TANS
Topic Author
Posts: 83
Joined: Sun May 15, 2005 10:46 pm

Icelandair To Buy Czech Travel Service

Fri May 11, 2007 10:28 pm

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]
 
VivaGunners
Posts: 336
Joined: Mon Oct 23, 2000 5:22 am

RE: Icelandair To Buy Czech Travel Service

Fri May 11, 2007 11:44 pm

Well, if confirmed, this would be a good move by Icelandair IMHO.
I see a lot of potential in Czech Rep. aviation for the coming years. As a matter of facts Travel Service have been growing nicely in the last years, they just ordered new planes, including a single B787-8.
Fleet commonality is also good, given both Icelandair and Travel Service have standing orders for 737s and 787s.
Best luck to all!
Any ideas for a signature?
 
TANS
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Posts: 83
Joined: Sun May 15, 2005 10:46 pm

RE: Icelandair To Buy Czech Travel Service

Fri May 11, 2007 11:54 pm

Here is the official Press release from Icelandair:

http://www.icelandairgroup.com/home/...eleases/detail/store34/item127532/
 
Humberside
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Joined: Sun Jan 01, 2006 12:44 am

RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 2:36 am

I guess Icelandair are particularly interested in the leasing operations, which should complement Lofledair (spelling?) and Latcharter well
Visit the Air Humberside Website and Forum
 
TANS
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Posts: 83
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RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 4:54 am

An interesting fact, which people have been talking about here in Prague, is that Icelandair is also a major stockholder in EasyJet.

Since Travel Service is being sold along with its daughter Smart Wings, which tries (or has tried) to compete with EasyJet on a few routes, the rumours are that the only Czech low-cost will be axed completely and all the routes will be taken over by the orange airline.

This would seem as quite a logical step since Smart Wings have earned themselves a terrible reputation over the past few years, while the British airline has quite a good name in this country. The future of Smart Wings was apparently discussed at an in-house meeting of the management and employees at Travel Service today.
 
BOSSAN
Posts: 175
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RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 7:21 am

I guess Icelandair is making a strategic acquisition to get Travel Service's valuable 787 delivery slot! (Yes, slot.)
 
Humberside
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RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 7:20 pm

Quoting TANS (Reply 4):
An interesting fact, which people have been talking about here in Prague, is that Icelandair is also a major stockholder in EasyJet.

Was a major shareholder. Think that stake has now been sold, and if it has been retained will be owned by FL Group, now a separate business to Icelandair Group
Visit the Air Humberside Website and Forum
 
TANS
Topic Author
Posts: 83
Joined: Sun May 15, 2005 10:46 pm

RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 11:44 pm

Quoting Humberside (Reply 6):
Was a major shareholder.

Yes, you are absolutely right. Sorry for the wrong info.

FL Group sold EasyJet in April 2006 for €325m and Icelandair Group was sold by the company in October of the same year. Wrong gossip I guess  Smile
 
B747-437B
Posts: 8777
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RE: Icelandair To Buy Czech Travel Service

Sat May 12, 2007 11:57 pm

Quoting Humberside (Reply 3):
I guess Icelandair are particularly interested in the leasing operations, which should complement Lofledair (spelling?) and Latcharter well

The biggest problem that the Icelandair group has with their ACMI operations is the high labour cost in Iceland and the very strong labour unions that represent their pilots, engineers and cabin crew. Loftleiðir's importance within the group has also grown, especially since Sigþór Einarsson took over as COO and has huge influence in the company's strategic direction. Loftleiðir however is constrained by the union contracts since it runs under the Icelandair AOC and is hence subject to union workrules. Acquisitions such as LatCharter and now Travel Service gives them a wider spread of ability to offer different sized aircraft and ACMI solutions on both short and long term basis, while maintaining their high product standard - namely JAR-OPS compliant out-of-the-box solutions.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada

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