profit before tax (21.717) (2.934) 38.472 5.132

Income tax expense - - (137) (18)

Net profit for the year (21.717) (2.934) 38.335 5.114

2005. 2004.

Croatia Airlines d.d. Croatia Airlines d.d.


Operating revenues 1.402.597 189.535 1.347.160 179,736

Operating expenses (1.367.926) (184.997) (1.243.074) (165.967)

Financial revenues 62.406 3.382 82.188 2.559

Financial expenses (119.853) (10.998) (148.576) (11.298)

Profit before tax (22.776) (3.078) 37.698 5.030

Income tax expense - - - -

Net profit for the year (22.776) (3.078) 37.698 5.030


CONSOLIDATED CROATIA AIRLINES Group Balance SheetAs at 31 December 2005.

2005. 2004.

Croatia Airlines Group Croatia Airlines Group


Assets

Subscribed capital unpaid - - - -

Non-current assets

Intangible assets 4.114 552 4.633 616

Tangible assets 1.803.047 242.084 1.968.130 264.340

Accounts receivable 90.753 12.304 79.438 10.355

Financial assets 18.744 2.535 16.535 2.018

1.916.658 257.475 2.068.736 277.329

Current assets

Inventories 22.987 3.096 20.222 2.728



Cash and cash equivalents 78.479 10.640 67.526 8.802

227.439 30.816 253.524 33.140

Prepaid expenses and

accrued income 8.937 1.212 4.714 614

Total assets 2.153.034 289.503 2.326.974 311.083

Equity and liabilitesEquity and reserves

Shareholders’ equity 989.985 134.224 989.985 129.052

Share premium account - - - -

Revaluation reserves 242.470 32.874 273.772 35.688

Other reserves 60.674 8.226 134.011 17.470

Foreign exchange differences - (2.420) - 7.629

Accoumulated losses (512.247) (69.452) (550.429) (71.752)

Result for the year (21.717) (2.934) 38.335 5.114

759.165 100.518 885.674 123.201

Minority interest - - - -

Long term risk provisions - - . .

Non-current liabilities 946.774 128.365 1.089.298 141.998

Current liabilities 409.273 55.492 289.212 37.700

Accrued expenses

and deferred income 37.822 5.128 62.790 8.184

Total equity and liabilities 2.153.034 289.503 2.326.974 311.083


CROATIA AIRLINES d.d. BALANCE SHEETAs at 31December 2005.

2005. 2004.

Croatia Airlines d.d. Croatia Airlines d.d.


Assets

Subscribed capital unpaid - - - -

Non-current assets

Intangible assets 3.955 530 4.427 589

Tangible assets 1.801.547 241.881 1.966.613 263.985



1.916.810 257.489 2.069.789 277.468

Current assets

Inventories 22.987 3.096 20.222 2.728



Cash and cash equivalents 76.105 10.318 64.665 8.430

222.373 30.129 248.398 32.474

Prepaid expenses and

accrued income 8.871 1.203 4.636 604

Total assets 2.148,054 288.821 2.322.823 310.546

EQUITY AND LIABILITIES

Equity and reserves

Shareholders’ equity 989.975 134.223 989.975 129.050

Share premium account

Revaluation reserves 242.470 32.874 273.772 35.688

Other reserves 60.207 8.164 133.543 17.408

Foreign exchange differences - (2.426) - 7.635

Accumulated losses (514.109) (69.704) (551.807) (71.932)

Result for the year (22.776) (3.078) 37.698 5.030

755.767 100.053 883.181 122.879

Long term risk provisions - - - -

Non-current liabilities 946.774 128.365 1.089.298 141.998

Current liabilities 408.064 55.326 287.710 37.505

Accrued expenses and

deferred income 37.449 5.077 62.634 8.164

Total equity and liabilities 2.148.054 288.821 2.322.823 310.546


NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2005

Summary of Significant AccountingPolicies

The financial statements have been prepared in accordance with International FinancialReporting Standards (IFRS) as published by the International Accounting Standards Board.

Certain amounts in the previously issued financial statements have been reclassified to conformto the 31 December 2005 presentation.

