Korean Air may buy stake in Czech Republic's flag carrier
The Korea Herald/ANNSEOUL -- Korean Air, the nation's biggest airline, is considering a bid for a stake in Czech Airlines to strengthen its presence in Europe, company officials said Friday.
February 18, 2013, 12:35 am TWN
The carrier plans to reach a final decision after completing due diligence on the Czech Republic's flag carrier later this month, said the officials, who wished to remain anonymous.
This marks the first attempt of a domestic airliner to seek a stake in a foreign counterpart.
If realized, the acquisition of the 44-percent stake would not include managerial control of Czech Airlines, with state-controlled parent company Czech Aeroholding retaining its position as the largest shareholder.
The benefits that Korean Air could expect from network expansion would include sharing European routes outside its reach and launching joint marketing campaigns, the local airline officials said.
Currently, Korean Air flies to and from 12 destinations in Europe and Russia.