Czech Airlines-CSA (Prague) and partner Korean Air (Seoul) have announced Korean Air has exercised its option and brought in another equity partner. Travel Service Airlines (Prague) is acquiring a 34 percent share in Czech Airlines. Korean Air retains its 44 percent share.
The airlines issued this statement:
Czech Aeroholding has been informed by Korean Air about its requirement to use option to exercise its right to purchase further 34% of Czech Airline stock from Czech Aeroholding. This step is in accordance with the purchase contract on the sale of 44% of Czech Airline stock signed by Korean Air and Czech Aeroholding in April this year. Korean Air will subsequently sell 34% stake to Travel Service, an air carrier, which will thus become a co-shareholder of Czech Airlines thus joining Korean Air which holds 44% of shares, Czech Aeroholding with the final share of 19.74% and Ceska Pojistovna which will continue to hold its 2.26% share in Czech Airlines.
Korean Air explains the decision to exercise its option on further 34% of the Czech Airlines shares which is to be subsequently sold to Travel Service by its plan to reinforce its operations in Europe. Working together with Travel Service, the company wishes to make Vaclav Havel Airport Prague its European hub. The entry of Travel Service into Czech Airlines will provide Korean Air with connections to approximately 40 new destinations in Europe to which their passengers will be able to fly after their transfer at Vaclav Havel Airport Prague.
As early as in spring of this year, Korean Air purchased 44% of Czech Airlines shares from Czech Aeroholding which it will continue to hold. Now it wishes to use the Czech Airlines platform to collaborate with Travel Service. With regard to the fact that Travel Service, the new shareholder, is a Czech air carrier, Czech Airlines will not lose the status of the so called national carrier.
“We regard the development of Vaclav Havel Airport Prague aiming to make it a Central-European hub as absolutely crucial. The fact that Korean Air is bringing another key partner into Czech Airlines represents a step toward fulfilling this aim. I am convinced this partnership will be advantageous particularly for passengers who, in future, will be able to choose from a more quality product – a wide network of destinations – provided by the three carriers,” said Miroslav Dvorak, chairman of the Board of Directors and CEO of Czech Aeroholding.
In spite of the fact that the contractual documentation might be signed as promptly as possible, it will surely include suspensory conditions. This is because the entire transaction is first subject to approval by the competent antitrust authorities, which may take several months before it can take effect.
In the context of changes of the Czech Airlines shareholder structure, Philippe Moreels, the current President and Chairman of the Board, announced its intention to resign from both positions. “I welcome the entry of Travel Service into Czech Airlines and also perceive it as the culmination of the company’s intensive four year restructuring period. In this new phase, Czech Airlines is going to need some new blood and a change in its management style. Therefore, it is logical that all the shareholders will agree on a new company president after the transaction has been completed. Until then, I will continue to be available and will be working on all the steps necessary allowing the transaction to bring a synergy effect to allthe partners as soon as possible,” said Philippe Moreels about his intention to resign from both his positions after the transaction has been approved by antitrust authorities.
After the transaction has been approved by antitrust authorities, the Czech Airlines statutory bodies will continue to consist of three members and their composition will reflect the new shareholder structure of the company.
Top Copyright Photo: Karl Cornil/AirlinersGallery.com. Airbus A319-112 OK-NEM (msn 3406) of Czech Airlines arrives in Amsterdam with the special 90 Years (1923-2013) logo.
Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Travel Service Airlines’ (Czech Republic) Boeing 737-8CX OK-TVB (msn 32362) prepares to land in Nantes, France.
Boeing (Chicago) and Travel Service Airlines (Prague) have finalized an order for three 737 MAX 8s, valued at $301.5 million at list prices. The Czech Republic-based carrier originally announced a commitment to purchase the 737 MAX in June during the 2013 Paris Air Show. This announcement brings the total number of orders to date for the 737 MAX to 1,498 airplanes.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Travel Service Airlines’ Boeing 737-8Q8 C-GVVH (msn 35275) at Palma de Mallorca this summer still wears the registration used by Sunwing Airlines during the winter. Normally the airliner wears OK-TVH with Travel Service. The new 737 MAX 8s will expand the Boeing fleet.