The financial statements have been prepared on the historical cost basis, except for aircraftand spare engines included in tangible fixed assets, which have been revalued. The principalaccounting policies adopted are set out below.

a) Revenue recognition

Sales of goods are recognised net of sales taxes and discounts when delivery has taken placeand transfer of risks and rewards has been completed.

b) Passenger revenue

Passenger ticket sales are recorded as revenue when the transportation has beenis provided.The value of unused tickets is included in current liabilities as Air Traffic Liability until the datethe ticket expires, after which they are credited to income.

c) Frequent Flyer awards

The Company operates a frequent flyer award program that provides travel awards to membersbased on accumulated mileage. The Company does not accrue for incremental costs formileage accumulated related to this program because the Company believes, based on pastexperience, that such costs are immaterial.

d) Interest income

Interest income is accrued on a time basis, by reference to the principal outstanding and atthe effective interest rate applicable.

e) Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantiallyall the risks and rewards of ownership to the lessee. All other leases are classified as operatingleases.

f) The Group as lessor

Rental income from operating leases is recognised on a straight-line basis over the term of therelevant lease.

g) The Group as lessee

Assets held under finance leases are recognised as assets of the Group at theirre fair value atthe date of acquisition or, if lower, at the present value of the minimum lease payments. Thecorresponding liability to the lessor is included in the balance sheet as a finance lease obligation.Lease payments are apportioned between finance charges and reduction of the lease obligationso as to achieve a constant rate of interest on the remaining balance of the liability. Financecharges are charged directly against income, unless they are directly attributable to qualifyingassets, in which case they are capitalised in accordance with the Group’s general policy onborrowing costs (see below).


Rentals payable under operating leases are charged to the income statement on a straight-line basis over the term of the relevant lease.

h) Foreign currencies

Transactions in currencies other than Croatian Kuna, except as described in the chapterFinancial Statement in euro, are recorded at the rates of exchange prevailing on the dates ofthe transactions. At each balance sheet date, monetary assets and liabilities that aredenominated in foreign currencies are retranslated at the rates prevailing on the balance sheetdate. Non-monetary assets and liabilities carried at fair value that are denominated in foreigncurrencies are translated at the rates prevailing at the date when the fair value was determined.Gains and losses arising on exchange are included in net profit or loss for the period, exceptfor exchange differences arising on non-monetary assets and liabilities where the changes infair value are recognised directly to equity.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifyingassets, which are assets that necessarily take a substantial period of time to get ready for theirintended use or sale, are added to the cost of those assets, until such time as the assets aresubstantially ready for their intended use or sale. Investment income earned on the temporaryinvestment of specific borrowings pending their expenditure on qualifying assets is deductedfrom the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in net profit or loss in the period in which they areincurred.

j) Government grants

Government grants towards development costs are recognised as income over the periodsnecessary to match them with the related costs and are deducted in reporting the relatedexpense.

According to the regulations, the Company allows passengers discounts, and the authorisedGovernment bodies cover the difference up to the full price for the purpose of promotingtourism. Transactions are credited to revenue as they are realised.

Government grants received in the form of direct financial support to the Company withoutany additional costs related thereto, are recogniszed in the income statement for the period inwhich they are obtained.

k) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from netprofit as reported in the income statement in thatbecause it excludes items of income orexpense that are taxable or deductible in other years and it further excludes items that arenever taxable or deductible. The Group’s liability for current tax is calculated using tax ratesthat have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between thecarrying amount of assets and liabilities in the financial statements and the corresponding taxbasis used in the computation of taxable profit, and is accounted for using the balance sheetliability method. Deferred tax liabilities are generally recognised for all taxable temporarydifferences and deferred tax assets are recognised to the extent that it is probable that taxableprofits will be available against which deductible temporary differences can be utilised.

l) Tangible fixed assets

Fixed assets, except for aircraft and spare engines, are stated at cost less accumulateddepreciation and any recognised impairment loss.


Costs incurred in replacing major portions of the Group’s facilities that increase their productivecapacity or substantially extend their useful life are capitalised.

