"I call on the strikers to see reason and to relinquish a portion of their income, because that is the only chance for CA to survive. The other option is stiff penalties, actually bankruptcy," Hajdas Doncic told the press in the southern coastal city of Split.

The minister urged the management and the trade unions to continue talks in order to find common ground and save the company, expressing his conviction that CA could survive.

When asked whether a possible bankruptcy would send out a bad message ahead of the tourist season and spoil the country's tourism plans, Hajdas Doncic said that air transport in Croatia had been liberalised and noted that there were companies interested in "succeeding" CA.

"This may sound a little harsh, but there are low-tariff airlines out there that can hardly wait to enter CA's market," he said, adding that after the government submitted its plan worth 1.1 billion kuna for the restructuring and recapitalisation of CA, several low-tariff carriers had applied to the European Commission.

When asked if it was possible for the company to make savings by cutting other costs rather than slash salaries of its staff, the minister categorically said there was no such possibility.

Hajdas Doncic said that the management and the shareholders were discussing possible recapitalisation of the company.

The minister also commented on a planned strike by Croatian Railways (HZ) engine drivers, scheduled for Wednesday. He said there was no reason for the strike because the workers received their pay regularly.

Hajdas Doncic warned that railway passenger transport would be liberalised by 2017, when any rail company would be able to come to Croatia to provide transport services, so HZ should prepare for competition by then.