Czech Airlines has decided not to accept the offer of strategic cooperation in charter carriage presented to it several weeks ago by a reputable carrier. The Airline prefers to hive off its charter carriage services into a subsidiary that will take those activities over from Czech Airlines and operate independently on the charter market. The project, aimed at operating charter carriage at the most competitive costs possible, was already under consideration at the end of 2009, as a part of the plan for the long-term stabilisation of Czech Airlines. The management and the bodies of the Airline seriously considered the strategic cooperation offer at a number of meetings concerning its details. This endeavour was led not only by the undertaking to manage the company with due professional care, but primarily by the effort to find a model that would allow Czech Airlines to focus better on its core business, which is scheduled passenger carriage, and that would also ensure the highest possible use of the existing fleet and staff positions.
"The outcome of the negotiations did not meet our expectations, which is why we have decided not to accept the offer.  We will now adhere to the philosophy of a holding arrangement for the company.  I am convinced that, at this moment, that path would be of greater benefit to the company,” said the Chairman of the Management Board and President of Czech Airlines, Miroslav Dvořák, adding: “The costs of our subsidiary will be very low, which will enhance its competitiveness. It will continue to benefit from the long-established know-how of its parent, Czech Airlines. All contracts concluded with charter clients will naturally continue to apply in full, and will gradually transfer to the new commercial entity.”
By this decision, the company’s management confirms the long-term plan to head towards a holding arrangement of Czech Airlines. In January 2010, all passenger and aircraft handling services were hived off into a separate subsidiary. These ground activities thus form a logical unit now, whereby costs and revenues have been made more transparent and room has been created for an overall increase in efficiency. Having charter carriage in a separate entity will further expand the České aerolinie, a.s Group.
Czech Airlines will present detailed information and the basic principles for the functioning of the independent company once they are approved by the Czech Airlines Supervisory Board.