Prague airport shifts focus as Czech Airlines faces bankruptcy

Prague’s Václav Havel Airport has undergone a significant transformation following the bankruptcy and decline of its once-dominant domestic carrier, Czech Airlines (ČSA). Once a key player in the airport’s operations, providing numerous transfer connections across Europe, ČSA’s diminishing presence has forced the airport to rethink its strategy, now focusing on attracting passengers within a two-hour travel radius.

According to Jiří Vyskoč, director of air commerce development at Prague Airport, the airport has seen a dramatic shift over the past 15 years. “In 2008, ČSA controlled 43% of the airport’s market share. Today, that figure has plummeted to less than 1%,” Vyskoč told the Czech News Agency. This drop, he explained, has been compounded by the airline’s first major cuts in 2012 due to poor financial results, and later by the COVID-19 pandemic, which devastated the global aviation industry. As a result, the airport has had to rely on other airlines to fill the void left by ČSA, particularly for long-haul connections.

On Saturday, October 26, ČSA will operate its final commercial flight under its iconic “OK” flight code, marking the end of an era for the airline. From Sunday, October 27, all ČSA flights will transition to the “QS” code of Smartwings, its new parent company. Despite retaining its historic brand colors and logo, ČSA will no longer function as an independent carrier. Smartwings, which took over the majority of ČSA in a recent restructuring, will provide all operational services for the fleet.

Marketing experts fear this transition could diminish the value of the ČSA brand. “The ČSA brand holds great historical significance, but this change in the business model could be seen as the end of an era, potentially lowering the brand’s value,” commented Rozálie Kloučková of AMI Communications. The sentiment was echoed by Josef Trejbal, director of ticket sales platform Letuška.cz, who remarked that ČSA’s ambitious expansion, particularly during the leadership of Jaroslav Tvrdík, ultimately contributed to its downfall. “The final blow to ČSA came during the COVID period when the airline received no compensation for canceled flights,” Trejbal noted, adding that countries that supported their national carriers during the pandemic are now reaping the benefits.

Czech Airlines, founded in 1923 as Czechoslovak State Airlines, is one of the world’s oldest carriers. However, despite its rich history, the airline has been unable to recover from years of financial turbulence and the challenges brought by the pandemic. In May 2024, ČSA announced its transition to the Smartwings Group, effectively ending its century-long independent operations.

Source: CTK