22. 12. 2006 - ČSA to Turn its Cargo Terminal and Catering Services into Subsidiaries
Prague, December 21, 2006
Czech Airlines (ČSA) plans to turn its Cargo Terminal and Catering Services into separate subsidiary companies. The newly set up business entities will continue to be wholly owned by Czech Airlines. This decision was reached at today's meeting of ČSA's Supervisory Board, which gave its initial approval for the establishment of the new subsidiary companies Air Cargo Terminal a.s. and Czech Catering a.s. By making this move, the company took its initial step towards the intended future sale of both subsidiaries.
ČSA's Board of Directors will now schedule an extraordinary general meeting, which should take place in January and approve the divestment of both divisions. Both of the new entities are expected to be sold at some point in 2007.
ČSA Cargo is currently handling the transport of freight on ČSA's regular and charter flights and it operates the ČSA cargo terminal at the Prague—Ruzyně Airport, which is one of the most modern cargo terminals in Europe. The newly established company, Air Cargo Terminal, is intended to completely take over all air cargo handling operations, including the operation of the terminal itself. ČSA will continue to carry freight and mail on its regular and charter flights.
ČSA Catering provides a full range of in-flight catering services from the production of the meals through their delivery onboard aircraft operated both by ČSA and by other air carriers. All operations, including the newly reconstructed meal production facility at the Prague airport, are intended to be transferred over to the newly established entity Czech Catering. Both of the new companies will also take over the existing staff at ČSA's catering and cargo handling divisions. In total, the two divisions employ roughly 500 employees.
The sales of the Cargo Terminal and the Catering Services are in line with the company's current restructuring plan, which is intended to restore the stability and profitability of the airline.