26-Oct-2009 10:35 AM

Czech Airlines Supervisory Board reviews stabilisation plan

Czech Airlines' Supervisory Board discussed (20-Oct-2009) a proposal for the long-term stabilisation of the airline, which was drafted by the new Chairman of the Management Board, Miroslav Dvořák, in cooperation with Deloitte. The proposal verifies that the cost plans by the previous management were "realistic" and it is "conservative" in terms of revenues. The new Czech Airlines Management Board will focus primarily on reducing costs and taking advantage of possible synergies with Prague Airport. It will "also actively enhance the revenue potential, primarily in the sphere of ticket distribution or active marketing policy". [more]

Czech Airlines: "The conservative prognosis, on which the programme for the long-term stabilisation of Czech Airlines is based, reckons with a loss of CZK 3.2 bn this year, and a slight loss in 2010. Czech Airlines could get back into the black in 2011. A necessary prerequisite is the continuation of the projects that have been commenced, such that the airline’s liquidity is maintained and enhanced, operating costs are reduced significantly, and the scope of assets required for the airline’s core business defined. “With this, Czech Airlines could again be counted among the major profitable domestic companies,” said Miroslav Zámečník", Chairman. Source: Czech Airlines, 20-Oct-2009.

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