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Czech airline brand From Wikipedia, the free encyclopedia
Czech Airlines (abbreviation: ČSA, Czech: České aerolinie, a.s.) is a Czech aviation brand and privately held holding company. Between 1923 and 2024, it operated as an independent airline and served as the flag carrier of the Czech Republic. Czech Airlines ended its own flight operations on 26 October 2024, handing them over to Smartwings while being repurposed into a holding company.[5]
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| Founded | 6 October 1923 | ||||||
|---|---|---|---|---|---|---|---|
| Commenced operations | 29 October 1923 | ||||||
| Ceased operations | 26 October 2024 (own flights) 101 years | ||||||
| Hubs | Václav Havel Airport Prague | ||||||
| Alliance | SkyTeam (2001–2024)[1] | ||||||
| Subsidiaries | Smartwings[2] | ||||||
| Fleet size | 3<[citation needed] | ||||||
| Headquarters | Prague, Czech Republic | ||||||
| Revenue |  CZK 9.5 bn (2014)[3] | ||||||
| Operating income |  CZK 285 m (2016)[3] | ||||||
| Total assets | CZK 2.2 bn (2014)[3] | ||||||
| Total equity | CZK (0.3) bn (2014)[4] | ||||||
| Employees | 587 | ||||||
| Website | www | ||||||
ČSA is the fifth oldest airline in the world, after Dutch KLM (1919), Colombian Avianca (1919), Australian Qantas (1920), and Soviet/Russian Aeroflot (1923). It was the first airline in the world to fly regular jet-only routes (between Prague and Moscow).[6] The airline ran a frequent flyer programme called "OK Plus" about the airline's International Air Transport Association designation, as well as the term of approval; OK also featured prominently in its previous livery, and was the prefix of Czech aircraft registrations. It was a member of the SkyTeam alliance. Its hub was Václav Havel Airport Prague.
When, in 2018, 97.74% of Czech Airlines was bought by the privately owned[7] Smartwings, ČSA became a part of the Smartwings Group. The remaining 2.26% of ČSA was owned by insurance company Česká Pojišťovna.[8] ČSA filed for bankruptcy in March 2021 and went through an extensive business restructuring, exiting in June 2022.[9][10] As of 2022, ČSA was under a new ownership structure with a new parent company called Prague City Air s.r.o. owning 70% of the company, with Smartwings retaining the remaining 30%.
On 26 October 2024, Czech Airlines became the parent (holding) company of Smartwings. As part of this transition, Smartwings took over the operational management of flights previously operated by Czech Airlines.[11] The last scheduled flight of Czech Airlines was flight OK767 from Paris Charles de Gaulle Airport to Václav Havel Airport Prague, operated by an Airbus A320-214 registered OK-IOO. Following the flight's departure, "Featured flight alert" notifications were sent out to users of the ADS-B flight tracker Flightradar24 application for flight OK767, the last flight of Czech Airlines.[12] As of 2024, 2 aircraft fly under the Czech Airlines brand.
ČSA was founded on 6 October 1923 by the Czechoslovak government as ČSA Československé státní aerolinie (Czechoslovak State Airlines).[13] Twenty-three days later, its first transport flight took place, flying between Prague and Bratislava. It only operated domestic services until its first international flight from Prague to Bratislava and on to Zagreb in Yugoslavia in 1930. After the dismemberment of Czechoslovakia in 1939 and splitting the country into three parts, the airline was dissolved.
Following a coup in February 1948, the Czechoslovak Communist Party suspended some of ČSA's western European and Middle Eastern routes and also gradually replaced much of the fleet with Soviet-built airliners, due to the embargo imposed by the West on the western-built aircraft spares and other equipment. The Ilyushin Il-14 was updated and built under licence in Czechoslovakia as the Avia-14.
