Article available here.
Fleet modernization, better service and facilities, ensuring long-term stability. This is also what experts say in connection with the future of the airline Smartwings, which is likely to be purchased by the Turkish low-cost airline Pegasus Airlines. According to the president of the Aerospace Industry Association, Jiří Protiva, the acquisition may have a positive impact on the Czech aviation industry.
“The takeover of Smartwings by the Turkish carrier Pegasus is a significant step towards strengthening the stability and competitiveness of the Czech aviation market, expanding the destination network and creating new opportunities for the Czech aviation industry,” said Protiva.
According to him, Pegasus has almost 140 Boeing and Airbus aircraft on order, which indicates that its entry into the Czech Republic may bring modernization of the Smartwings fleet and with it new opportunities for providers of maintenance, service and related services, as well as wider employment for technical workers.
“This acquisition can also represent a new impetus for Czech-Turkish industrial cooperation,” Protiva added.
Turks take over CSA and Smartwings
Economy
Petr Škoda, CEO of logistics company JUSDA Europe, told Novinky: “In the short term, there may be some operational uncertainty or adjustments to the offer, but in the medium term, the market usually benefits from higher efficiency, better connectivity and stronger price discipline. For customers – whether in passenger or cargo transport – this often means a wider network of destinations and more stable services.”
“From a professional aviation perspective, it will be crucial how Pegasus handles Smartwings’ regional knowledge and whether it maintains its ability to flexibly respond to seasonal demand in Central Europe. A successful combination of these two worlds can create a strong player that will be better able to face future crises, whether it concerns fluctuations in demand, fuel prices or geopolitical risks,” Škoda added.
“It is a shame that Prague will decline significantly as an air transport hub. At the same time, it shows that it is very good that we rejected the idea during the Covid period that ČSA/Smartwings is a strategic company for the state and should receive some form of support,” Radim Dohnal, an analyst at Capitalinked, told Novinky.
Ondřej Berka, director of investment banking at WOOD & Company, believes that the transaction means ensuring the company’s long-term stability and growth potential. “The shareholder of Pegasus Airlines belongs to very capital-strong and pro-growth Turkish companies,” said Berka.
The companies announced on Monday that Smartwings will likely be purchased by Turkish low-cost airline Pegasus Airlines. The amount is said to be 154 million euros, equivalent to 3.8 billion crowns.
“I am surprised by the higher purchase price, I would have expected a lower multiple of profit or EBITDA. The only way I can explain the multiple achieved is the value of paid or contracted slots at airports,” Dohnal added.
Polish airlines LOT were also interested in Smartwings, but they offered a smaller amount. On Monday, the local media wrote about the fiasco. The Poles reportedly had all the documents ready for signing. “The contract with LOT has been negotiated and representatives of the Polish carrier have flown to Prague,” the Rzeczpospolita website reported.