Catering unit sales in plans for 2007 at Czech

CSA Czech Airlines has plans to turn the corner after years of losses in 2007 in part by divesting itself of the company’s cargo terminal and catering services.

In an announcement at the end of December, the airline said it anticipates a profit of 42 million Czech crowns (US$2 million). However planners cautioned in the December 21 statement that labor laws enacted in the country could cost the airline an additional 180 million crowns (US$8.4 million). Currently, the airline plans to keep its fleet of 50 aircraft and retain its 5,000 employees.

The airline is rolling out larger aircraft this year, increasing capacity. The carrier cut more than 200 million crowns (US$9.4 million) last year from operating costs.

CSA still has a number of hurdles. It could not reach an agreement with its unions for salary increases for 2007. Personnel costs will increase by 300 million crowns (US$14 million).

CSA expects to carry 5.7 million passengers in 2007, an increase of 5.6 percent.

“The company will be introducing standard management tools such as a sales rep motivation program and an incentive system for sales agencies as part of its marketing strategies for the new year,” said a statement from CSA.