In 1950, ČSA became the world's first victim of a mass hijacking. Three Czechoslovak Douglas DC-3 airliners flown to an American air base in Erding, near Munich, stirred the world on both sides of the "burnt through" Iron Curtain and the case intensified the Cold War between East and West overnight. On the morning of 24 March, the three aircraft landed near Munich instead of at Prague; the first from Brno, at 08:20, the second from Moravská Ostrava at 08:40, and the third from Bratislava at 09:20. Two-thirds of the people on board were unwilling participants and later returned to Czechoslovakia. The Czechoslovak Communist government commissioned a 'flight to freedom' book, stage play, and film (all bearing the name Kidnap to Erding) which celebrated the kidnapped returnees as heroes who had not allowed themselves to be swayed by promises of capitalist opulence. Those who remained and requested political asylum in West Germany were proclaimed criminals for whom the Prague government vigorously requested extradition – in vain. The pilot from Brno was Josef Klesnil,[14] a former Royal Air Force pilot with 311 squadron, who flew from Brno to Erding with a pistol pointed at his head.[14]
In 1957, ČSA became the third airline to fly jet services, taking delivery of and putting into service the very first Tupolev Tu-104A that year. ČSA was the only airline other than Aeroflot to operate the Tu-104. The Tu-104A service that began in 1957 between Prague and Moscow was the first jet-only connection (other airlines used both jets and piston/turboprop aircraft).[6] The airline's first transatlantic services started on 3 February 1962 with a flight to Havana[15] using a Bristol Britannia turboprop leased from Cubana de Aviación. ČSA's transatlantic flights were code-shared with Cubana's services to Prague, and Cubana's crews provided initial training and assistance in the operation of the Britannia.
From the late 1960s, ČSA used a range of Soviet-built aircraft and modified versions for its extensive European and intercontinental services, totalling some 50 international and 15 domestic destinations. The Britannia was replaced with long-range Ilyushin Il-18D turboprops at this time, and transatlantic routes were established to Montreal and New York City in addition to Havana. Along with the Il-18D, aircraft in ČSA's fleet included the short-range Tupolev Tu-134, medium-range Tupolev Tu-154, and long-range Ilyushin Il-62. As with several other airlines, the Il-62 was the first long-range jet airliner to be put into operation by ČSA (also the first foreign customer to buy Il-62s from the USSR). ČSA operated a fleet of 21 Il-62s between 1969 and 1997, including six Il-62Ms. A ČSA-registered Il-62 and three Il-62Ms were used as official Czechoslovak and Czech government transports between 1974 and 1996.[16]
After absorbing the "heavier" part of Slov-Air and taking its Let L-410A Turbolet turboprop commuters into its fleet in the early 1970s, ČSA partner airliner Slov-Air became the world's first to have a captain, Ján Mičica, slain at the controls by a hijacker, during a hijacking to West Germany. The aircraft involved, OK-ADN, is currently displayed in an open-air aircraft museum in Martin, Slovakia.[17]
On 1 January 1991, Czechoslovakian Airlines split into two companies: Czechoslovakian Airlines, which would become Czech Airlines, and Slov Air, which had previously been a subsidiary of the original Czechoslovakian Airlines. The division of Czechoslovakian Airlines ownership in 1991 between the governing bodies of the Czech and Slovak parts of Czechoslovakia had no connection to the split of Czechoslovakia two years later, in January 1993.
The post-split Czechoslovakian Airlines became privatized in 1992. Air France and the European Bank for Reconstruction and Development owned 19.1% of shares of the new company, while the Fund of National Ownership of the Czech Republic owned 49.3%. Czech Insurance Company owned 4.5%, the city of Prague owned 3.5%, and the last 2.3% was split evenly between three Slovakian cities: Bratislava, Kosice, and Poprad. [18] [19]
After the breakup of the Czechoslovak Federation, the airline in May 1995 adopted its present name. By the late 1990s, most of its Soviet aircraft had either been sold to other airlines or retired (a number were preserved), replaced with Western models such as the Boeing 737, Airbus A310 and Airbus A320. ČSA became a full member of the SkyTeam alliance on 18 October 2000. As of March 2007, the airline, with 5,440 employees, was owned by the Czech Ministry of Finance (56.92%), the Czech Consolidation Agency (34.59%), and other Czech institutions.
