November the 29th, 2022 - The Croatian company ETF Airways, which was born during the pandemic, has become the first company registered in Croatia to be able to fly to the United States of America.

As Poslovni Dnevnik/Marija Crnjak writes, following on from an excellent second summer flight season since its establishment, the Croatian charter carrier ETF Airways has become the very first Croatian airline to receive approval from the US Department of Transportation for flights to the USA, which will initially also open up the Caribbean market for them.

For next year, this company's main plan is additional growth, with an increase in the fleet from three to five Boeing 737-800 aircraft, which will depend on the dynamics of signing contracts for the next summer season, but things are looking very certain, Stjepan Bedic, the CEO of ETF Airways, revealed.

ETF Airways has transported 300 thousand passengers

As is already quite well known, ETF Airways was founded back during the global coronavirus pandemic at the beginning of last year by Croatian investors and bankers, investor Ratko Bajakic, economic analyst Velimir Sonje and banker Zdenko Adrovic, who is involved in the project through his own company - Korta. Among the founders are pilots Dragan Stefanovski and Marko Bankovic, a team of enthusiasts who have already collaborated with Bedic on several startup projects in the wider region, and spent a good part of their careers working for different foreign companies.

ETF Airways took to the skies last June and they aren't a liner company, they instead specialise in flights based on ACMI - aircraft, crew, maintenance and insurance contracts, and this year they mostly flew on the Paris - Greece route, Bedic stated, adding that 2022's summer season was excellent - this company which has about 60 employees will end the year with a profit, but they aren't ready to reveal any of the more detailed figures yet. The potential for growth is significant, and it would be much greater if Croatia made it easier for staff to be employed, explained Bedic.

"In one single year, we flew between 5,500 and 6,000 hours at 150 airports, and transported around 300,000 passengers to different destinations. With two planes in Paris and one in Pristina, we also flew to destinations such as Svalbard, Greenland, and Reunion in the Indian Ocean. We operate on the EU's very competitive market, where there are hundreds of such companies, but there is also a lot of demand. Therefore, growth is planned, but currently the biggest challenge for us is the employment of pilots, because Croatia has a significantly higher cost of labour than some other EU menber states, with a much higher tax burden. Slovakia, Bulgaria, Ireland and other countries are therefore much more competitive than Croatia, which, with a different tax treatment for pilots, similar to seafarers, could have a much more developed aviation industry, i.e. more companies like us," explained Bedic, who believes that and the payment of benefited seniority is outdated and redundant.

Conquering the Caribbean market

ETF Airways is currently hiring cabin crew, and then it will look for more pilots, which will be additionally challenging because strong companies such as Turkish Airlines and Qatar Airways are also in the process of hiring, and their impressive salaries cannot be compared to those offered by smaller companies such as ETF Airways. Although there are 60 employees employed directly by the company, that figure rises to 150 if external service providers in the entire ecosystem are added into the mix.

ETF Airways is entering the demanding American market through a joint venture company with a local French company, and their license to provide services across the pond in the USA will enable them to position themselves in the market of local flights to the Caribbean, as well as to popular American destinations such as Miami. There is a demand for their services there, and depending on the number of contracts signed during the winter for the next summer season, the acquisition of two new aircraft may also come to be. Namely, as Bedic pointed out, the situation on the market is still unstable in terms of last minute flight reservations, and ETF doesn't fly without signed contracts and deposits.

For more, make sure to check out our dedicated business section.

June 9, 2021 - Croatian startup ETF Airways is officially in business! The new charter carrier performed its first flight last week. 

Ex Yu Aviation reported on Tuesday that Croatian startup ETF Airways performed its first commercial flight from Pristina to Helsinki last Friday. 

Recall, the first passenger aircraft Boeing 737-800 with 189 seats of the new Croatian airline ETF Airways, was presented at the end of May at Pula Airport, reports HRTurizam. 

EFT Airways is a new airline in the Republic of Croatia founded in 2020 when the first permanent contract was signed to connect destinations in Southeast Europe with various destinations throughout the European Union, thus officially starting the business of the new Croatian airline. It is important to emphasize that this is a Croatian company.

ETF Airways is not a regular carrier, but its business is oriented towards charter flights and contracts for the lease of its own aircraft, i.e., providing flights to other companies. To enter the first season of operations, the company is launching two Boeing aircraft.

"The market recovered quickly after the pandemic receded in the spring," said ETF Airways CEO Stjepan Bedić, adding that demand for their services outside Croatia was growing above expectations. “We were even a little surprised, but we have a great team that coped with the challenge and prepared the company for the first operating season with two Boeing planes. This is the first time in the last three decades that a Boeing aircraft has entered the regional market," Bedić points out and emphasizes that this is the first time in the past thirty years that a Boeing has appeared on the regional market.

ETF Airways will operate two aircraft this season (the arrival of the second Boeing aircraft is expected in early June), and negotiations are already underway to purchase a third aircraft for 2022. Namely, the airline plans to expand its fleet to seven aircraft by 2025.

