CK
14-05-2007, 09:30
fra ATWonline.com
Other News
Monday May 14, 2007
Icelandair Group signed a letter of intent Friday to acquire Travel Service, the largest private airline in the Czech Republic and owner of LCC Smart Wings. Travel Service operates charter flights to and from Prague and Budapest in addition to Smart Wings. Its revenue in 2006, when it carried more than 1.8 million passengers, totaled €190 million ($256.9 million). Its fleet comprises 12 737s. No acquisition price was released.
Friday's signing marked the start of the due diligence process, which is expected to take a "few weeks," Icelandair said, adding that it aims to sign a final purchase agreement by mid-June. "Icelandair will purchase 50% of the shares before the end of June and the remaining 50% during 2008," it said in a statement. CEO Jon Karl Olafsson said, "We have been looking towards Eastern Europe where we think that we have good business opportunities with our knowledge and experience. . .It is obvious that if Icelandair Group acquires Travel Service, it will grow fast this year. This airline is, regarding number of passengers and fleet, close to Icelandair's scheduled operations in size. We consider this a good investment."
Other News
Monday May 14, 2007
Icelandair Group signed a letter of intent Friday to acquire Travel Service, the largest private airline in the Czech Republic and owner of LCC Smart Wings. Travel Service operates charter flights to and from Prague and Budapest in addition to Smart Wings. Its revenue in 2006, when it carried more than 1.8 million passengers, totaled €190 million ($256.9 million). Its fleet comprises 12 737s. No acquisition price was released.
Friday's signing marked the start of the due diligence process, which is expected to take a "few weeks," Icelandair said, adding that it aims to sign a final purchase agreement by mid-June. "Icelandair will purchase 50% of the shares before the end of June and the remaining 50% during 2008," it said in a statement. CEO Jon Karl Olafsson said, "We have been looking towards Eastern Europe where we think that we have good business opportunities with our knowledge and experience. . .It is obvious that if Icelandair Group acquires Travel Service, it will grow fast this year. This airline is, regarding number of passengers and fleet, close to Icelandair's scheduled operations in size. We consider this a good investment."