Air France KLM no longer interested in Czech Airlines

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Czech Airlines: Air France-KLM will be submitting a non binding Expression of Interest

The Ministry of Finance of the Czech Republic issued a call for tenders on 5 February 2009 for the purchase of its stake in Czech Airlines. As a result, Air France-KLM will be submitting today a non binding Expression of Interest in order to access the airline's data room.

The Ministry of Finance of the Czech Republic does not expect any binding offers before June, by which time the applicants will have carried out due diligence of Czech Airlines.

This process reflects the broader view of Air France-KLM on the air transport industry, as the Group has very often expressed its intention to take part in the necessary consolidation of the sector.

Czech Airlines is a close partner of Air France-KLM, particularly in the SkyTeam Alliance, of which it has been a member since 2001. Its network is highly complementary to that of Air France-KLM. Among other things, it would enable the Group to strengthen its position in Central and Eastern Europe.

Air France press release, Monday 23 March 2009

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AIR FRANCE KLM is very pleased to take part in the second round of CSA's privatization process

Air France-KLM is very pleased with the announcement made by the Czech Minister of Finance, Miroslav Kalousek, according to which the Air France KLM Group has been chosen to take part in the second round of the privatization process of the Czech airline, CSA.

Air France-KLM intends to continue to cooperate with the Czech Authorities concerned.

Czech Airlines is a close partner of Air France-KLM, particularly in the SkyTeam Alliance, of which it has been a member since 2001. Its network is highly complementary to that of Air France-KLM, and would notably enable the Group to strengthen its position in Central and Eastern Europe.

Air France press release, Monday 20 April 2009

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CSA Czech Airlines could have new owners by the end of September

CZECH REPUBLIC'S finance ministry has advanced to a second round of tendering for the sale of CSA Czech Airlines. Air France-KLM and a consortium comprising Czech Unimex Group and Travel Service remain in the bid. The ministry says that the winner should be known by the end of September at the latest. Up for grabs is a 91.5% stake.

CSA was profitable in 2008 and like AF is part of Skyteam. Bidders need to meet conditions such as keeping CSA's national identity status to prevent the airline losing any of its international routes outside Europe. Air France-KLM is expansion minded and would see an acquisition as outflanking Lufthansa. Aeroflot were eliminated at this round. British Airways seems to be less interested in mainland Europe than ever, with the exception of its North Atlantic Open Skies operation, and a proposed tie-up with Iberia.

Source: AERBT and http://www.praguepost.com

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Air France announced today that it will not participate in the privatisation process of CSA, due to the current crisis. It will however reinforce the cooperation with CSA within the Skyteam alliance.

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AIR FRANCE KLM withdraws as a participant from the tender for the privatization of Ceskéaerolinie a.s.(CSA)

AIR FRANCE KLM today informed the Czech Ministry of Finance of its decision to withdraw from the tender process for the privatization of Ceske aeroliniea.s. (CSA).

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 this context AIR FRANCE KLM wishes to further strengthen the existing partnership between the two groups and to continue to explore with CSA any new areas of cooperation that could be of mutual benefit to each company.

Air France press release, Wednesday 19 August 2009