Czech sells off Prague terminal

Based on the results of an analysis of side businesses, Czech Airlines has decided to sell its catering operation and cargo terminal at Prague Ruzyne airport. The company is going to hold on to the duty free shops and onboard sales.

Czech Airlines has completed the first stage of an analysis of possible divestments. Its objective was to assess individual side business lines to see how they fitted into the company’s main line of business - regular air transport. ?SA’s full focus on the main line is a part of the strategy that ?SA has adopted and, is at the same time, the basic prerequisite of achieving competitiveness and returning to a profit situation. Based on a financial analysis, ?SA management has decided to initiate the sale of the catering and cargo terminal.

The existing ?SA catering will be sold as a unit; the cargo operation divestment will be divided into two parts. The cargo terminal will be offered for sale by ?SA but the company will retain cargo transport aboard ?SA aircraft. By its character of additional aircraft balancing, cargo transport is closely connected with the main business line. However, the terminal as such can be operated by another owner without any major affect on ?SA.

In both cases a contract with the new acquirer to provide services for ?SA will form a part of the sale. ?SA contacted prospective investors today by sending out basic information about the investment opportunity that the sale of the ?SA catering operation presents. Prospective investors in the cargo terminal will be contacted in October. 

?SA, however, is holding on to duty free. The sale of this would not bring any significant economic effect because of the restricted lease term of the venues where the shops are located in the airport. It is more advantageous for ?SA to hold on to this profitable activity.

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?SA is preparing the sale of the catering and cargo terminal in co-operation with an investment advisor, CA IB Corporate Finance, a.s., and the Pokorný, Wagner & spol. law firm is providing legal advice for the project. “The basic decision-making criteria for the sale will be the price and the best agreement on providing cooperation and services for Czech Airlines,” said ?SA President, Radom’r La?ák.
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