Czech Airlines slashes first half loss year-on-year

Business News

Sep 13, 2007, 12:35 GMT

Prague - The Czech national carrier Czech Airlines recorded a loss of 175 million koruny (8.75 million dollars) in the first half this year, down by 600 million koruny year-on-year, the company said Thursday. The state-owned airline plunged into the red in 2005 under the reign of former Social Democratic defence minister Jaroslav Tvrdik. New leadership has introduced a three-year restructuring plan in 2006 in an attempt to pull the carrier from the 2005 loss of 496 million koruny back into the black. Czech Airlines has since been cutting costs, attracting richer clients and shedding subsidiaries. The Czech centre-right cabinet plans to sell the national airline after it crawls from the red numbers. The airline plans to make a modest profit of 42 million koruny in 2008, but Czech Transportation Ministry officials doubt the carrier will meet the outlook, the daily Hospodarske Noviny reported Thursday citing a ministry report. The carrier said Wednesday it ordered eight new mid-range Airbus A319 planes to be delivered between 2011 and 2012 and replace its ageing fleet of Boeings 737. The current leadership decided to make use of a purchase option negotiated by Tvrdik in 2004 when Czech Airlines had bought another 12 Airbus planes, the airline said. On Wednesday, the cabinet resolved to take first steps in preparations to privatize a profitable Prague airport. The state-owned Letiste Praha is to be transformed into a joint- stock company within eight months. A strategic partner should enter the airport by the end of 2008. © 2007 dpa - Deutsche Presse-Agentur

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Czech Airlines slashes first half loss year-on-year

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