Czech strategy boosts profits

The Czech Airlines’ regular General Meeting has approved the airline’s 2007 annual financial statement and Annual Report, which show that Czech Airlines generated an after tax profit of CZK 207 million in 2007.  The result is thus over 600 million crowns better than in 2006, in spite of the significantly greater financial demands on the Airline.  Shareholders also discussed the meeting of the OK 2006-2008 revitalisation strategy and approved the 2009-2013 development strategy.

Shareholders discussed and took note of the information provided by Czech Airlines’ management concerning the evaluation of the second year of the OK 2006-2008 Strategy, approved by them at their June 2006 meeting, as a three-year concept for the salvation, stabilisation, and development of the Airline.  The General Meeting noted that all of the Strategy’s key indicators for 2007 have been met.

The shareholders also approved the development strategy for 2009-2013, as a general framework for the airline’s business activities in 2009-2013; the Strategy is to achieve an increase in the value of Czech Airlines for shareholders, as well as potential strategic investors, and ensure that the previous years’ losses are gradually paid off.  The Strategy plans on further intensive growth and on affirming the airline’s position.  The goal is to be an internally effective airline that can make up to a five-percent margin on its revenue.

In terms of its operational results, Czech Airlines managed to improve by nearly CZK 900 million.  The Airline met its cost plan and exceeded the planned revenue targets, primarily in carriage.  The Airline was successfully made profitable in the second year of its 2006-2008 revitalisation strategy, generating a profit of CZK 207 million.  The plan for the 2006 and 2007 financial results has been met by 132%.
The Czech Airlines Supervisory Board, which met after the General Meeting, took note of the resignation of Ing. Tomá? Heczko from his post as a member of the Management Board, effective 30 June, and elected Ing. Roman Planička as a new member of the Management Board; as of 1 July, he will also assume the post of Vice-President for Technology.