On 1 January 2010, the whole non-office ground staff of ČSA was transferred to the ČSA Support subsidiary, now named Czech Airlines Handling S.R.O. In February 2010, ČSA sold off its duty-free shops to another entity.[15]
EU competition regulators began an investigation into Czech Airlines on 23 February 2011, stating that it doubted the loss-making concern could return to viability and comply with European Union state aid regulations.[20]
In late 2012, ČSA Czech Airlines announced expansion plans and the resumption of long-haul flights in summer 2013 with Airbus A330 aircraft between Prague and Seoul.[21] Starting in March 2013, it operated direct flights from Prague to Perm, Nice, Munich, Zurich, Seoul, and Florence.[22]
After stock sales to Korean Air on 10 April 2013, ČSA Czech Airlines was owned by Czech Aeroholdings a.s. (56%) and Korean Air Lines Co., Ltd. (44%). On May 14, 2013, Czech Airlines Extraordinary General shareholders' meeting elected Cho Won-tae as a new member of its supervisory board. Cho replaced Petr Matousek, who resigned from his position on the supervisory board. This personnel change took effect on 1 June 2013 as a result of Korean Air's equity purchase.
In April 2015, Travel Service Group bought 34% of the airline, over which Korean Air had an option.[23][24] In 2016, the airline returned to profit for the first time in several years.[25]
On 6 October 2017, Korean Air announced the sale of its 44 percent stake in Czech Airlines, which it had held for four years, to Travel Service. Travel Service by then owned 78.9 percent of ČSA.[26] Czech state company Prisko owned 20 percent of ČSA.[26] Travel Service later also acquired Prisko's stake, increasing its stake to 97.74%.[27]
In 2014, the airline sold its Airbus 320s, as it had become unprofitable to fly them due to low load factor and high maintenance costs. In the summer of 2015, the fleet consisted of seventeen planes: seven Turboprops, nine Airbus A319s, and one long-haul Airbus A330 that was leased to the airline by Korean Air. [28]
In 2016, the airline transported 2.26 million passengers, a 13% increase from 2015.[29] The average load factor increased from 10% to 75%, and the total number of flights increased by 9%. In the same year, the airline ordered six A320 Neo models, which was later reduced to three in 2019,[30] and then converted into three orders for the Airbus A321XLR model instead at the beginning of 2020, with plans to launch North American Routes. Manufacturer Airbus planned to deliver the planes in 2023 and 2024. However, the airline cancelled the order due to the COVID-19 pandemic.
The airline operated a fleet of eighteen planes over the summer of 2017 to a total of fifty different destinations, including twenty-five distinct European and Asian countries, the most extensive coverage since the global financial crisis.
From the fall of 2018 through the winter of 2019, Smartwings Group management eliminated many airline routes, including the Prague-Bratislava and Prague-Ostrava routes that the airline has been flying since its inception. Soon after, profitable routes into select Russian cities were eliminated and immediately replaced by new routes operated by Smartwings. [31]
Under the leadership of the Smartwings Group, the Czech Airline's fleet was planned to be transformed into a fully integrated Boeing 737 fleet, the same model that the Smartwings fleet used. [32] However, due to technical and safety issues in the Boeing 737 Max model found in early 2019, management decided that Czech Airlines would operate the ongoing Airbus Fleet while Smartwings would operate a Boeing fleet. In April 2019, the fleet experienced a reduction of three out of the four operating Airbus 319s. However, one of these was later reintroduced.[33]
In March 2019, Smartwings announced that ČSA would undergo a fleet transition, with the Airbus A319 and ATR 72 to be retired.[34] In the wake of the COVID-19 pandemic, Czech Airlines announced in April 2020 the end of its already suspended sole long-haul route to Seoul.[35] Thus its sole Airbus A330 was to be returned to lessor Korean Air by October 2020.[36][37]
Towards the end of January 2020, the airline announced a plan to expand and modernize the fleet, with the planned addition of four new Airbus A320s. However, due to the COVID-19 pandemic, these plans were abandoned. In the early stages of the pandemic, the company's workforce declined from 700 to 300 employees,[38] and by the end of the year, the active fleet declined from five planes to two, both of which were under lease, flying to only five European destinations.
