Category Archives: Czech Airlines-CSA

Air Croatia to launch operations on June 14

Air Croatia (Zagreb) will launch weekly operations on June 14 between Gothenburg and Zagreb and also between Gothenburg and Split. Czech Airlines will wet lease an Airbus A319 to the new carrier for both routes.

Czech Airlines to get another new airline partner: Travel Service Airlines

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.

Czech Airlines-CSA:

Travel Service Airlines:

Korean Air:

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.

Czech Airlines to put its first Airbus A330 in service tomorrow to Seoul

Czech Airlines-CSA (Prague) will place its newly-acquired Airbus A330-300 into revenue service tomorrow (June 1) from Prague to Seoul (Incheon). The airliner was delivered on may 14 and is leased from its new partner Korean Airlines (Seoul).

Czech Airlines:

Video (in Czech): OK-YBA’s arrival in Prague on May 14.

Korean Air finalizes its 44% investment in Czech Airlines

Czech Airlines-CSA (Prague) has a new savior. Announced last month, Korean Air (Seoul) finalized its 44 percent investment in the flag carrier yesterday (April 11). The Czech government has now been successful in finding a viable airline partner to help the struggling carrier survive the difficult current environment in Europe. Without a new partner, Czech Airlines would have been liquidated by the government.

However Korean Air has publicly stated it is not interested in managing the the Czech carrier. Korean Air is likely to use its new investment as a feeder airline for its Asian flights.

Read the full report from Reuters: CLICK HERE

Czech Airlines:

Korean Air:

Czech government approves the Korean Air $3.4 million bid to acquire 44% of Czech Airlines

Czech Airlines-CSA (Prague) will have a new airline partner. The Czech government has approved Korean Air‘s (Seoul) $3.4 million offer to acquire 44 percent of the stock of state-owned Czech Airlines.

Read the full report from The Financial Times: CLICK HERE

Czech Airlines-CSA:

Korean Air submits a bid to acquire 44% of the stock of unprofitable Czech Airlines

Korean Air (Seoul) has submitted a proposal to acquire 44 percent of the shares of unprofitable Czech Airlines-CSA (Prague) according to this report by the Wall Street Journal. Reportedly Korean was the only bidder for this minority share. The airline is currently owned by the Czech Ministry of Finance (56.92%), Czech Consolidation Agency (34.59%) and other Czech institutions.

Previously in December 2012, Czech Airlines announced it would acquire the Airbus A330 starting in June 2013, enabling the flag carrier to launch new scheduled service to Seoul, South Korea, and to initiate more intensive code-share cooperation with Korean Air in operating long-haul flights from Prague via Seoul to Asia.

Korean Air wants a larger presence in Europe and, if successful, would not interfere with Czech management of the company.

Read the full report: CLICK HERE

On the financial side, KAL issued this statement:

Korean Air, South Korea’s flagship airline, has announced its financial results for the fourth quarter and full year ending December 31, 2012.

Due to weak economic recovery and high fuel prices, Korean Air posted an operating income of 3,083.5 billion KRW for the fourth quarter of 2012, and an operating loss of 17.6 billion KRW. International passenger and cargo business remained the major revenue contributors for the airline in Q4, accounting for 56.4% and 26.5% of the operating revenue respectively. Compared to the same period last year net income for Q4 increased by 215.1% to 140.3 billion KRW.

For the full year of 2012, the airline recorded an operating income of 12,728 billion KRW, up 3.7% year-on-year, and an operating profit of 322.4 billion KRW. The net income for 2012 returned to the black and reached 256.4 billion KRW.

Copyright Photo: Jacek Fiszer. Czech Airlines has retired its Boeing fleet and now operates an Airbus and ATR fleet only. Airbus A319-112 OK-PET (msn 4258) approaches Warsaw.

Czech Airlines-CSA:

Korean Air:

Qatar Airways is “interested” in the Czech Airlines privatization

Qatar Airways (Doha) is interested in the privatization of Czech Airlines-CSA (Prague) according to this report by Reuters. However the Gulf carrier has not yet made a decision on whether it will bid for the flag carrier.

Read the full report: CLICK HERE

Top Copyright Photo: Dave Glendinning. Brand-new Boeing 787-8 Dreamliner A7-BCL (msn 38330) made its first visit to London (Heathrow) on December 13 where it is pictured landing on the historic first flight.

Qatar Airways:

Czech Airlines-CSA:

Bottom Copyright Photo: Ole Simon. Airbus A319-112 OK-NEO (msn 3452) prepares to land at Stockholm (Arlanda).

Czech Airlines to resume long-haul services with Airbus A330s, will retire the last Boeing 737-500 at the end of the winter season

Czech Airlines-CSA (Prague) is again getting back into the long-haul business with leased Airbus A330s (previously operated with Airbus A310s). The first route will be to Seoul starting in June 2013. The airline is also adding short-range flights to Florence, Nice and Perm (Russia) on March 31, 2013. Czech Airlines is also retiring the last Boeing 737-500 (pictured) at the end of the current winter schedule. The company has issued the following statement:

After a three-year hiatus, Czech Airlines is again including its own long-haul flights in its flight schedule. A wide-body Airbus A330 will join the airline’s fleet, enabling Czech Airlines to launch new scheduled service to Seoul, South Korea, and to initiate more intensive code-share cooperation with Korean Air in operating long-haul flights from Prague via Seoul to the East Asia, based on the model of cooperation being successfully employed with Etihad Airways. The new agreement will also ensure better connections to Czech Airlines flights from Prague to Europe for Korean Air’s clients. In addition to Seoul, Czech Airlines will introduce new service to Perm, Nice, Munich, Zurich and Florence in the 2013 summer season.

