New CSA CEO supports delay in privatisation to allow partnership discussions

Published: 9/3/1999

Czech Airlines (CSA,) have appointed the company's Technical Director, Miroslav Kula, as its new Chief Executive, with effect from 1st September 1999. Kula was also named Vice-Chairman of the board, replacing Finance Director, Frantisek Slaby. Kula supports the Czech Ministry of Transport's plan to postpone any decision to privatise the airline until 2001, despite CSA having been recently in a list of 12 companies approved by the Czech privatisation body, the National Property Fund, to be sold off as quickly as possible. He stated that: "The future of the company greatly depends on its position in a possible airline alliance. We do not want to let a privatisation plan force us to enter a partnership before we are ready to do so." He added, however, that if a non-controlling partner could be found, earlier privatisation might be possible. In 1992,CSA was partially sold to Air France and the European Bank for Reconstruction and Development (EBRD) but, after 1.5 billion Czech korunas in losses in 1993, the partnership broke up and the state bought the stakes back. Czech Deputy Transport Minister, Vladimir Sokolik, confirmed that a law requiring the airline be at least 51% domestically owned is being reviewed. He said that: "Regardless of whether or not we decide to allow the presence of a foreign majority shareholder in Czech Air, the cabinet will always reserve the right, in some way, to influence the direction of the carrier." In 1998, CSA reported profits of 414m korunas.

Article ID: 825