During the COVID-19 pandemic, ČSA fell into insolvency, applying for a moratorium in August 2020.[39] In February 2021, a maintenance provider ordered the seizure of two Czech Airlines' ATR 72-500 in Prague over unpaid debts. Before the incident, near the end of the moratorium, majority owner Smartwings announced that Czech Airlines faced insolvency should it not receive state financial aid,[40] but the aid raised controversy.[41] That same month, the airline notified the Czech Employment Office that it might lay off its entire workforce of some 430 people. In March 2021, it added that it had no means to meet its financial obligations and filed for bankruptcy.[42]
In March 2021, ČSA announced the immediate retirement of all ATR 72-500 aircraft, considerably shrinking its remaining fleet.[43] At the end of August 2021, ČSA was operating just one Airbus A320 aircraft; the second was inoperable.[44] As of summer 2022, Czech Airlines had reduced its network to just three scheduled routes.[45] In 2023, the only route operated by Czech Airlines was from Prague-Paris.[46]
In June 2022, ČSA exited business restructuring under a new ownership structure. Prague City Air, founded under the aid of Smartwings shareholders Jiří Šimáně and Roman Vik, was created to own 70% of ČSA while current majority shareholder Smartwings retained 30%.[10] As of late 2022, the airline also planned to rebuild its fleet and route network using Airbus A320 and newly acquired Airbus A220 aircraft.[citation needed] On 20 February 2024, Prague City Air s.r.o. purchased 49.92% shares in Smartwings a.s. from Rainbow Wisdom Investment Limited. Smartwings spokeswoman Vladimíra Dufková announced that the Czech shareholders now own 100% of the shares in both Smartwings and CSA Czech Airlines.[47]
In October 2024, Czech Airlines was restructured into a holding company, with Smartwings taking over all flight operations under both brand names.[48] The Czech Airlines brand remains active, with two Airbus A320 aircraft in its livery currently in operation. Additionally, four Airbus A220 aircraft in Czech Airlines colors are scheduled for delivery in the upcoming months.[11]
On October 26, the last flight of ČSA took place, as it took off in the evening from Charles de Gaulle Airport in Paris to Prague Václav Havel Airport. This was the last flight under what has become to be known as its iconic "OK" flight call.[49]
In 2016, Czech Airlines head office moved to Evropská Street in 6th district, Prague, Vokovice district[50] to lower overhead.[51] Czech Airlines formerly had its head office, the APC Building,[52] on the grounds of Václav Havel Airport Prague in Ruzyně, 6th district, Prague.[53] On 30 December 2009, ČSA announced it would sell its head office to the airport for CZK 607 million.[54] Before the insolvency application, in February 2021, Czech Airlines moved its headquarters to the Smartwings building at Prague airport.
