Czech Ministry To Test Sale Of CSA Airline

February 6, 2012

The Czech Finance Ministry wants to open a tender for the sale of state carrier CSA Czech Airlines at the turn of the first and second quarters, weekly magazine Tyden reported, citing a ministry source.

The magazine said talks with Air France and Korean Air on a possible sale have already taken place.

It reported, citing a source who took part in the talks, that the ministry wants to test interest in the airline, which has struggled to recover from an ill-fated expansion in the middle of the last decade that stretched finances.

"We have to first find out what interest is and whether there are serious partners at all," the source was quoted as saying.

Prime Minister Petr Necas said in December he would recommend to the government in 2012 that it looks to sell CSA to a strategic partner.

The Finance Ministry said it was registering interest of two potential partners, but declined to give more details. "Finding a strategic partner is a preferred solution for CSA," ministry spokesman Ondrej Jakob said in an email.

A privatisation attempt two years ago failed.

The airline, part of the Skyteam alliance that includes Delta Air Lines and Air France-KLM, had an operating loss of 632 million crowns (USD$33.2 million) last year and was selling parts of its business to improve its cash flow.