The Croatian government is set to open a new Public Service Obligation (PSO) tender to maintain vital domestic air routes, with millions in subsidies up for grabs.
Current contracts, awarded to Croatia Airlines and Trade Air in 2021, will expire by 2026, prompting a rush for the coveted slots.
Ryanair, the Irish budget airline with hubs in Zagreb, Dubrovnik, and Zadar, is eyeing the opportunity to enter the domestic fray.
The PSO program supports airlines flying less profitable but crucial routes, such as Zagreb–Dubrovnik and Zagreb–Brač.
However, the highly subsidized Zagreb–Dubrovnik route, which remains controversial, stirs debate over whether public money should sustain such a popular and profitable connection.
Meanwhile, regional airports like Rijeka feel sidelined by the current PSO system, which they argue hinders growth.
The new tender could reshape Croatia’s aviation landscape as it welcomes EU competitors. Will Ryanair’s entry mark a shift in the balance of power, or will Croatian carriers continue to dominate?
