26-Nov-2010 11:50 AM

Prague Airport to support the stabilisation of Czech Airlines

Czech Airlines and Prague Airport stated the establishment of a new holding company for the two does not threaten competition or create conflicts of interest (Dow Jones, 25-Nov-2010). Czech Airlines Supervisory Board Chairman Michal Mejstrik stated the holding company will not result in a merger of the carrier and the airport, only consolidation at the ownership level. The Czech Government will provide no financial support in the arrangement. Prague Airport General Director Miroslav Dvorak added “there will not be any forbidden transfer” of sensitive business information between the two. Prague Airport is expected to financially support Czech Airlines by directing its dividends into the carrier. Mr Dvorak stated the holding company aims to stablise the carrier by 2012 and eventually privatise some or all companies and subsidiaries.

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