An element of the cost of aircraft relates to regular maintenance checks. These costs aredepreciated over the period from the purchase of the aircraft. Future periodic checks will becapitalised at the time of expenditure and amortised to the next check.

Rotatable spare parts are allocated to the type of aircraft concerned and depreciated overtheir estimated useful life.

In connection with the acquisition of certain aircraft and engines, the Company received certaindiscounts. These discounts are deducted from the cost of the aircraft or are deferred andcredited to the statement of profit and loss on a proportional basis over the operational life ofthe aircraft, depending on the nature of the discounts .

Included in the cost of aircraft is the residual value for each type of aircraft. Depreciation ischarged on a straight-line basis from the first day of the next month after the tangible asset isput in use. Equipment with a useful life over one year and individual cost value over 2 thousandHRK are recorded as assets. Power generating and equipment of low value used in operatingactivities are recorded as tangible assets no matter what their cost.

The Company has engaged the Croatian Society of Professional Valueators, which at 31December 2001 performed qualified and independent valuation of aircrafts and spare enginesusing the market method. The valuation effects are credited and charged to revaluation reserve.

The Net book value of assets that are sold or otherwise disposed of isare included in otherexpenses, and the revenue from their sale is credited directly to other revenue.

The costs of the ATR 42 aircraft are depreciated on a straight-line basis over athe period of 20years with no residual value. Airbus aircraft are depreciated on a straight-line basis over theperiod of 20 years (except for the second- hand Airbus 320 which is depreciated over aperiod of 12 years) after making allowance for their estimated residual value. The cost of “12-year checks” are at a rate of 8.33%, and “6-year checks” are at a rate of 16.67%.

The Airbus and ATR 42 spare parts are stated at cost and depreciated over the estimateduseful life of the aircraft to which they refer (20 years). Ground Service Equipment (GSE) andtools are stated at cost and depreciated over 16.6 years.

Buildings are depreciated over their estimated useful life of 40 years, and other assets overtheir useful life, which ranges from 4 ∑ 10 years.

m) Intangible fixed assets

Included in intangible assets is software, which is measured initially at purchase cost and isareamortised on a straight-line basis over its estimated useful life, which is two years.

n) Investments in subsidiary and associated companies

Subsidiaries are those companies in which the Company has control. Control is achievedwhere the Company has the power to govern the financial and operating policies of an investeeenterprise so as to obtain benefits from its activities. An associate is an enterprise over whichthe Group is in a position to exercise significant influence, but not control, through participationin the financial and operating policy decisions of the investee.

The results, assets and liabilities of subsidiaries and associated companies are presented inthese separate financial statements under the cost method and have been consolidated orpresented under the equity method of accounting in the Group statements.

o) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises directmaterials and, where applicable, direct labour costs and overheads that have been incurred in


bringing the inventories to their present location and condition. Cost is calculated using theweighted average method. Net realisable value represents the estimated selling price less allestimated costs of completion and costs to be incurred in marketing, selling and distribution.

p) Financial instruments

Financial assets and financial liabilities are recogniszed on the Group’s the balance sheetwhen the Group becomes a party to the contractual provisions of the instrument.

q) Accounts receivable

Trade receivables are stated at their nominal value as reduced by appropriate allowances forestimated irrecoverable amounts.

r) Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash inhand, current accounts at banks deposits up to ninety days.

s) Available- for- sale investments

Available-for-sale investments are recognised at trade date and initially stated at cost, includingtransaction costs. The results, assets and liabilities in respect of available-for-sale assets arestated at costs. Investment income is included in the income statement after the date ofacquisition and only to the extent of receipts of the investor based on distribution of accumulatednet profits of the investee. Available-for-sale investments have not been valued at fair valuedue to the immaterial amount.

t) Loans and receivables

Loans and receivables originated by the Group are stated at amortised cost less provision forimpairment, if any related value adjustments are recogniszed in the income statement. Fairvalue of loans and receivables originated by the Group approximates to their carrying amountsbecause they are short- term in nature. Therefore, the Management Board of the Companybelieves that the carrying amounts of loans and receivables approximate to their fair values.