Since its transformation to a joint-stock company in August 1992, ČSA has never paid dividends. The sale of a minority share to Air France was a fiasco, and the French airline withdrew. Subsequently, Antonín Jakubše and Miroslav Kůla stabilized the company and enlarged its fleet.[59] In September 2003, Miroslav Kůla was fired. New CEO and ex-minister Jaroslav Tvrdík agreed with the unions to increase wages by a third and announced an "unprecedented" enlargement of the fleet.[60][61]
In 2005, the financial situation sharply deteriorated. Although the sale of two ATR aircraft improved operating results by CZK 198 million, the operating loss was almost half a billion Czech crowns and the Government of Jiří Paroubek replaced Jaroslav Tvrdík with Radomír Lašák. The airline generated further operating losses, despite revenues of CZK 2.1 bn from the sale of almost all real estate and CZK 1.2 bn from aircraft sales. In 2005–2010, ČSA generated an operating loss of CZK 3.4 bn; without long-term asset sale revenues, the operating loss would have been twice as large. The gross margin did not even cover personnel expenses.[62]
In 2016, the airline handled 2.7 million passengers and announced a net profit of 241 million crowns.[63]
| billion CZK | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2005–14 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 21.5 | 24.0 | 24.0 | 23.2 | 20.4 | 16.9 | 14.8 | 13.7 | 10.2 | 9.5 | 178.2 |
| Cost of sales | (18.3) | (18.6) | (18.7) | (18.7) | (18.1) | (14.3) | (12.8) | (12.1) | (10.0) | (8.8) | (150.4) |
| Gross margin | 3.2 | 5.4 | 5.4 | 4.5 | 2.2 | 2.6 | 2.1 | 1.5 | 0.2 | 0.7 | 27.8 |
| Personnel cost | (4.1) | (4.5) | (4.8) | (4.8) | (4.9) | (3.9) | (3.3) | (1.5) | (1.3) | (1.2) | (34.3) |
| Disposals of LT assets | 0.2 | 0.2 | 0.6 | 1.4 | 0.4 | 0.8 | 0.3 | (0.2) | 0.1 | 0.0 | 3.8 |
| Reserves | 0.3 | (0.5) | (0,1) | 0.3 | (0.6) | 0.5 | 0.1 | 1.1 | 0.2 | (0.1) | 1.1 |
| Other (depreciation etc.) | (0.0) | (0.8) | (0.7) | (0.6) | (0.7) | (0.3) | (0.4) | (0.1) | (0.1) | (0.0) | (3.7) |
| Operating profit | (0.5) | (0.2) | 0.5 | 0.7 | (3.5) | (0.3) | (1.1) | 0.8 | (1.0) | (0.6) | (5.4) |
A new look for Czech Airlines was revealed in September 2007. The new logo was created by Michal Kotyza, who works for the airline.[64]
Czech Airlines offered buy on board service on some flights in addition to free service.[65][66]
The OK Plus frequent flyer programme gived passengers "OK Plus Miles" for flights with Czech Airlines, SkyTeam member airlines, other partner airlines or non-airline partners. OK Plus membership cards were available with the following tier levels: OK Plus membership, OK Plus Silver, OK Plus Gold, and OK Plus Platinum. The higher the card level, the greater the number of benefits passengers receive. CSA terminated its OK Plus program in October 2024, without implementing a replacement scheme.[67]
As of February 2021, Czech Airlines served four scheduled year-round and seasonal destinations including their home base at Václav Havel Airport Prague.[68] This figure was down from 33 routes in summer 2019.[69] Flights were operated mainly in Europe, with Beirut being the sole remaining Middle Eastern destination. ČSA offered more than 110 destinations and 45 countries from Prague, but none of the long-haul service via its codeshare partners.[70]
As of October 2024, routes to Paris and Madrid are operated by Smartwings under the Czech Airlines brand using two Airbus A320 aircraft in Czech Airlines livery.
In June 2007, ČSA signed a contract with Dxim Tours, the largest Czech travel agency, extending their contract for another three years. In May 2010, ČSA withdrew its last Airbus A310 used for these services.[citation needed]
Czech Airlines had codeshares with the following airlines:[71]
As of November 2024[update], the Czech Airlines-branded fleet consists of the following aircraft:[74]
| Aircraft | In service | Orders | Passengers[74] | Notes | ||
|---|---|---|---|---|---|---|
| B | E | Total | ||||
| Airbus A220-300 | 1 | 3 | – | 149 | 149[citation needed] | Operated by Smartwings[75] |
| Airbus A320-200 | 2 | — | — | 180 | 180 | Operated by Smartwings |
| Total | 3 | 3 | ||||
The entire fleet of Airbus aircraft with the Czech Airlines brand is operated by Smartwings, an airline owned by Czech Airlines.[76]
Czech or Czechoslovak Airlines operated these aircraft types in the past:[77][78][79]
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