21. 09. 2009 - Czech Airlines Continues Its Restructuring: Announcement of the Key Projects of the Accelerated 2009 Action Plan
Prague, 21 September 2009
On the basis of the approved restructuring plan that was discussed by the Czech Airlines Supervisory Board on 24 August 2009, whereby the Airline is responding to the crisis in the aviation sector and the related drop in revenue, the preparation of key projects in the Accelerated 2009 Action Plan is continuing. These projects are subject to approval by the Supervisory Board, and the Management Board respects the position of the owner that they will only be completed after the Government decides on the privatisation of Czech Airlines.
“In combination with the continuing measures in the sphere of personnel savings, the timely preparation and implementation of these projects constitute necessary preconditions for Czech Airlines to successfully overcome the adverse impact of the global economic crisis, ensure that the operation of Czech Airlines in 2010 would not incur a loss, and develop the company in the upcoming period,” said Czech Airlines’ President, Radomír Lašák, in this regard.
Projects from the following areas are concerned:
1. Core-Business Development:
- Continuation of the pro-revenue activities: focus on the sixth-freedom market (Origin and Destination, O&D); a new approach to market segmentation and corresponding product adaptation; support for the use of alternative distribution channels; and increased sales of supplementary services.
- Analysis of pro-revenue activities
2. Development of Promising Non-Core Business Areas:
- Hiving off the Czech Airlines Technical Division into a separate subsidiary, enabling the entry of a strategic partner to allow for further development (building Hangar G on Czech Airlines’ land) and more efficient contract procurement;
- Hiving off the Czech Airlines Training Centre separate business unit into a separate subsidiary, enabling the entry of a strategic partner for development, and ensuring external orders;
- Creation of a handling company focused on the optimisation of its operations in association with Prague Airport, making it possible to take advantage of mutual synergies, in order to improve the internal efficiency of activities.
3. Ensuring Cash for the 2010 Winter Period (Cash-Flow Enhancement)
- Sale of three Boeing 737 aircraft owned by Czech Airlines.
- Data Centre outsourcing.
- Duty Free: launch of preparations for divestment.
Czech Airlines Press Spokesperson