u) Long-term borrowings

Long-term borrowings are recorded at the proceeds received, net of direct issue costs. Financecharges are accounted for on an accrual basis and added to the carrying amount of theinstrument to the extent that they are not settled in the period in which they arise.

v) Accounts payable

Trade payables are stated at their nominal value.

w) Hedging and translation reserves

Loans and finance leases for the purchase of aircraft are denominated in foreign currenciesand as such the Company is accordingly exposed to the risk of fluctuations in exchange rates.The Company has evaluated its foreign currency revenues and determined that foreign currencyrevenues form a highly effective cash flow hedge against its principal and interest payments inforeign currency. Accordingly the Company accounts for unrealised gains and losses ontranslation of the designated foreign currency debts as a separate component of equity. Theeffectiveness of the hedge is monitored by management on a regular basis throughout theperiod.

x) Use of estimates in the preparation of financial statements

The preparation of financial statements in conformity with International Reporting FinancialStandards, as published by the International Accounting Standards Board requires management


to make estimates and assumptions that affect the reported amounts of assets, liabilities,income and expenses and disclosure of contingencies. The significant areas of estimationused in the preparation of the accompanying financial statements relate to provisions forreceivables.

Future events may occur which will cause the assumptions used in arriving at the estimates tochange. The effect of any changes in estimates will be recorded in the financial statements,when determinable.

Financial Statements in EUR

Croatian Law only permits the presentation of the primary financial statements in CroatianKuna. Due to the adoption of the Euro, most European airline companies are now reporting inEuro. Accordingly, the Board of the Company decided in 2003 to change its second reportingcurrency from American dollars (USD) into Euro (EUR). Thus the balance sheets, incomestatements, the statements of changes in equity and of changes in cash flows set out beloware denominated in EUR. The translation into EUR has been performed in accordance withthe relevant accounting policies.

In the preparation of the financial statements as of 31 December 2005 and 2004, the Groupuses the Croatian Kuna as the primary currency for recording transactions. Accordingly, thefinancial statements as of 31 December 2005 and 2004 are stated in kunas and translated toEUR as follows:

Year-end exchange rates have been used for all monetary assets and liabilities:

Non-current tangible and intangible assets together with related depreciation and amortiszation,as well as inventories have been stated as follows:

- Assets, inventories: at historical cost, translated into EUR at the date of purchase.

- Depreciation and amortiszation: calculated on the historical cost, by applying depreciationrates indicated above.

Yearly average exchange rate has been used for all items in the income statement.

The resulting translation difference has been charged/credited to equity in the financialstatements reported in EUR.

Approval of the Financial Statements

The financial statements were approved by the Management Board and authorised for issueon 22 March 2006.

Signed for and on behalf of the Company on 22 March 2006.

Ivan MiπetiÊ Damir ©prem

Managing Director of the Company Executive Vice President


Partnerships

Since 15 December 2004, Croatia Airlines has been a regional member of Star Alliance, themost highly reputed airline association in the world. On that day, the contract signed on 18November 2004 in Frankfurt to associate the Croatia Airlines in the Regional Membership ofStar Alliance came into force.

Croatia Airlines’ first flight as a regional member of Star Alliance was the regular domestic Pula∑ Zadar ∑ Zagreb flight, and the first international flight was that from Skopje to Zagreb.

All aircraft within the Croatia Airlines fleet bear the symbols of this highly reputed internationalassociation of airline companies, and the Airbus 320 aircraft, which was leased in April 2005for a period of three years and named after the town of ©ibenik, has been painted in thecolours of Star Alliance.

With Croatia Airlines’ membership of Star Alliance our passengers have obtained high qualityservices in line with the standards of the other members. They are offered a larger number ofdestinations, more favourable prices within Star Alliance’s whole network of destinations, aswell as many other advantages such as the joint Star Alliance terminals, simplified check-inprocedures, and collection of miles within the Frequent Flyer Programme on any flights offeredby Star Alliance members.

