http://www.nasdaq.com/article/chineseba ... 1006-00386

PRAGUE, Oct 6 (Reuters) - Chinese-backed Czech airline operator Travel Service is set to take over national carrier Czech Airlines (CSA) with a deal to buy out Korean Airand possibly the government's stake, it said on Friday.

Travel Service, partly-owned by Chinese investment group CEFC and already owner of 34 percent of CSA, said it had agreed to buy both the state's 19.7 percent stake and Korean Air's 44 percent holding, confirming a report by news website zdopravy.cz.

- Will operate under 1 brand. Which one?
- Aim to grow combined fleet from 48 to 80. Current order of both airlines bring them to that? Will they shed the Airbus or Boeing fleets?
- PRG to become significant connecting hub in Central Europe

Will they go full LCC or continue to muddle through with the existing hybrid model?

filipair wrote:

- Will operate under 1 brand. Which one?

I am sure they will continue as two brands. They go for different market segments so combining the brands will make them loose an entire segment.

filipair wrote:

- Will operate under 1 brand. Which one?
- Aim to grow combined fleet from 48 to 80. Current order of both airlines bring them to that? Will they shed the Airbus or Boeing fleets?
- PRG to become significant connecting hub in Central Europe

Will they go full LCC or continue to muddle through with the existing hybrid model?

How strong is CSA's brand?

If they want to make a significant hub in Central Europe, can they really afford to be just LCC and let higher premium traffic go to OS in VIE for instance?

I think it would stupid to get rid of Czech Airlines.

Who knows about Travel Service or SmartWings outside CZ and surrounding areas?

They could always create a brand new brand or rename SmartWings something like Czech Smart or sth like that.

SCQ83 wrote:

I think it would stupid to get rid of Czech Airlines.

Who knows about Travel Service or SmartWings outside CZ and surrounding areas?

They could always create a brand new brand or rename SmartWings something like Czech Smart or sth like that.

..they could call it Price Czech!

My vote is for Czech's Mix Airline.

I'm curious what is going to happen with the A330 and the Seoul route

tommyarias wrote:

I am sure they will continue as two brands. They go for different market segments so combining the brands will make them loose an entire segment.

That's not what 50% owner Jiří Šimáně is saying...

The co-owner of Travel Service, Jiří Šimáně, had previously hinted that his company would be interested in absorbing the state carrier, saying that "our air transport market only has enough room for one Czech company". Travel Service's operations – through its ACMI/charter unit and its seat-only business smartwings – are almost twice the size of CSA's.

ch-aviation has learned that Travel Service intends to phase out its brand name, and will move all operations under the Smartwings (QS, Prague) virtual brand. Travel Service will remain as the holding company. Chinese investment group CEFC controls 49.9% of Travel Service.

Source: https://www.ch-aviation.com/portal/news/60187-czech-airlines-has-new-owner-as-travel-service-ups-stake

SCQ83 wrote:

I think it would stupid to get rid of Czech Airlines.

Well it looks like were consolidating! Kinda sad if true, given CSA's long history.

I guess it means good-bye for PRG-ICN on both OK and KE?

KIA has a large factory nearby and there are strong trade links between the Czech Republic and South Korea so I can see PRG to ICN remaining be it on the currently leased 330 or with KE.

The CSA brand will eventually disappear with the current SmartWings assuming the name of the combined airline.

This is a very sad news for OK, indeed. Travel Service can not (and doesn't have the skills/abilities to) operate anything like a scheduled network carrier, which could deliver a consistent, competitive product. It is also a big shame, especially on Korean Air, to make its 2013 'strategic investment' in the airline such an embarrassing and effortlessly cheap manueveur not seen in the industry for decades.

SpaceshipDC10 wrote:

filipair wrote:

- Will operate under 1 brand. Which one?
- Aim to grow combined fleet from 48 to 80. Current order of both airlines bring them to that? Will they shed the Airbus or Boeing fleets?
- PRG to become significant connecting hub in Central Europe

Will they go full LCC or continue to muddle through with the existing hybrid model?

How strong is CSA's brand?

If they want to make a significant hub in Central Europe, can they really afford to be just LCC and let higher premium traffic go to OS in VIE for instance?

Nobody in Czechia asked for my two cents but the Travel Service sounds like an anonymous, white label airline and their livery is rather clip art. Czech Airlines sounds like something real and a little more up-market (which may not be the combined carrier's goal) and their visual identity is a bit more smart and professional.

I hope they get rid of Travel Service and both become CSA Czech. Travel Service must be the blandest, less imaginative name in world airlines today. It's basically a descriptor, it's like calling your new airline, well... Air Line.

SpaceshipDC10 wrote:

filipair wrote:

- Will operate under 1 brand. Which one?
- Aim to grow combined fleet from 48 to 80. Current order of both airlines bring them to that? Will they shed the Airbus or Boeing fleets?
- PRG to become significant connecting hub in Central Europe

Will they go full LCC or continue to muddle through with the existing hybrid model?

How strong is CSA's brand?

If they want to make a significant hub in Central Europe, can they really afford to be just LCC and let higher premium traffic go to OS in VIE for instance?

Lots of competition for building hubs in Central Europe. You've got OS in VIE, LH in MUC, and LO in WAW, with the Polish gov't planning to building a new large airport that would help LO grow further. Can the region support another hub?

hoya wrote:

SpaceshipDC10 wrote:

filipair wrote:

- Will operate under 1 brand. Which one?
- Aim to grow combined fleet from 48 to 80. Current order of both airlines bring them to that? Will they shed the Airbus or Boeing fleets?
- PRG to become significant connecting hub in Central Europe

Will they go full LCC or continue to muddle through with the existing hybrid model?

How strong is CSA's brand?

If they want to make a significant hub in Central Europe, can they really afford to be just LCC and let higher premium traffic go to OS in VIE for instance?

Lots of competition for building hubs in Central Europe. You've got OS in VIE, LH in MUC, and LO in WAW, with the Polish gov't planning to building a new large airport that would help LO grow further. Can the region support another hub?

All of these are Star Alliance hubs. Having strong SkyTeam presence in the region could be significant. Also, PRG is expanding its capacity as we speak with new check-in islands being built (+ there is extra room to grow into even without a third runway), is likely more attractive to both Asian and North American tourists than WAW, for instance, and suffers from fewer weather- and ATC-related delays than other Western European hubs.

CSA is among world's oldest airlines and is quite well-known in Eastern Europe and parts of Asia. Less so in SE and East Asia or North America. I think TS would make a huge mistake to drop CSA's brand altogether, however (and as others have pointed out, its bland name and brand are not exciting either ...). At a time of fierce competition, I think they need to think twice about the hard+soft product they are offering (ranging from lounge expansion in PRG to new C, PE and Y seats, and much nicer crew + customer service).