ETF Airways is run by three experienced experts who are also members of the board of directors: Stjepan Bedić, Marko Banković, and Dragan Stefanovski. The company's main investors and members are recognized long-term financial experts Ratko Bajakić and Zdenko Adrović. Velimir Šonje, a renowned economist, is the supervisory board's deputy chairman and investor.

Ratko Bajakić, Chairman of the Supervisory Board, said that last year's disturbance in the air market created some new opportunities for which he supported ETF Airways with the capital of his ICF: “Civil aviation is a very demanding job in terms of capital and, normally, entry to such a competitive market is not easy. However, the terms of the lease of large airlines suddenly relaxed after most of the global fleet was grounded. We managed to negotiate excellent leasing terms, which is a springboard for further business expansion. We believe that we have the best management, dedicated and motivated employees who, with the support of investors, will realize the company's ambitious business plan.“

It is almost impossible for smaller companies to compete with giants like Ryanair or Lufthansa, said board member Marko Bankovic, but stressed that the market has many niches related to tourism, with enough space for companies like theirs.

The company has already signed its first permanent contract - connecting EU destinations with non-EU Southeast European countries.

ETF Airways has started operating outside Croatia does not mean that it will not become an important air link for Croatia. "The world is big, but we are primarily a Croatian company," said Velimir Sonje, adding that it is understandable that the pandemic and the focus on car tourists have hampered investment in developing air connections with more distant markets that generate tourists, such as northern Europe, Russia or Israel. 

"Charter planes are irreplaceable as airways, and we are sure that new markets and air connections with passengers with greater purchasing power will open more and more in the coming years. Line charters can extend the tourist season and thus strengthen Croatian tourism. We are a natural partner to major tour operators, hotel owners, and destinations with advanced tourism development strategies. Therefore, in the coming years, I am sure that we will open new markets together and create new values, thus contributing to the evolution of Croatian tourism into a tourism industry with higher added value. We are ready," said Sonje.

In the future, ETF Airways plans to base its second aircraft in Dubrovnik and operate on charter routes from European destinations to Croatian airports, thus supporting the development of Croatian tourism.

Follow the latest on flights to Croatia HERE and the latest travel updates and COVID-19 news from Croatia HERE.

For more on travel in Croatia, follow TCN's dedicated page.

ZAGREB, 29 May 2021 - The first 187-seat passenger Boeing 737-800 of the new Croatian airline ETF Airways was presented at Pula Airport on Saturday and another one is expected at the beginning of next month.

ETF Airways was established last year with the signing of the first permanent contract on connecting destinations in Southeast Europe with those across the EU, it was said.

"The market is recovering quickly after the spring easing of the pandemic. The demand for our services outside Croatia is growing above our expectations. We have a great team of people who have managed to respond to every challenge and prepare our company for the first season of operations with two Boeing airplanes. This is the first time in the past 30 years that Boeing is appearing on the Southeast European market," ETF Airways CEO Stjepan Bedić said.

"Beginning operations outside Croatia does not mean that ETF Airways won't become an important bridge for Croatia's tourism. It's a big world, but we are first of all a Croatian company. A charter plane is an irreplaceable air motorway and we are sure that the opening of new markets and bridges to high-income travellers will continue in the years ahead," said Velimir Šonje, deputy chair of the airline's supervisory committee and one of its investors.

ETF Airways will not be a line carrier but base its business strategy on charter flights and wet lease contracts, i.e. leasing aircraft and crew to other airlines or businesses.

"For smaller airlines it's almost impossible to compete with giants like Ryanair and Lufthansa. However, there are many niches on the market, in part related to tourism, in which there is more than enough room for companies like us," said management board member Marko Banković.

Among the guests at Pula Airport was Boeing's director for Europe, Matthew Bull, and an envoy of Croatia's tourism minister, Ivo Bašić, who said that enterprise initiative like this one were important from a number of aspects as they strengthened Croatia's position on the air destination map.

May 16, 2021 -  The latest flight news to Croatia as Croatian ETF Airways reveals their launch plans for this year.

As previously announced, ETF Airways, a new Croatian start-up registered in November last year, has plans to launch operations in 2021 with charter flights from the Adriatic coast to destinations around Europe. 

Ex Yu Aviation reports that ETF Airways plans to take over its first aircraft next week (189-seat Boeing 737-800), and a second soon after. ETF ultimately plans to operate five aircraft, with one based in Dubrovnik for charter flights and others wet-leased to other airlines. Ex Yu Aviation reports that tour operators are interested, but no deals have been signed yet. 

The company’s CEO, Stjepan Bedić, has no doubt that ETF will help Croatian tourism. 