The Star Alliance association was established in 1997 as the first truly global air traffic associationwhich provides its passengers easy access to destinations all over the globe and comfortablejourneys. Its members are: Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi,LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways,Spanair, Swiss International Air Lines, TAP Portugal, Thai Airways International, United, USAirways and VARIG Brazilian Airlines. Besides Croatia Airlines, other regional members of StarAlliance are the Slovenian air company Adria Airways, as well as Finland’s Blue1. The membersof the Association offer more than 15,500 daily flights and cover 842 destinations in 152countries.

Star Alliance members

Code - Share partners


HEAD OFFICE AND MARKETING

Savska 41,

10000 Zagreb

Tel. (+385-1) 61-60-066

Fax (+385-1) 61-76-845

E-mail: [email protected]

PASSENGER SALES OFFICES

BerislaviÊeva 2,

10000 Zagreb

Tel. (+385-1) 48-12-111

Fax (+385-1) 61-60-270


CARGO SALES

Tel. (+385-1) 61-64-573

Fax (+385-1) 61-64-575


BRANCH OFFICES

AMSTERDAM

WTC, Tower B, Level 4,

Schiphol Boulevard 207,

1118 BH Luchthaven

Tel. (+31-20) 316-42-80

Fax (+31-20) 316-42-81

VIENNA

WTC Vienna Airport

Building 645, Room 116

A-1300 Flughafen Wien

Tel. (+43-1) 7007-361-63

Fax (+43-1) 7007-361-64

A-1300 Flughafen Wien/Airport

Building 645, Room 116

Tel. (+43-1) 7007-359-62, 64

Fax (+43-1) 7007-359-63

BRUSSELS

1930 Zaventem/Airport

Box 31

Tel. (+32-2) 753-5133,

(+32-2) 753-5132

Fax (+32-2) 753-5130

DUBROVNIK

Brsalje 9, 20000 Dubrovnik

Tel. (+385-20) 41-37-76,

41-37-77

Fax (+385-20) 41-39-93

Airport

Tel. (+385-20) 773-224

Fax (+385-20) 772-266

FRANKFURT c/o Croatia Airlines

Schillerstrasse 42-44,

60313 Frankfurt

Tel. (+49-69) 92-00-520

Fax (+49-69) 92-00-52-51

Airport

Frankfurt Flughafen, Terminal 1

Hale B, counter 311-312

Tel. (+49-69) 6903 3071

Fax (+49-69) 6905 9415

LONDON

2 The Lanchesters,

162-164 Fulham Palace Road,

London, W6 9ER

Tel. (+44-208) 563-00-22

0870 4100 310 (UK ONLY)

