Icelandair extends Eastern European reach
The Icelandair Group is to acquire Travel Service, the largest privately owned airline in the Czech Republic, for an undisclosed sum.
Travel Service operates charter flights from Prague and Budapest and also owns and operates low-cost scheduled carrier Smart Wings. It carried a total of 1.8 passengers last year using a fleet of 12 Boeing 737s and reported turnover of €190m (£130m).
In a statement the Icelandair Group said it had signed a letter of intent to purchase 50% of Travel Service’s shares before end-Jun07 and the remainder during 2008.
The acquisition will take the group’s estimated turnover for the year 2007 to 72bn Icelandic kronur (£571m), 30% higher than in 2006. Once the acquisition has completed, Icelandair forecasts annual turnover of more than ISK80bn (£635m).
Commenting on the deal Jon Karl Olafsson, Icelandair Group chief executive, said: ‘This letter of intent is in accordance with Icelandair Group’s intention of growing in the international charter flights sector. We have been looking towards Eastern Europe where we think that we have good business opportunities with our knowledge and experience.
‘Last year we acquired the Latvian airline Latcharter, which has been a success story, and now we take a big step even further in this direction. It is obvious that if Icelandair Group acquires Travel Service, it will grow fast this year. This airline is, regarding number of passengers and fleet, close to Icelandair’s scheduled operations in size.’
In addition to flagship Icelandair, the group operates a further 11 independent subsidiaries including regional carrier Air Iceland, Bluebird Cargo, Icelandair Hotels and inbound tour operator/travel agent, Iceland Travel.
Report by Chitra Mogul
Chitra Mogul
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026