Monday, March 23, 2009

On Monday, Europe’s largest airline, Air France-KLM, stated that it is interested in buying a large part of Czech Airlines (CSA). Last month, the Czech government announced that it is planning to sell its 91.51% stake in Czech Airlines, expecting to generate about US$270 million. The Czech Ministry of Finance owns 56.92% and the Czech Consolidation Agency 34.59%. The remainder is owned by other Czech institutions.

Air France-KLM made a non-binding offer on this share: “Air France-KLM in a letter will today make a non-binding expression of interest in order to have access to detailed documentation on the company”. According to the airline, the Czech government expects no binding offers before June: “Firm offers are not expected before June, after an in-depth analysis of Czech Airlines by the candidates”. Air France-KLM stated that “its [Czech Airlines’] network is highly complementary to that of Air France-KLM. Among other things, it would enable the Group to strengthen its position in Central and Eastern Europe”. Czech Airlines has a fleet of 51 planes.

Both Air France-KLM and Czech Airlines are part of the SkyTeam alliance, which also includes Aeroflot. The latter also expressed interest in buying Czech Airlines.