The twice-weekly Airbus A330-300 service to Seoul (Incheon) will commence on June 1 per Airline Route. The carrier is expected to also launch A330 service to Almaty, Ekaterinburg and Moscow (Sheremetyevo).

Next June, a long-haul Airbus A330 hired on the basis of operative leasing will join the Czech Airlines fleet. Among other flights, the aircraft will be deployed on Czech Airlines’ new scheduled long-haul service to Seoul. The flights will leave Prague every Saturday and Sunday, and Seoul every Sunday and Tuesday, supplementing the four weekly Korean Air flights. The two airlines will share codes on the route.

Seoul is not the only new destination in the Czech Airlines flight schedule in the 2013 summer season. The airline will open regular service to Perm in Russia, as well as Nice, Munich, Zurich and Florence. To certain destinations, it is introducing a noon flight wave, and increasing the number of flights compared to the 2012 summer season. These destinations include Berlin, Düsseldorf, Hamburg, Copenhagen, Milan, Stockholm and Warsaw. In making a year-on-year comparison, the airline will also offer more weekly flights to Nizhny Novgorod, Rostov-on-Don and Ufa. Czech Airlines will newly add Brisbane, Singapore and Nairobi to its flight schedule, which will be operated in cooperation with Etihad Airways. Another innovation in the summer flight schedule is a change in the model of operation to Baltic destinations. Vilnius, Riga and Tallinn will remain in Czech Airlines’ offer, and will be operated by airBaltic on a code-share basis.

In the 2013 summer season, only Airbus (A330, A320, A319) and ATR (ATR 72 and ATR 42) aircraft will be deployed on Czech Airlines flights. The airline will have thereby complied with one of its last restructuring tasks – the transition to a fleet of just two aircraft makes. Boeing 737-500 aircraft will be retired from the fleet by the end of the current winter season.

Copyright Photo: Ton Jochems. Boeing 737-55S OK-XGE (msn 26543) is currently painted in the SkyTeam colors. The airliner is pictured at Palma de Mallorca.

Czech Airlines-CSA:

Frameable Color Prints and Posters:

Czech Airlines secures European Union approval for a $130 million state loan

Czech Airlines-CSA (Prague) has secured European Union approval for a $130 million state loan after it agreed to a five-year restructuring plan according to this report by Bloomberg.

Read the full report: CLICK HERE

Czech Airlines-CSA:

Frameable Color Prints and Posters:

Czech Airlines slips into the red for 2011

Czech Airlines-CSA (Prague) went into the red in 2011 with a pre-tax loss of $11.8 million. The airline blamed the loss on aircraft commitments and higher fuel costs.

The airline issued the following statement:

“The second year of Czech Airline’s three-year restructuring plan was marked primarily by the continued reorganisation of the company, transformations in its transport network model, and cost optimisation. Last year the airline was impacted by financial leasing obligations for aircraft ordered in the past, and a significant increase in fuel costs. Last year Czech Airlines transferred its subsidiaries Czech Airlines Handling, CSA Services, and HOLIDAYS Czech Airlines to Czech Aeroholding. The money that the airline obtained through these transactions was used to pay instalments on aircraft. This means that Czech Airlines invested nearly a billion crowns into its future assets last year. The airline finished the 2011 financial year with an aggregate loss of CZK 241 million.

Phase two of Czech Airline’s on-going restructuring influenced the airline’s financial results for last year. Czech Airlines continued its human resources optimisation and the optimisation of its sales and transport networks, with corresponding gradual changes in its fleet structure. “Last year Czech Airlines managed to reduce its personnel costs by nearly one third, year on year, and in terms of its fleet size, it is returning to a state that corresponds to the transport network and market potential of a small local market. The structural changes in the transport network unfortunately did not have enough time to fully manifest themselves in last year’s financial results, whether in terms of revenue or costs,” explains Philippe Moreels, Chairman of the Management Board and President of Czech Airlines, adding: “Financial obligations for aircraft ordered in the past had an adverse impact on our financial results. Last year alone Czech Airlines had to invest nearly a billion crowns that it obtained from the sale of assets into new aircraft.”

A significant increase in the price of aircraft fuel also had an adverse impact on the airline’s finances last year. In spite of the planned decrease in aircraft movements by nearly one fifth last year, Czech Airlines noted a nearly 40% year-on-year increase in fuel costs. “The same trend was manifest in the first four months of this year. Although on the revenue side, certain other positive effects of the gradual transformation of the transport and sales network are beginning to show, the increase in fuel costs has nearly eliminated them, at least in the first four months of the year. In its last, third year of restructuring, Czech Airlines will therefore focus even more on reducing its costs, primarily fixed costs, and will also enhance some of its modern pro-revenue projects,” concludes Philippe Moreels.”

Item	2011 (in CZK ‘000)	2010 (in CZK ‘000)
Total revenue	16 905 211	21 518 307
Sales of fixed assets and material	876 271	2 694 502
Total costs	17 146 567	21 442 148
Equity	108 226	376 367
Share capital	5 235 510	5 235 510
Profit/loss before tax	-241 356	76 159