Government Approves Creation of Czech Aeroholding
In an evening meeting yesterday, the government approved the creation of a holding company from state-owned air transport and ground services firms. The inclusion of Czech Airlines, its subsidiaries, and
Current Business Relationship between
Chief Benefits of the New Model of Functioning
Management of the individual companies under the holding company will have a positive impact on costs, thanks to the ability to combine services, for instance, information technology services, human resources, the call center, accounting, purchasing of goods and services, aircraft and passenger check-in (handling), etc. The value of assets will also be increased for the chief stockholder, the state. "I welcome the government's decision. The creation of a holding structure represents a logical continuation of the process begun under the restructuring plan for Czech Airlines in autumn of last year. In addition to stabilizing the national airline, this process will aid further development of Prague/Ruzyne Airport as a Central European transport hub,“ said Miroslav Dvorak, General Director and Chairman of the Board of Prague Airport and President and Chairman of the Board of Czech Airlines. Importantly, the holding company will also obtain more advantageous conditions for securing long-term financing for the entire group and its subsidiaries.
Structure of the Holding Company
The role of the newly created parent company, Czech Aeroholding, a.s., will be to coordinate, undertake financial management and realize synergies within the group as a whole. Each subsidiary in the group will be able to focus on its primary business goal – airport operation (Prague Airport); the operation of scheduled transport (Czech Airlines); the operation of unscheduled transport (charter flights – Holidays Czech Airlines); ground check-in of aircraft and passengers (Czech Airlines Handling); aircraft maintenance (Czech Airlines Technics), training of pilots, stewards and technicians (a subsidiary will be founded with this focus); and Facility Management (a subsidiary will be founded). All subsidiaries will function autonomously and will treat all business partners on an equal basis (e.g., all airlines will be on an equal footing with
The entire project is self-financed, without any backing from the state budget. The structure of the holding company has been designed in keeping with both national rules and European competition regulations. Implementation of the project is subject to approval by the Office for the Protection of Competition, a national body. The holding company structure will be phased in gradually during a transition period. This process should be concluded by 2012, at the latest.