CZECH REPUBLIC. Czech Airlines (CSA) yesterday confirmed the divestment of its duty free and travel retail operation, DFR, and launched an open tender for its sale. UniCredit CAIB has been mandated by CSA to organise the sale of DFR and other non-core activities.
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Click here to read the full UniCredit document |
DFR is an autonomous sales unit of CSA. It operates three duty free shops at Prague airport (one at Terminal 1, one at T2 and one in the connecting section between the two terminals). It also has a store at Karlovy Vary Airport.
CSA said that 45% of sales are duty free to passengers flying outside the EU with the balance coming from duty paid items to intra-EU travellers.
Prague Airport is a modern facility with two terminals for Schengen and non-Schengen countries. Plans are well advanced to build a second runway, which will increase annual capacity of the airport to 20 million passengers.
The shops are supplied from a logistics centre based in Kněževes, 6 km west of Prague Airport.
DFR employs some 80 people, of which 41% work as shop assistants.
Key operational parameters
DFR operates some 796sq m of commercial space. CSA said that DFR’s top 10 suppliers accounted for more than 63% of sales in 2008.
DFR enjoys long-term lease agreements with Prague Airport, CSA said. It noted the duty free operation’s “sustainable business model which delivers excellent commercial results” [see table] as well as “financial soundness with stable annual net income and nil debt.”
That combination, allied to the high percentage of non-EU travellers, is likely to make the business an attractive target for several of the industry’s major players. Possible candidates include Gebr Heinemann (very strong in central and East Europe), Aer Rianta International (East Europe is a core strength of the Irish group), Dufry, Autogrill and Aelia.
More details soon.
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Table shows key financials for 2007 to August 2009; Source: CSA |
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This pie chart shows the 2008 sales mix. Source: CSA |
MORE ON THE DFR SALE
Czech Airlines prepares to sell duty free operations – 08/10/09
