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CSA to Reopen Talks on TakeoverJune 14, 2006 By: Susan Young Travel Agent
State-run Czech Airlines (CSA) will reopen talks on a takeover of rival Travel Service (a large charter operator) within a month, CSA president Radomir Lasak told the Czech News Agency on Tuesday. He said that CSA was thinking of both buying Travel Service and selling its own charter fleet. Previous talks on a takeover had failed, but the Czech antitrust office has already approved the merger should new talks result in an agreement. Lasak said the Czech market for charter flights is small and consolidation is needed. CSA reportedly has about 38 percent of the market and Travel Service about 57 percent. Lasak also told Czech news sources that CSA has its eye on lucrative long-term contracts that Travel Service has with several major travel agencies, including Cedok and Firo-Tour. But Roman Vik, the Travel Service chief executive officer, told news sources his company was only ready to discuss certain aspects of what Lasak is proposing.