28. 6. 2006 - CSA Annual Shareholders' Meeting Approves a New Corporate Strategy
Prague, June 28, 2006
At today's annual meeting, the shareholders of Czech Airlines approved the company's 2005 annual report and the 2005 financial statements, as submitted by the board of directors for approval. The loss of CZK 496 million incurred by the company in 2005 will be allocated to the account for unpaid losses from previous years without the use of any capital funds. As part of the above meeting, the shareholders directed the board to undertake specific steps that are designed to lead to a stabilization of the company's financial picture and to subsequently make up for the losses incurred in previous years.
Based on an evaluation of the company's ability to meet the objectives of the previous 2005 – 2015 CSA Corporate Strategy, the annual meeting made a decision to terminate any further implementation of that strategy and moved to approve a new management strategy – a three-year plan for the stabilization of Czech Airlines, referred to as 'OK 2006 – 2008'. The plan is designed to help the company return to profitability by the end of this period. Information about the progress in meeting the key indicators that are part of this plan will be submitted to each of the company's annual shareholders' meetings.
The shareholders of the company also made a decision to make the following changes in the corporate bylaws: In the future, the Supervisory Board will approve the system used for the remuneration of the members of CSA's Board of Directors, including the assessment and evaluation of their personal performance indicators. A closer relationship between the number of senior management staff and the number of members of the board of directors will also contribute to a better ability to adhere to the so-called 'German Management Model' at CSA – a move, which will result in a simpler and more effective system of management.
Czech Airlines Spokesperson