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Korean Air buys 44% stake in Czech Airlines

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2013-04-12

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The standard was set last February when American Airlines and U.S. Airways announced they would join forces to become the world's biggest airline.
Analysts say this is how airline companies are surviving in these tough economic times.
Following the U.S. airlines' lead‚ Korean Air announced late Thursday‚ that it would buy a 44 percent stake in state-run Czech Airlines for 3.4 million U.S. dollars.
Korean Air President Cho Yang-ho and Czech Prime Minister Petr Necas attended a press conference in Prague on Thursday to announce the deal.
"Through the bilateral partnership between Korean Air and Czech Airlines‚ we will create strategic business opportunities and expand cultural exchanges and businesses."
Czech Airlines has a 90 year history and flies to more than 40 cities in Europe and the Middle East.
"Through this agreement‚ Czech Airlines will provide services not only in Europe but also to Asian customers."
Both carriers plan to expand code-share routes to 17 cities in Europe and expand routes to eastern and northern Europe.
The deal came about a week after Korean Air submitted a bid to buy the stake in the troubled air carrier.
Czech Airlines posted losses of 12.5 million U.S. dollars in 2011.
Ji Myung-kil‚ Arirang News. Reporter : mkji@arirang.co.kr

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https://www.kf.or.kr

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