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https://www.exyuaviation.com/2022/05/cr ... estic.htmlMAY 04, 2022
Trade Air has suspended its domestic flights operating under Public Service Obligation (PSO) contracts
after the Croatian government failed to conclude new ones with operators.
The new agreements, involving twelve routes, were due to come into effect on May 1 and run until March 28, 2026.
The Croatian government began tender procedures to select operating carriers back in November of last year.
PSOs make European funds available for unprofitable, primarily domestic routes,
which are considered vital for the economic development of the region they serve.
The previous four-year contracts, held by Trade Air and Croatia Airlines, expired back in March 2020
but were extended until this May 2022
due to the coronavirus pandemic.
The tendering process for the new PSO routes closed in late December 2021.
The Croatian government has given no explanation for the delay nor when the contracts could be awarded.
Trade Air has returned a Turbolet L-410 aircraft it has been wet-leasing for the short domestic routes.
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