New state firm to oversee Czech Airlines and Prague Airport

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Czech Airlines' business divisions and the operator of Prague Airport are to be brought under a single state-run holding company, Czech Aeroholding, over the next two years.

The joint-stock holding company will include not only the carrier and the airport but also the charter airline and aircraft maintenance subsidiaries.

Czech Airlines' chief, Miroslav Dvorak, who also heads the airport's management board, says the decision is a "logical continuation" of the carrier's restructuring.

Subsidiaries will also be established for cockpit, cabin crew and engineering training as well as facility management, and be brought into the holding.

Czech Airlines says the Government has approved the creation of the holding company which will "co-ordinate, financially manage, and implement synergies throughout the group".

Each business division will be left to concentrate on its core activity, it adds, while Czech Aeroholding will be set up as a "stable and strongly-capitalised entity directly overseen by the Government".

Czech Airlines says the structure will achieve "significant operating and financial savings" through synergies.

"All subsidiaries will be autonomous in terms of their business and will maintain level conditions with respect to all business partners," it adds. "In the case of any company in the holding encountering difficulties, their separate functioning will also ensure protection for the others from any adverse impact caused thereby."

Czech Airlines says the plan does not require state budget support and stresses that it is in line with European and national competition laws.