AF-KLM pulls out of CSA buy out
31 / 08 / 2009
AIR France-KLM has pulled out of talks to take over Czech Airlines (CSA). The ailing state-owned carrier is up for privatisation and AF-KLM’s withdrawal from talks leaves only one bidder – a consortium made up of Travel Service and Unimex.
AF-KLM said: “The current economic environment has significantly impacted the airline business. Under such circumstances, Air France-KLM believes that CSA might focus on developing and implementing a stand-alone recovery plan aimed at restoring its profitability.”
In response, a spokeswoman for CSA, Hana Hejsková, said: “Czech Airlines understands and respects the reasons underlying Air France-KLM’s decision. For [us] – as for other airlines – the only priority for 2009 is to flexibly respond to the market crisis. [We] share the opinion of Air France-KLM that Czech Airlines can restore its profitability without outside assistance.”
CSA lost K?1.32 billion (US$71.4 million) in the first quarter, down from the K? 844 million ($47 million) loss the year before. The airline has vowed to make a profit in 2010.
