13. 12. 2006 - ČSA to terminate unprofitable service to Dubai in January
Prague, December 13, 2006
Starting in January, Czech Airlines (ČSA) will be terminating its unprofitable service between Prague and Dubai in the United Arab Emirates. The last regular flight to Dubai is to take place on January 6th, returning to Prague on January 7th. ČSA made the decision to cancel this service after a thorough analysis and a review of the different options for continuing regular service on this route. Part of the analysis was also an examination of the so-called 'network effect' – or, in other words, to look at how this route would impact other ČSA service. The results showed that the positive impact of this route on other ČSA connecting flights (the number of transferring passengers) was minimal.
The service had primarily been used by Czech tourists. However, due to the recent price increases in the United Arab Emirates, the tourist business has been looking at alternate locations, which have turned out to be in the Caribbean. Here ČSA provides service through its charter flights.
The termination of the regular ČSA service to Dubai should have no impact on any future strategic plans of the airline with respect to its long-distance fleet. The decision to drop this service was made hand-in-hand with the airline's new corporate strategy, which plans to eliminate service on unprofitable routes and to instead, focus on routes and markets with greater profit potential.
Should there be a future demand for service to this destination by travel agents, ČSA will of course be able to offer seasonal charter flights to the area. The planes used by the airline for the Dubai service will largely be used for long-distance charter flights in the future.
ČSA will provide refunds to all passengers who have purchased tickets for later flights, which will be cancelled.