“Thinking that we are world-famous in tourism and that everyone will come to us is counterproductive. Antalya has thirty million passengers per year. All of Croatia’s coastal airports combined have fewer passengers than Ibiza. What we have are peanuts. We are talking about basing one aircraft in Dubrovnik. By bringing a guest to Dubrovnik everyone will be able to profit from it - hotels, the city, tourist attractions," he said for Ex Yu Aviation. 

ETF will focus mainly on servicing the competitive Croatian coast during the summer months, with a network of destinations, including Dubrovnik, Pula, Split, and Zadar, to airports in France, Germany, and the UK.

ETF is currently looking for partners, companies, and brokers for Aircraft, Crew, Maintenance, and Insurance (wet-lease) and charter opportunities to keep their aircraft on the Croatian coast.

The new start-up has been well received in Croatia thus far, with private investors and investment funds in the country supporting the airline. 

ETF investor, Deputy President of the Supervisory Board, and economic analyst Velimir Šonje said: 

“ETF does not aim to become a big scheduled carrier. Our main goal is to utilize the opportunities which we expect in the coming years through charters and similar arrangement, primarily on the EU market, through flexible and reliable service”.

He added that there will be many opportunities in the post-COVID world.

You can find more about ETF Airways here. 

Follow the latest on flights to Croatia HERE and the latest travel updates and COVID-19 news from Croatia HERE.

For more on travel in Croatia, follow TCN's dedicated page.

February 21, 2021 - Marcos Rossello, the boss and owner of German charter company Sundair, is behind a new airline currently applying for the necessary permits in Croatia. 

Namely, aeroTELEGRAPH reports that Sundair's Marcos Rossello is hoping to introduce a new airline in Croatia.

“The plan is to launch at the end of April or beginning of May,” said Rossello in an interview with aeroTELEGRAPH, and added that they are currently working on obtaining the AOC, which stands for Air Operator Certificate.

The project is called Fly Air 41 - based on the aviation IT company, of which Rossello was once the managing director. However, the new airline will not necessarily keep that name.

"We don't want to comment on details yet," Rossello said.

The new airline should not be a subsidiary of Sundair and should not replace the German airline. Rossello vehemently contradicts such reports in the Croatian media. 

"Sundair is committed to Germany as a business location and to maintaining jobs in Germany," Rossello said. Sundair is also expected to leave its protective shield proceedings in the next two months.  

Recall, Sundair will operate to Brač Island this season from Dusseldorf and Berlin. 

Rossello's new airline hopes to open up new business areas in Croatia. 

"We are in talks with our business partners and also with tour operator Schauinsland-Reisen," concluded Rossello.

Ex Yu Aviation adds that this could be the second new airline to launch operations in Croatia this year, after Croatian start-up ETF Airways plans to work from April this year, given all necessary permits are received. 

ETF plans to focus on Croatia's coast, specifically Dubrovnik, Pula, Split, and Zadar, from France, Germany, and the UK. You can read more about ETF Airways HERE.

For the latest travel info, bookmark our main travel info article, which is updated daily. 

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February 12, 2021 - Croatian start-up ETF Airways (Easy to Fly) will launch on Croatia's coast in April if all necessary permits are received. 

TCN revealed back in January that ETF Airways, a new Croatian start-up registered in November last year, had plans to launch operations in 2021 with charter flights from the Adriatic coast to destinations around Europe. 

“ETF Airways is a new Croatian charter carrier that wants to improve the connectivity of Adriatic coastal cities with European and other destinations. At this point, we are looking for new members of our flying family,” ETF said back then.

While we weren't exactly sure of the start date then, ETF had begun the hiring process for cabin crew, meaning it was only a matter of time.

According to Ex Yu Aviation, that time is April. The aviation portal reported that after the delivery of its first Boeing 737-800 next month, leased from AerCap, ETF could launch in April if all permits are acquired. 

ETF will focus mainly on servicing the competitive Croatian coast during the summer months, with a network of destinations, including Dubrovnik, Pula, Split, and Zadar, to airports in France, Germany, and the UK.

Ex Yu Aviation adds that the new carrier's fleet should contain two B737s this summer, and if all goes to plan, three jets early next year and up to seven aircraft in 2025. Since ETF will have Croatian registration, it will be able to fly within the EU. Now that the airline has completed its hiring process, it is searching for partners, ACMI companies and brokers, and the like. 

The new start-up has been well received in Croatia thus far, and Ex Yu Aviation adds that private investors and investment funds in the country support the airline. 

ETF investor, Deputy President of the Supervisory Board, and economic analyst Velimir Šonje said: 

“ETF does not aim to become a big scheduled carrier. Our main goal is to utilize the opportunities which we expect in the coming years through charters and similar arrangement, primarily on the EU market, through flexible and reliable service”.

He added that there will be many opportunities in the post-COVID world.

You can find more about ETF Airways here. 

For the latest travel info, bookmark our main travel info article, which is updated daily. 

Read the Croatian Travel Update in your language - now available in 24 languages.

Join the Total Croatia Travel INFO Viber community.