Czech gov’t starts airline sale, looks for adviser
Czech government launched the sale of flagship airline CSA on Wednesday by announcing a tender for a privatization adviser.
Prime Minister Mirek Topolanek said the tender for the adviser would start on April 15, and the winner would then recommend a timetable and a method of the sale. “After an adviser is chosen and presents us a document (on how to proceed), we hope to finish the privatization within months,” Topolanek said after a government meeting. A study from consultants Deloitte Advisory recommended a sale to a strategic investor in a tender, the government said on its Web site. Topolanek did not give any estimate of the expected revenue, but analysts have said the state could raise around 5 billion koruna ($312.1 million) for its 91.5% stake.
The airline has gone through a restructuring program to recover from three years of losses after a costly expansion of its fleet, and agreed to sell its cargo and catering divisions. The firm reported a net profit of 111 million koruna last year after a loss of 396 million in 2006, based on Czech accounting standards. It expects a net profit of 391 million koruna in 2008. CSA, a member of the Skyteam alliance which also includes Air France-KLM and Delta Air Lines and Alitalia, operates a fleet of around 50, mostly mid-range planes.
The Czech government also plans to start the privatization of Prague’s main airport, Letiste Praha, expected to bring in of up to 100 billion koruna ($6.2 billion). The cabinet should discuss the sale within two to three weeks, a spokesman for the finance ministry said. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.