CSA transfers charter flights to subsidiary Holidays Czech Airlines.

By bne IntelliNews June 2, 2010
The state-controlled national flag carrier Czech Airlines (CSA) transferred its charter flight business to subsidiary Holidays Czech Airlines, CSA spokesperson Hana Hejskova announced. After obtaining all necessary licences, Holidays Czech Airlines will become an independent airline, but will also continue operating as a travel agency. CSA employees in the charter flight division were also transferred to the new independent subsidiary. The transfer of specific activities is part of the rescue plan approved by the management of the loss-making company. Under the plan, if the established subsidiaries prove ineffective, they would be closed down. Other steps include a staff reduction (currently at 3,300) by 10% and of aircrafts (currently 49) by nearly one-third, as well as more asset sales to support the company with fresh capital. CSA reported a record-high loss of CZK 3.7bn (EUR 139.9mn) in 2009 against a gross profit of some CZK 500mn in 2008. A few days ago CSA shareholders approved a 92.6% capital hike through swapping CZK 2.5bn (EUR 97.6mn) in CSA debt to state-owned firm Osinek for equity, with which CSA capital will be increased to CZK 5.2bn and the state ownership - to 95.7% from 91.75%.

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