Press Release
ČSA to sell catering and cargo terminal and hold on to cargo
transport and duty free
Prague, October 2, 2006
Based on the results of an analysis of side businesses, Czech Airlines (ČSA) has
decided to sell its catering operation and cargo terminal at Prague Ruzyne airport. The
company is going to hold on to the duty free shops and onboard sales.
Czech Airlines has completed the first stage of an analysis of possible divestments. Its
objective was to assess individual side business lines to see how they fitted into the
company’s main line of business – regular air transport. ČSA’s full focus on the main line is a
part of the strategy that ČSA has adopted and, is at the same time, the basic prerequisite of
achieving competitiveness and returning to a profit situation. Based on a financial analysis,
ČSA management has decided to initiate the sale of the catering and cargo terminal.
The existing ČSA catering will be sold as a unit; the cargo operation divestment will be
divided into two parts. The cargo terminal will be offered for sale by ČSA but the company
will retain cargo transport aboard ČSA aircraft. By its character of additional aircraft
balancing, cargo transport is closely connected with the main business line. However, the
terminal as such can be operated by another owner without any major affect on ČSA.
In both cases a contract with the new acquirer to provide services for ČSA will form a part of
the sale. ČSA contacted prospective investors today by sending out basic information about
the investment opportunity that the sale of the ČSA catering operation presents. Prospective
investors in the cargo terminal will be contacted in October.
ČSA, however, is holding on to duty free. The sale of this would not bring any significant
economic effect because of the restricted lease term of the venues where the shops are
located in the airport. It is more advantageous for ČSA to hold on to this profitable activity.
ČSA is preparing the sale of the catering and cargo terminal in co-operation with an
investment advisor, CA IB Corporate Finance, a.s., and the Pokorný, Wagner & spol. law firm
is providing legal advice for the project. “The basic decision-making criteria for the sale
will be the price and the best agreement on providing cooperation and services for
Czech Airlines,” said ČSA President, Radomír Lašák.
Schedule for selling the Catering and Cargo terminal
The communication with investors, started today, will be followed by the signing of nondisclosure contracts and providing supporting materials in October so that investors can
analyse the investment opportunity. Also in October the company will initiate steps to divide
the catering and cargo terminal into separate subsidiaries. The new companies could be
registered in the Commercial Register in February 2007. ČSA would like to receive indicative
quotes from investors this year and would like to select the winner of the tender for both
companies in February 2007.
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Press Release
ČSA Catering – provides a comprehensive air catering service from preparing meals to
supplying them to ČSA and other carriers’ aircraft.
ČSA Cargo – provides air cargo transport on regular and charter ČSA flights, as well as
operating one of the most modern cargo terminals in Europe at Prague Ruzyně Airport.
ČSA Duty Free involves selling goods aboard ČSA aircraft and in shops at airports. At
present, ČSA operates four Duty Free shops – three in Prague and one in Carlsbad.
Daniela Hupáková
ČSA Spokesperson
*****
Czech Airlines (ČSA) – the largest national carrier of the new EU member countries according to the number of
passengers carried. In 2005, the airline carried a record of more than 5 million passengers. Since 2001, it has
been a member of SkyTeam, one of the leading global airline alliances. ČSA currently offers connections to 120
destinations in 45 countries worldwide. The fleet contains 50 aircraft – ATR 42’s/72’s, Boeing 737’s and Airbus
A310/A320/A321’s.
For the last three years, ČSA has been selected as the “Best Airline Based in Central/Eastern Europe - 2004,
2005 and 2006”. This title is awarded annually by the Official Airline Guide (OAG) and is based on the votes of
frequent business travellers.
In January 2006, Czech Airlines also won the “Best Airline in Eastern Europe” Award (the Annual GT Tested
Awards) for a second year running. ČSA was also on the shortlist of the eight best world airlines in 2005.
CONTACT: [email protected]; Czech Airlines, Ruzyně Airport, PRAGUE 6, tel.: 220 11 6220,
www.csa.cz
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