Czech Airlines Leaving the Georgian Market

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The FINANCIAL — Czech Airlines has cancelled all flights to Georgia from June 1, 2012. The company is going to terminate the contract with its general sales agent Berika in Tbilisi this summer.

 

“Czech Airlines is implementing a series of changes, which include changes in network structure,” Hana Hejsková, Communications Director at Czech Airlines, told The FINANCIAL.

“The development on market air transportation and demand of customers is forcing all airlines to be flexible and adapt their business plans to the current situation, the decision is mainly based on economic data and performance of the respective line,” Hejsková said.

Czech Airlines opened their GSA in Georgia in 2007. The company was one of the most popular air companies in Georgia because of its low prices, high service and good connections. “Out of the 100% of my ticket sales 35% were made up by Czech Airlines,” said Ella Karapetian, Director of travel agency BusinessTravelCom.

“The company was frequently offering different discount packages. Customers could buy a round trip to a European destination for approximately 500 GEL,” Karapetian said.

Karapetian said that many airlines failed to compete with Czech Airlines because of their flexibility in the cheap prices segment. 

“In 2012 Czech Airlines plans to complete its network model. “It is not excluding the possibility of further changes, additions as well as reduction of flights in the future based on market situation change,” Hejsková said.

“The company should become a part of Czech Aeroholding soon, this means it will become a daughter company of Czech Aeroholding and sister company of HOLIDAYS Czech Airlines, Czech Airlines Technics, Czech Airlines Handling and Prague Airport,” Hejsková added.

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Just recently, from March 1st Latvian air company Air Baltic withdrew its official representatives from Georgia, leaving just a general sales agent, travel agency Discovery.

 

 

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