According to the Czech aviation website planes.cz and the daily Pravo, IcelandAir Group has published a letter of intent to buy the Czech charter airline Travel Service and its daughter, "low-cost" SmartWings.
If the due diligence, which will take place in the next few weeks is successful, a contract should be signed in June of this year. Icelandair will therefore acquire 50% of Travel Service, while the resting 50% will be bought in 2008.
According to the director of Icelandair, Jón Karl Ólafsson, the current Czech management will continue to work at the company. Travel Service has declined to comment and will issue a statement on Monday.
Last year Travel Service carried about 1.8 million passengers and is the largest charter airline in the Czech Republic. Its Boeings 737-500 and 737-800 are also often leased to foreign carriers (eg. Pluna or Malaysia Airlines).
[Edited 2007-05-11 15:40:29]
[Edited 2007-05-11 15:40:49]