Korean Air and Czech Airlines have formalised Korean Air’s acquisition of 44 per cent of the Czech airline at a signing ceremony in Prague.
By acquiring the stake, Korean Air becomes the airline’s second largest shareholder.
Korean Air chairman Yang Ho Cho expressed his support of the transaction by saying “We have known Czech Airlines for a lot of years, by which we’ve got both been component of the SkyTeam alliance.
“Our successful codeshare collaboration only confirms that our decision to become a strategic partner of the Czech national carrier, culminating in our signing of the contract, is the suitable decision.”
Founded in 1923, Czech Airlines operates 24 aircraft to 44 cities in 24 countries and is a member of the SkyTeam alliance, of which Korean Air is a founding member.
The acquisition of Czech Airline’s stake is an historic moment for the Korean aviation industry because it is the primary time that a Korean airline has taken a stake in a foreign airline.
The overseas expansion in electronics and automobiles have been prominent, but this marks the primary within the Korean aviation industry.
Korean Air passengers would be in a position to enjoy a greater diversity of European routes due to this acquisition.
Passengers flying to European cities reminiscent of Berlin, Barcelona, Copenhagen, Milan, Brussels, Budapest and Warsaw can easily transfer through Prague’s airport.
With its perfect location, Prague offers connections to those cities in lower than two hours.
Korean Air plans to expand its network through Prague airport by increasing its code share flights and improving its connection schedules with Czech Airlines.
Also, to assist Czech Airlines operate direct flights between Prague and Incheon, Korean Air will lease the Czech carrier considered one of its A330-300s.
Czech Airlines plans to function direct flights between Prague and Incheon twice per week – providing their customers a much broader number of schedule.