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European Bank makes US$ 30 million equity investment in Czechoslovak Airlines
The European Bank today announced a US $30 million (ECU 23 million) equity investment in Ceskoslovenske Aerolinie (CSA), the national air carrier of the CSFR, in order to contribute to the financing of its privatization and its fleet modernization programme, subject to the approval of the Czech government.
The investment will support the privatization process of CSA, currently a 100% state owned enterprise. The Bank will be one of the principal shareholders, with 20% of the enlarged capital, along with the Czechoslovak National Property Funds (40%), other CSFR institutions (20%), and Air France (20%).
CSA is currently servicing 52 destinations in 40 countries, generating an important part of its revenue from services to Western Europe. The Bank's investment will help finance the replacement and modernization of the CSA fleet, which is characterized by its fuel inefficiency.
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