10. 9. 2004 - České aerolinie a.s. are awaiting final offers from aircraft manufacturers on 15.9. 2004

Prague 10 September 2004

Negotiations with Boeing and Airbus in terms of the tender for the delivery of twelve medium-distance next generation aircraft for ČSA are coming into their closing stages.  Another part of this tender is the selection of engine manufacturer in which ČSA is to select between two of the largest global manufacturers - International Aero Engines and CFM International.

We sent the aircraft and engine manufacturers a call for the submission of their final offers yesterday on the basis of approval by the board of ČSA. We expect both manufacturers to submit their best offers by Wednesday 15.9.2004 by 3 o’clock p.m.,“ said the head of the selection committee and head of strategy at ČSA, Jan Váňa. 

The whole of the first phase of negotiations was concluded today with the meeting of the company president and the chairman of the board, Jaroslav Tvrdík with representatives of the individual manufacturers – the vice president of Boeing, Mr. M. Dailey and the vice president of Airbus, Mr. C. Buckley. J. Tvrdík again emphasised to both of them the areas, which ČSA management would be placing the most emphasis on when evaluating the final offers. He underlined the strategic aim on the part of ČSA that introduction of the next generation aircraft into the ČSA fleet should be commenced as early as 2005.

 ČSA is counting on the fact that it will acquire both the next generation charter specials and also the next generation aircraft intended for regular flights as early as 2005 in the form of operational lease from one of the large leasing companies.
So far, the offers submitted exceeded the expected levels in certain respects as far as our financial planning for 2004-2014 is concerned and it is with great pleasure that I was assured by both manufacturers that there would be further improvement in their financial offers“, stated Jaroslav Tvrdík.

The tender, technical preparation for which was commenced by ČSA as far back as the end of last year is coming into its most decisive phase. After opening the envelopes with the final offers, these will then be evaluated with the aid of an evaluation model, which ČSA has prepared together with the ČSA financial consultants, McKinsey & Company and which is based on assessment of the Net Present Value of the offers, which are the subject of the tender.Thanks to this standard method of evaluation used in similar cases, not only by air carriers but also by companies in other fields of business, ČSA will be able to objectively evaluate the fulfilment of their expectations. All applicants fulfilled the operational-technical expectations of ČSA and the only criteria for the final decision will be the economic effectiveness of the submitted offers for ČSA.

The tender was announced and is running in full accordance with the appropriate legal regulations of the Czech Republic as well as the internal regulations of ČSA and we have not encountered anything during its course, which did not correspond to standard procedure for tenders of a similar extent“, stated Karel Muzikář, main partner at the legal offices of partner Weil, Gotshal & Manges, who are consultants for ČSA.

Another important landmark in the acquisition of next generation aircraft is 30 October 2004.  As has already been announced, ČSA plans to conclude a purchase contract with the chosen manufacturer and to fully launch a whole range of measures required in order to further expand the ČSA flight season for 2005 by this date and to improve the quality of services for their customers with the aid of the most state-of-the-art aircraft in their class in the world. 

Dana Dvořáková
ČSA Head of Communications