27. 06. 2007 - CSA’s General Meeting Approves the Annual Financial Statement and Discusses the First Year of the OK 2006-2008 Strategy

Prague, 27 June 2007

The Annual General Meeting of Czech Airlines approved the company’s 2006 Annual Financial Statement and Annual Report today.  In terms of financial results, CSA ended 2006 with an after-tax loss of CZK 396.9 million.  CSA’s results are CZK 100 million better than in 2005, in spite of the far greater financial demands put on the Airline.

Fulfilling the OK 2006-2008 Strategy
Shareholders discussed and took note of the information from CSA’s management assessing performance in the first year of the OK 2006-2008 Strategy, which they approved at their meeting in June 2006, as a three-year concept for rescuing, stabilising, and developing the Airline.  The general meeting noted that all of the key indicators of the Strategy for 2006 have been met.

The strategy is built on four basic pillars:
OK 01  Generating greater revenues from better services
OK 02 Creating an efficient and simpler operational model
OK 03  Ensuring financial stability
OK 04  Creating a high-performance organisation

A Successful 2006
A significant reduction in all costs, and the optimisation of internal processes, brought CZK 557 million in savings in operational costs last year.  Business restructuring and the introduction of standard sales processes was first demonstrably reflected in the growth of revenue in Q4 2006.  The attaining of the OK 2006–2008 Strategy targets, in 2006, serves as a good basis for this year.  The 2007 Plan is built on a solid foundation and, after many years, the Airline should end up with a profit.

Personnel Changes in the Supervisory Board
The general meeting recalled Kateřina Melechová from the Supervisory Board and elected Daniela Kovalčíková in her stead.

Daniela Kovalčíková graduated from the Law Faculty of Charles University in Prague.  She started her professional career as an in-house lawyer in the railway construction company Železniční stavitelství Praha in 1975.  Since 1984, she has worked at the Ministry of Transport, first as an Advisor to the Minister, later as the Director of the Section for Legislation, and then as the Senior Director of the Legislative Division.  Since 2004, she has been a Deputy Minister of Transport.

Daniela Hupáková
CSA Spokesperson