Other European Frequent Flyer Programs - CSA flyers rejoice! Air France-KLM Withdraws Bid!

Air France-KLM Pulls Out Of CSA Czech Bidding
Air France-KLM pulled out of the bidding for state-owned CSA Czech Airlines on Wednesday, citing the impact of the economic environment on the airline business.

Europe's biggest carrier said economic circumstances meant CSA could focus instead on trying to restore its profitability on its own through a recovery plan.

"In this context Air France-KLM wishes to further strengthen the existing partnership between the two groups and to continue to explore with CSA any new areas of cooperation that could be of mutual benefit to each company," it said in a statement.

.....

"Air France-KLM today informed the Czech Ministry of Finance of its decision to withdraw from the tender process for the privatisation," Air France-KLM said on Wednesday.

A spokesman for the Czech ministry did not have any immediate comment.

Story continues here (http://news.airwise.com/story/view/1250667603.html).


Fittingly, I find myself in PRG and I'm off to celebrate with copious quantities of Staropramen! :D

Story continues here (http://news.airwise.com/story/view/1250667603.html).


Fittingly, I find myself in PRG and I'm off to celebrate with copious quantities of Staropramen! :D

Not bad news at all...:)

Indeed we (OK+ members) seem to have escaped the gaping jaws of the FD programme - intent on killing off any possible benefit OK+ ever offered. I don't know what the sole remaining (mainly Icelandic) bidder is going to do. The Czechs are not in a positive mood - so no idea what will happen with the airline. Dropping the PRG-JFK route seems rather panicky - and a grounded airline also won't bring a lot of benefits - not too many Staropramens for me here (I prefer Primator anyhow ;-))

I think this is good news for OK+. It won't turn into FlyingBlue just yet.

But I wonder how good this will be for the airline itself. The current management/government really doesn't want to invest any money into the company and they are just selling off their capital. This can only keep going on for so long.

I disagree. Absent a proper longhaul fleet, it is pointless to run the 310 just for essentially one route that goes straight to the hub of an alliance partner. The Airbuses are a lot more fuel-efficient than the 734s, other costs have been trimmed/revenue opportunities raised (I mean, who would choose to fly CSA for the extra 3kgs of baggage allowance they used to give?), labour costs are lower than most competitors', and the focus on N. East/C. Asia is sure to pay off when the global economy (and oil price!) rebounds.

The Czech government has done a pretty good job of keeping politics out of airline management, and that is reflected in the decent financial results obtained.

The best solution would be if they realised that OK can't be sold easily right now, and decided to keep the airline in state ownership and invest a bit more money in it (but, again, I am not sure about a longhaul operation- maybe try and get CZ to fly to PRG? I've seen quite a few KE pax connecting to/from my flights on CSA).

I can see how the YYZ route is hard to keep up with few connections in a *A hub. And keeping one long-haul aircraft for the JFK route might be expensive, okay. (Even though I think the route itself if worthwile flying.)

But this is just a last step in a series of moves to sell CSA capital: catering, and spare Airbus engine to name a few. Sure financials are good now. But the decent financial results have only been achieved through the sale of bits of capital every year. Works now, will probably work next year, but how long can it keep going?

My memory is a little hazy now, but wasn't former minister of defense Tvrdik the CEO of CSA just a few years ago? I am not sure that's what I would call "keeping politics out of airline management".

Anyway, I agree that right now is probably not the best time to be selling an airline and the government should wait until the clouds clear up a bit. I like CSA and would like to see it thrive.


I disagree. Absent a proper longhaul fleet, it is pointless to run the 310 just for essentially one route that goes straight to the hub of an alliance partner. The Airbuses are a lot more fuel-efficient than the 734s, other costs have been trimmed/revenue opportunities raised (I mean, who would choose to fly CSA for the extra 3kgs of baggage allowance they used to give?), labour costs are lower than most competitors', and the focus on N. East/C. Asia is sure to pay off when the global economy (and oil price!) rebounds.

The Czech government has done a pretty good job of keeping politics out of airline management, and that is reflected in the decent financial results obtained.

The best solution would be if they realised that OK can't be sold easily right now, and decided to keep the airline in state ownership and invest a bit more money in it (but, again, I am not sure about a longhaul operation- maybe try and get CZ to fly to PRG? I've seen quite a few KE pax connecting to/from my flights on CSA).

My memory is a little hazy now, but wasn't former minister of defense Tvrdik the CEO of CSA just a few years ago?


This is correct.

I am not sure that's what I would call "keeping politics out of airline management".

No matter which people were put in charge of CSA, the various Czech governments didn't meddle with the actual running of the airline. See OA for an example of what they could have done!!

Does this mean it goes to the other bidder There were only 2 if I remember correctly: Travel Services/Icelandair...

Does this mean it goes to the other bidder There were only 2 if I remember correctly: Travel Services/Icelandair...

The auction process hasn't been finalised yet. Personally, I'd be very surprised if they do pick Travel Services (see their grand attempt at a LCC that goes by the name of SillySmartWings)

Indeed we (OK+ members) seem to have escaped the gaping jaws of the FD programme The Flying Dutchman programme, KL's FFP prior to AF's takeover, was a very good programme. Presumably your mean FB rather than FD? ;)

The Flying Dutchman programme, KL's FFP prior to AF's takeover, was a very good programme. Presumably your mean FB rather than FD? ;)

Yes indeed, things collapsed when they were taken over by AF and the programmes were merged. FD was better than FB - but still OK is better than even FD. So let's keep our fingers crossed.

YAY!! thank you for the bright news

PRAGUE (Dow Jones)--A consortium of Czech and Icelandic investors Wednesday placed an official bid for Czech flag carrier CSA Czech Airlines, a spokeswoman for the consortium said.

The consortium is comprised of Czech financial firm Unimex and charter airline Travel Service, and is the sole bidder in the tender. Icelandic airline Icelandair Group Holding (ICEAIR.RK) is a shareholder in Travel Service.

"Before 12 noon the consortium submitted its offer to the Finance Ministry," said Travel Service spokeswoman Vladka Dufkova, adding that the consortium would release additional details at 1400 GMT.

The Czech Finance Ministry is expected to issue its own statement on the bid at 1300 GMT Wednesday.

The government earlier this year said it hoped to generate about $270 million in a public tender by selling its 91.5% stake in Czech Airlines, which is a member of the Air France-KLM-led (AF.FR) Sky Team alliance.

CSA reported a $100 million net loss in the first half of the year and said it would sell jets, cut staff and reduce routes to try and return the airline to profit in 2010.

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLU14492120090930

PRAGUE, Sept 30 (Reuters) - The lone bidder for loss-making Czech Airlines offered 1 billion crowns ($58.3 million) for the state carrier on Wednesday, but attached strings that may make the deal unacceptable for the government.

Unacceptable works for me. Hopefully the Czech government scraps the sale, OK is projecting a 2010 profit so it makes sense to wait from that prospective. I may be looking out for my OK Plus but it is a bad deal all around.