Czech Airlines aims for profit in 2010
Czech Airlines Supervisory Board adopted (26-Aug-2009) measuers to accelerate the carrier’s restructuring programme. The carrier will reduce its operational fleet to 44 aircraft, selling three B737 in 2009 and returning two A310s following the completion of their leases in 2010. The sale of the Boeing aircraft is expected to ensure the carrier has enough cash to survive the upcoming Winter. Linked to the fleet reduction is a plan to cut capacity and reduce management numbers by 20% and other personnel costs by 15%. Czech Airlines will focus on growing its sixth freedom traffic in Europe, and is planning a new approach to market segmentation. The airline will also enhance the use of alternative sales distribution channels, and focus on obtaining new markets and on an expansion outside of the Czech Republic, primarily in charter carriage. [more]
Czech Airlines: “These measures, if they are carried out immediately and thoroughly, will adapt the company permanently to the new market conditions and ensure Czech Airlines a profit as early as in 2010 and 2011, in the order of hundreds of millions of crowns. It is more than clear that there is no other way to reach the goal. Other airlines are struggling with the same task,” Radomir Lasak, CEO. Source: Czech Airlines, 26-Aug-2009.