9. 10. 2006 - ČSA employees in talks on additional cost-cutting measures

Prague, October 9, 2006

At today's ČSA employee meeting, representatives of the company's senior management and representatives of its all unions expressed their joint interest in initiating further negotiations on additional cost-cutting measures at ČSA. This step however will not lead to any reopening of any of the collective agreements, which are good until the end of 2007. These negotiations are in accordance with the OK Strategy 2006 – 2008 and they are an essential part of the ongoing efforts to deal with ČSA's current situation. The key task is to restore the airline's profitability. 

The unions have asked the company's senior management for a financial analysis of ČSA's future strategic options that are under consideration. These would include the company's size (fleet size and number of staff), the timing and percentages of any personnel cost-cutting in the future and also a statement of the measures that have already been implemented in terms of revenues and costs leading to the financial recovery of ČSA. It is within the interest of all of the company's employees to deal with this difficult transition for the company, which has been scheduled by the management to take place in the years 2006 -2008, or respectively, 2009.

As indicated by ČSA's president, Radomír Lašák, "Our priority is to maintain the existing fleet of 50 aircraft and a corresponding number of staff – i.e. roughly 5,000 employees. I am convinced that all ČSA employees will be able to handle the current difficult financial situation without the need to dramatically reduce our fleet's size. ČSA will continue in its successful efforts to identify and implement cost-cutting measures while also working to boost its income – in other words, in ČSA's ability to sell tickets for attractive prices and to return the company to good financial shape."

Daniela Hupáková
ČSA Spokesperson