Outcome of the deliberations of the Czech Airlines Supervisory Board
20-Oct-2009 At its meeting today, the Czech Airlines Supervisory Board discussed 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. In drafting it, they worked with the materials produced by the previous Management Board and Supervisory Board.
The proposal verifies that the costs planned on by the previous management were realistic, and it is conservative in terms of the revenue. 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.
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 the Chairman of the Czech Airlines Supervisory Board, Miroslav Zámečník.
"The new Czech Airlines Management Board will focus primarily on cost reductions and possible synergies with Prague Airport," said Miroslav Dvořák. According to him, savings could be achieved, for example, by centralising the purchasing of goods and services. The combination of individual commodities could open up space for achieving better conditions in negotiation with suppliers. Savings could also be gained through the optimisation of airport capacity, such as by minimising the costs of flight operations.
Miroslav Dvořák also wants to take advantage of synergies in the personnel area, on the management level. Furthermore, it must be considered whether certain similar activities need to be carried out in parallel. Negotiations will also continue with the representatives of the Czech Airlines union organisations, over the reduction of wage costs. "I am planning to increase revenue primarily by focusing on improving the ticket sales system and on strengthening active marketing," added Miroslav Dvořák.