6. 4. 2005 - Czech Airlines tender for provider to finance new aircraft

Prague, 6 April 2005

Today, Czech Airlines has initiated a tender for a provider for the financing of its 12 new medium-haul Airbus A320 and A319 aircraft.  The new tender is aimed at acquiring a method of financing with the best overall economic effectiveness for a period of 12-15 years with the maximum possible flexibility for drawing on, and repayment of, resources.

Delivery of the aircraft is planned for the 2006-2008 period.  In 2006, CSA will acquire three airplanes, in 2007 five airplanes, and in 2008, four airplanes.  The delivery will consist of:

  • 6 Airbus A320 aircraft for 162 passengers with a two-class configuration 
  • 6 Airbus A319 aircraft for 135 passengers with a two-class configuration

The airline will consider methods of new aircraft financing based especially on financing using guarantees from European export agencies, financing through capital markets, financing supported by the European Investment Bank, and possibly also operative leasing. Several renowned domestic and international banks and financial institutions have indicated their participation in the tender.

CSA initiated the marketing phase last December when it organized a “Bankers’ Day”, aimed at providing the relevant information to potential financing providers and at drawing their attention toward the upcoming tender.  Then the marketing phase continued with an “Investors’ Day“ this April – on this day, potential bidders could present their approaches and the preferred financing structures they considered to be the most suitable for Czech Airlines.

Upon announcement of the tender, the participants complying with the qualification criteria  will receive a memorandum containing detailed information about the company and contract documentation specifying the selection process as well as the requirements of Czech Airlines regarding the parameters of the financing. 

Firm offers are expected in June and the winning offer (financing structure) should be selected till the end of July 2005. Further talks with the winning participant will be held in order to allow the financing to be available by the end of February 2006 at the latest.

For this selection process Czech Airlines is cooperating with renowned international consulting agencies – Weil, Gotshal & Menges (legal adviser), and Deloitte (finance advisor).

Parties (reputable banking and finance institutions) interested in providing the financing can contact the advisor to Czech Airlines at mscholz@deloittece.com.

Jitka Novotná,

CSA Spokesperson