19. 12. 2008 - Czech Airlines Will Realise Significant Savings in Engine Maintenance

Prague, 19 December 2008

Czech Airlines took another step towards the more efficient functioning of the Technical Section, which represents savings of at least ten million dollars up to 2015.  The signing of an agreement with Snecma Services on cooperation in aircraft maintenance will thus bring Czech Airlines significant savings in input costs over the next few years.  The new form of cooperation is one of the priorities of the Technical Section’s Strategy.

By signing a new, more advantageous agreement, Czech Airlines expects to save up to 1.7 million dollars in 2009, and compared to the present situation at least ten million dollars over the term of the contract.  The engine maintenance agreement signed will run up to 2015.  The agreement concerns the maintenance of a total of 42 engines for Czech Airlines’ Boeing B737-400 and Boeing B737-500, specifically the CFM56-3.  The engines of these aircraft will continue to be repaired in the Belgian branch of Snecma Services Brussels, but subject to more advantageous conditions.  The new agreement is also innovative for Czech Airlines in terms of its manner of payment and administration.

Snecma Services won the tender announced by Czech Airlines. The conclusion of a more advantageous form of cooperation is also one of the fast measures in the Technical Section’s Strategy, approved by the Czech Airlines Management Board in July 2008.

The signing ceremony for Czech Airlines’ agreement with Snecma on 17 December was attended by Snecma Services’ Chairman and Managing Director, Denis Vercherin, vicepresident for sales and marketing Roupen Karakachian and CFM’s viceprezident for Europe and Middle East Jean-Pierre Vernon, and on behalf of Czech Airlines by Roman Planička, Vice-President for the Technical Section, and František Šír, Managing Director of the Supplier Services Management Section.  The signing was attended by other representatives of Snecma Services and CFM, the manufacturer of these engines.

The Technical Section and Cost-Cutting Measures
Czech Airlines is looking for savings on input costs in 2009 mainly in the Technical Section.  The main priorities of the Technical Section currently include increasing the efficiency of repairs and overhauls of CFM56-3 engines.  Over the last few months, the Technical Section has gone through a significant improvement in the efficiency of maintenance administration and management, with the launch of a modern integrated maintenance management system, MRO.

Czech Airlines will continue to look for savings and more efficient solutions in the future, as well. A common goal is to appropriately respond to the impact of the economic crisis, which brings a decline in demand for air carriage and which could yet deepen in 2009.  The Czech Airlines management has therefore prepared a set of measures for the upcoming period, including a focus on projects that offer a fast return and further cost reductions.

Daniela Hupáková
Communications Director
Czech Airlines Press Spokesperson