Korean Air eyes stake in ailing Czech Airlines

KOREAN Air yesterday made an official bid for a 44 per cent stake in the wholly government-owned Czech Airlines (CSA).

Czech daily DNES reported that the Asian carrier intends to acquire a 44 per cent stake for “a few million dollars”. Ernst & Young auditors have estimated the stake to be worth 148 million koruna (US$7.5 million).

The same paper said that Qatar Airways had previously expressed interest in the stake, but would not take part in the bidding.

The Czech Republic has offered 96 per cent of its troubled flagship carrier to European investors, but non-European companies are only allowed to own minority stakes in strategic companies as per European Union regulations, stated AFP.

 In 2011, CSA recorded a loss of 241 million koruna.

Sourced: ttgasia