Fax (+44-208) 563-26-15

Airport Heathrow,

Terminal 2, Ground Floor

Tel. (+44-208) 745-46-83,

745-49-37

Fax (+44-208) 754-73-77

MUNICH

Airport/Flughafen

Franz Josef-Strauss, Terminal 2,

Vervaltungsgebäude Nord

Büro B. 4.1322, Terminal 2

85356 München

Tel. (+49-89) 97-592-730/731

Fax (+49-89) 97-592-736

PARIS

9, Rue du Faubourg St. Honoré,

75008 Paris

Tel. (+33-1) 42-65-3001

Fax (+33-1) 42-66-4327

PULA

Ulica Carrarina 8, 52100 Pula

Tel. (+385-52) 218-909,

218-943

Fax (+385-52) 211-998

RIJEKA

JelaËiÊev trg br. 5,

51000 Rijeka

Tel. (+385-51) 330-207, 336-757

Fax (+385-51) 335-931

RIM

Viale Shakespeare 47/1, 00144 Roma

Tel. (+39-06) 5421-0021

Fax (+39-06) 5923-792

Aeroporto Fiumicino

Palazzino EPUA

Tel. (+39-06) 6501-2057

Fax (+39-06) 6501-2056

SARAJEVO

KranjËeviÊeva ulica 4/1

71000 Sarajevo

Tel. (+387-33) 666-123

Fax (+387-33) 258-600

Airport

Tel. (+389-2) 463 158

SKOPJE

Ul. Dame Gruev 3, 1000 Skopje

Tel. (+389-2) 3115-858,

3238-940

Fax (+389-2) 3114-203

Airport

Tel. (+389-2) 2561-850

SPLIT

Obala hrv. nar. preporoda 9,

21000 Split

Tel. (+385-21) 362-997,

362-055

Fax (+385-21) 362-567

Airport

Tel. (+385-21) 203-305,

895-298

Fax (+385-21) 895-297

ZADAR

Poljana Natka Nodila 7,

23000 Zadar

Tel. (+385-23) 250-101

Fax (+385-23) 250-109

Airport

Tel. (+385-23) 334-045,

Fax (+385-23) 312-930

ZAGREB

Zrinjevac 17,

10000 Zagreb

Tel. (+385-1) 48-19-633

Fax (+385-1) 48-19-632

Airport Zagreb

Tel. (+385-1) 61-64-581/582

Fax (+385-1) 61-64-585

ZURICH

Limmatquai 138,

8001 Zürich

Tel. (+41-1) 261-08-40

Fax (+41-1) 261-08-83

PUBLISHER Croatia Airlines d.d., Zagreb, Savska cesta 41

www.croatiaairlines.hr

EXECUTIVE EDITOR Ksenija Ælof

EDITOR ASSISTANTS Ana ∆ulumoviÊ, Davor JanuπiÊ

DESIGN Ivana IvankoviÊ PrliÊ, Nenad VujoπeviÊ

PHOTOGRAPHY Damir FabijaniÊ

PROOF READER Mirjana Miholek

TRANSLATION Lancon d.o.o.

PHOTOLITOGRAFY AND PRINT ZRINSKI d.d., »akovec

USA

Networld

INC./CROATIA AMERICA (GSA)

300 Lanidex Plaza,

PARSIPPANY NJ 07054

Tel. (+1-973) 884 3401

Fax (+1-973) 428 3929

Toll free 888-462-7628

AUSTRALIA

SKY AIR SERVICES (GSA)

7/24 Albert Road,

STH. MELBOURNE

Vic. 3205

Tel. (+61-3) 9699-9355

Fax (+61-3) 9699-9388

NEW ZEALAND

CROATIA TIMES TRAVEL Ltd. (GSA)

131 Lincoln Road,

HENDERSON, AUCKLAND

Tel. (+64-9) 838 7700

Fax (+64-9) 838 7722

JAPAN

DARUMA CORPORATION (GSA)

106 Liberty Hill 3,

3-30-5 YAKUMO,

MEGURO-KU TOKYO 152

Tel. (+81-3) 5701-5651

Fax (+81-3) 5701-5652

(GSA = Glavni prodajni zastupnik)

Scheduled

flights

destinations

Domestic

BraË

Dubrovnik

Osijek

Pula

Rijeka

Split

Zadar

Zagreb

International

Amsterdam

Vienna

Brussels

Düsseldorf

Frankfurt

Istanbul

Lisbon

London

Lyon

Manchester

Mostar

Munich

Paris

Prague

Rome

Sarajevo

Skopje

Tel Aviv

Zurich

SALES AGENTS

EUROPE

ISTANBUL

INTER RUT (GSA),

80280 Zincirlikuyu,

Istanbul

Buyukdere Caddesi No: 122

Ozbezen is Mrk. C Bik K. 10/3

Tel. (+90-212) 212-83-64

Fax (+90-212) 356-28-37

PRAGUE

Blue Sky Travel s. r. o. (GSA)

Ruæová ul. 15

11000 Praha 1

Tel. (+420-2) 2222-2235

Fax (+420-2) 2222-0237

SOUTH AFRICA

TOP HOLIDAYS-BROOKLYN OFFICE

Block C Momentum Office Park

Cnr. Brooklyn Circle & Fehrsen Str.,

Brooklyn

Pretoria 0181

Tel. (+27-12) 346-6869

Fax (+27-12) 346-8292

MIDLE EAST/ISRAEL

BIAF AVIATION SERVICES LTD (GSA)

1 Ben Yehuda St. Migdalor

blgd.5th Floor, Tel Aviv 63802

Tel. (+972 3) 620 0213

Fax (+972 3) 620 8571

korice kom-2005-eng - croatiaairlines.com · 11 croatia airlines annual repor t 2005 in 2005, a...

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