Government Approves Czech Airlines Restructuring

THE GOVERNMENT of the Czech Republic has approved a wide-ranging restructuring plan at Eastern European flag carrier Czech Airlines.  After a failed privatisation programme, Czech Airlines has developed a revised business model to turn the company into what it describes as a “truly stable commercial entity”.
Under the tentative proposals, the business will transition to a holding company structure over the next three years, with Czech Airlines focussing on its core competency – scheduled air transport.
“Financial prognosis models indicate that the proposed measures, taken as a whole, will lead to the renewal of the company’s stability and its long-term viability,” said Miroslav Dvořák, the Chairman of the Management Board and President of Czech Airlines.  “Unless an unforeseen event should occur, we expect that we will be able to look forward to a profitable Czech Airlines in 2012.”
Under the proposals Czech Airlines will cut many loss-making routes from the winter 2010/2011 schedules and will retire all of its Boeing 737s by the end of 2012.