Smartwings Airlines has fully returned to the control of Czech shareholders, ČTK announced today. Almost half of the share previously owned indirectly by the Chinese company CITIC was bought by the Czech company Prague City Air, owned by Smartwings Group owners Jiří Šimán and Roman Vik, according to information from the airline. By mutual agreement, the companies will not disclose the price of the transaction, Smartwings spokeswoman Vladimíra Dufková said.
“On February 20, 2024, the purchase of 49.92 percent of the shares in the company was completed Smartwings, as, between the buyer, Prague City Air, and the seller, Rainbow Wisdom Investment Limited,” announced Dufková. It was through Rainbow Wisdom Investment that the Chinese firm CITIC held a 49.92 percent stake in Smartwings. “Smartwings, as is thus brought back fully under the control of the Czech shareholders, who cross-own 100 percent of the shares of ČSA and Smartwings.” added Dufková.
The information about the transaction comes after the Israeli airline Israir lost its interest in joining Smartwings airlines. According to its statements to the Tel Aviv Stock Exchange, CITIC negotiated the purchase of a stake in Smartwings. The Chinese company acquired a stake in Smartwings in 2016, it was one of the Chinese investments promoted by the then president Miloš Zeman. The buyer at the time was the Chinese state-owned group CEFC, after whose collapse another state-owned company, CITIC, took over the assets.
Prague City Air was founded in January last year and became an investor in the air carrier ČSA, which in March 2021 found itself in bankruptcy due to high debts. The court-approved reorganization of ČSA ended the summer before last year. Over the years, however, ČSA lost most of its planes and routes, Smartwings is now the main Czech carrier.