Korean Air bringing new key partner into CSA Czech Airlines– Travel Service
Czech Aeroholding stated (05-Dec-2013) it has been informed by Korean Air about its requirement to use an option to exercise its right to purchase further 34% of Czech Airline stock from Czech Aeroholding. This step is in accordance with the purchase contract on the sale of 44% of Czech Airline stock signed by Korean Air and Czech Aeroholding in Apr-2013. Korean Air will subsequently sell 34% stake to Travel Service, which will become a co-shareholder of Czech Airlines joining Korean Air which holds 44% of shares, Czech Aeroholding with the final share of 19.74% and Ceska Pojistovna which will continue to hold its 2.26% share in CSA. Korean Air explains the decision to exercise its option on further 34% of the CSA shares which is to be subsequently sold to Travel Service by its plan to reinforce its operations in Europe. Working together with Travel Service, the company wishes to make Vaclav Havel Airport Prague its European hub. The entry of Travel Service into CSA will provide Korean Air with connections to approximately 40 new destinations in Europe to which their passengers will be able to fly after their transfer at Vaclav Havel Airport Prague. With regard to the fact that Travel Service, the new shareholder, is a Czech air carrier, CSA will not lose the status of the so called national carrier. "We regard the development of Vaclav Havel Airport Prague aiming to make it a Central-European hub as absolutely crucial. The fact that Korean Air is bringing another key partner into Czech Airlines represents a step toward fulfilling this aim. I am convinced this partnership will be advantageous particularly for passengers who, in future, will be able to choose from a more quality product - a wide network of destinations - provided by the three carriers," said Miroslav Dvorak, chairman of the Board of Directors and CEO of Czech Aeroholding. After the transaction has been approved by antitrust authorities, the Czech Airlines statutory bodies will continue to consist of three members and their composition will reflect the new shareholder structure of the company. [more - original PR]