Czech Airlines Fighting the Effects of the Global Crisis

Czech Airlines is successfully standing up to the worldwide crisis, which has, without
exception, affected all airlines. This is possible thanks to the comprehensive system of
measures adopted in the “Action Plan 2009”. These measures, the goal of which is to
increase revenue from regularly scheduled flights, lower manageable expenses, optimize
the flight schedule and efficiently utilize the fleet capacity, should bring more than one
billion CZK into this year’s business results.
“Taking into account the development of the situation in the field, we have revised the
company’s financial plan for this year as well as for the following year and have begun
implementing Action Plan 2009, with the goal of lessening the impact of the worldwide
crisis on Czech Airlines.” says Radom’r La?ák, explaining the steps management is taking. The
overall, pre-tax losses should not exceed 361 million CZK for this year, according to the plan. “We
are already counting on a profit of 157 million Czech Crowns in 2010, with the forecasted
growth of travellers on regular flights and keeping the same number of flights as this year”,
Radom’r La?ák adds.


Action Plan 2009: Revenue projects with a quick return
The first three projects with a quick return have already been successfully implemented and they
are now generating their first revenues. Their aim is to achieve additional revenue without
increasing fares. Travellers on all routes, with the exception of domestic ones, now have the
opportunity of purchasing additional drinks and snacks over and above the normal refreshments,
which will still be served free of charge. From March, Czech Airlines travellers can purchase travel
insurance together with their flight tickets at bargain prices from the reputable AIG Europe
Insurance Company. April saw the introduction of a new opportunity for travellers - they can now
purchase selected services at the check-in counters at Prague airport. They can, for example,
take advantage of an upgrade to a higher price category or use the VIP lounge. This can be done
because all Czech Airlines check-in counters at Prague airport now have payment terminals. This
makes it much easier for the airline to accept payment for excess baggage. Czech Airlines has
high hopes for the modern O&D pricing system. Czech Airlines would like to introduce a system,
which optimizes the price not only on individual transit routes, but according to the starting point
and final destination of the journey, during the course of this year. This year Czech Airlines are
anticipating that thanks to these projects, a total profit of 364 million Czech Crowns will be
achieved.

Click here for full action plan
——-