Oman Air (Muscat) and Boeing (Chicago) today announced an order for five Boeing Next-Generation 737-900 ER airplanes at the 2013 Paris Air Show. The order, previously unidentified on the Boeing Orders and Deliveries website, is valued at $473 million at current list prices.
With this order, Oman Air becomes the first customer in the Arabian Gulf region to order 737-900 ERs. Currently, the airline operates a fleet of 15 Boeing Next-Generation 737-800s and two 737-700s. With this new order, the airline now has a backlog of six 737-800s and five 737-900 ERs. In addition, Oman Air has six Boeing 787-8s on order.
Copyright Photo: Paul Denton/AirlinersGallery.com. Operated by Travel Service Airlines in full Oman Air colors, Boeing 737-86N OK-TVU (msn 38025) prepares to land at Dubai.
Travel Service Airlines (Prague) and Boeing have today announced a commitment for three 737 MAX 8s at the 2013 Paris Air Show, valued at $301.5 million at list prices. The intent will have to be finalized.
Based in the Czech Republic, Travel Service offers charter flights to more than 230 airports on four continents, as well as low-cost scheduled service to major European destinations through its Smart Wings brand.
Travel Service currently operates 28 Boeing 737s. Its fleet combines airplanes bought directly from Boeing as well as leased airplanes.
Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 737-8CX WL OK-TVO (msn 32360) approaches Antalya, Turkey for its landing.
Boeing’s video on Boeing 737 MAX:
Boeing’s new Boeing 737 winglet:
Travel Service Airlines (Czech Republic) (Prague) has unveiled a new Boeing 737-800 logojet which promotes the Moravian-Silesian Region (Czech: Moravskoslezský kraj). The region is one of 14 administrative regions in the Czech Republic with the regional capital located in Ostrava.
Smart Wings (smartwings.com) (Prague), the low-fare brand of Travel Service Airlines (Prague), has painted the first Boeing 737-800 in their colors. The pictured Boeing 737-8K5 OK-TVP (msn 32907), formerly in Travel Service livery, was leased from Aircastle on April 19, 2012.
Copyright Photo: Paul Doyle. OK-TVP is pictured at Dublin on May 19, 2012 operating a rugby charter to London (Luton) with Leinster fans on board for the Heineken European Cup Final which was played at Twickenham.
Travel Service Slide Show: CLICK HERE
Smart Wings/Travel Service Prague Route Map:
Travel Service Airlines (Prague) and GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing unit of GE, announced today (April 11) delivery of a new Boeing 737-800 aircraft leased to the airline.
The aircraft comes from GECAS’ existing order book with Boeing and expands the airline’s fleet. This multi-aircraft deal between GECAS and Travel Service comprises two deliveries in 2011 and three more in 2012. The fifth and final delivery is scheduled for May 2012.
As of the beginning of June 2012 the airline will operate a fleet of 21 Boeing 737-800s and three Boeing 737-700 aircraft to more than 200 destinations on four continents.
Copyright Photo: Arnd Wolf.
Travel Service Slide Show: CLICK HERE
Blue Air (Bucharest) is operating it Boeing 737-8AS YR-BIB (msn 29926) for Travel Service Airlines (Prgue), creating this interesting hybrid livery.
Copyright Photo: Rainer Bexten. YR-BIB prepares to depart from Madrid.
Travel Service Airlines (Prague) has leased Boeing 737-8Q8 SE-RHR (msn 30637) from Viking Airlines.
The Czech government has narrowed the potential winning bidder for stated-owned Czech Airlines-CSA (Prague) down to two bidders – Air France-KLM and the Czech consortium of Unimex-Travel Service Airlines (Prague). The government wants to sell its 91.5 percent stake in the flag carrier. Czech Airlines is a fellow member of the SkyTeam Alliance with Air France-KLM. Aeroflot Russian Airlines has been eliminated from the bidding.