Icelandair Buys Largest Private Czech Airline Skip to content

Icelandair Buys Largest Private Czech Airline

By Iceland Review

Icelandair Group has purchased the largest private airline in the Czech Republic, Travel Service, as announced yesterday. Icelandair will acquire 50 percent of the airline’s shares now and at least 30 percent next year.

According to a statement from Icelandair, the agreement states that the current owners of Travel Service will continue to hold one fifth of shares in the airline, reports.

Travel Service operates a charter aviation service, primarily from Prague and Budapest, and also operates the low-cost airline Smart Wings.

The total turnover of Travel Service in 2006 was about ISK 18 billion (USD 277 million, EUR 120 million). The airline operates 12 Boeing 737-800 and 737-500 passenger jets, transporting about 1.8 million passengers last year to destinations on four continents.

Icelandair’s estimated turnover in 2007, after the purchase of Travel Service, is ISK 72 billion (USD 1.1 billion, EUR 798 million), 30 percent higher than last year.

Icelandair would not reveal the price of the investment, but said it plans to finance it partially with loan capital but also with money from the airline’s own funds.

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