Israir Steps up Smartwing Takeover Talks

DALLAS - Israir (6H) has revealed that it is currently involved in "intensive negotiations" with the owners of the Czech airline Smartwings (QS) over its potential takeover.

The news was revealed as part of the Tel Aviv-based leisure group's full-year financial statement. In this, 6H announced a US$20.6m net profit, up from a US$34.6m loss in 2022. This was despite operational issues in Israel and rising operating costs such as fuel.

Current Ownership

Israir Group announced last year that it had submitted a formal proposal to acquire QS. The deal was valued at €44m (US$47.9) and covered the takeover amount plus the clearing of loans. Smartwings is currently 51%-owned by Czech businessmen Jiri Simane and Roman Vik. The Chinese state-owned CITIC Group holds the remaining 49%.

According to Israir, QS currently operates over 40 aircraft made up of Boeing 737-700s, -800s, -900ERs and -8s and carries over six million passengers per year.

The deal, the group added, would allow for improved operational synergies, reduced costs and expansion of both carriers' networks.

Smarwings was originally established as a charter carrier known as Travel Service in 1997. In 2004 it launched the low-cost brand Smartwings and has subsidiaries in Poland, Hungary and Slovakia. It also has a 30% share in the country's flag carrier Czech Airlines (OK).

https://airwaysmag.com/lot-smartwings-boeing-737-max-compensations/

Featured Image: Israir Airbus A320 (4X-ABG). Photo: Alberto Cucini/Airways.