Czech Airlines OK’s Alpha purchase of catering arm

Two boards that operate Czech Airlines announced December 20 that they have approved the sale of Air Czech Catering to Alpha Overseas Holdings Limited, a subsidiary of Alpha Airport Group.

The airline is in the midst of a two year Recovery Strategy that in part involved the sale of its catering business and other non-core operations. “By selling the catering service we will succeed in disengaging ourselves from past debts and freeing up funds for the further development of the company without the help of the owner,” said Czech Airlines president Radomir Lasák, in the December 20 announcement.

The sale is expected to be voted on by shareholders in a general meeting next month. According to Czech Airlines, 24 companies expressed interest in the Air Czech Catering unit, 17 made preliminary offers and two companies submitted final bids for the unit in October. “The agreed price significantly exceeds the independent market valuation,” said a release from Czech Airlines.