KAL finalizes Czech Airlines deal

Hanjin Group Chairman Cho Yang-ho, third from left, and Czech Republic Prime Minister Petr Necas, fourth from left, and officials from Korean Air Lines and Czech Airlines pose Wednesday (local time) after signing a deal in Prague. Provided by the company

Korean Air Lines became the first local airline to hold a stake in a foreign carrier when it formalized a deal with Czech Airlines on Wednesday (local time) in Prague.

The nation’s flag carrier, which is controlled by Hanjin Group, said it officially acquired 44 percent of Czech Airline’s shares and became the second-largest shareholder of the airline after Czech Aeroholding, which has 51.7 percent.

“We have known Czech Airlines for a number of years, during which we have both been part of the SkyTeam alliance,” said Hanjin Group Chairman Cho Yang-ho, who was joined by Czech Republic Prime Minister Petr Necas at the signing ceremony. “Our successful codeshare collaboration only confirms that our decision to become a strategic partner of the Czech national carrier is the correct decision.”

Founded in 1923, Czech Airlines operates 23 aircraft to 40 cities in 23 countries. Czech Airlines became SkyTeam’s fifth member in 2001.

KAL said that the deal will boost its brand value in the global market, while offering passengers a wider variety of European routes.

Passengers flying to European cities such as Berlin, Barcelona, Copenhagen, Milan, Brussels, Budapest and Warsaw can easily transfer through Prague’s airport, which offers connecting flights of two hours or less, according to KAL.

The airline plans to expand its network through the Prague airport by increasing codeshare flights and improving its connection schedules with Czech Airlines.

Also, to help Czech Airlines operate direct flights between Prague and Incheon, KAL will lease the Czech carrier an Airbus A330-300. Czech Airlines plans to operate direct flights between Prague and Incheon twice a week.

By Joo Kyung-don [kjoo@joongang.co.kr]