AIRLINE - Pegasus Airlines to acquire Smartwings and Czech Airlines

Pegasus Airlines announced it has reached an agreement in which it will acquire 100% of Czech Airlines and its subsidiary Smartwings. The deal is worth around 150 million euros and is expected to be finalized next year. Pegasus has said it will retain the two brands it will acquire.

According to several news-outlets, the bid from Pegasus Airlines won from bids from LOT, Discover Airlines and SunExpress.

The current set-up of companies surrounding Czech Airlines and Smartwings is a bit complex. The main holding company is the Smartwings Group, which is in itself owned by Czech Airlines. As a Group is has two brands, Czech Airlines and Smartwings but only one Air Operator's Certificate. Smartwings also has subsidiaries in Hungary, Poland, and Slovakia.

Smartwings Group's fleet is currently made-up of four Airbus A220-300s and two A320s (flying in Czech Airlines-livery), 21 Boeing B737-800s, two B737-900ERs, and thirteen B737-8s (flying for Smartwings) and three B737-800s (flying one each for the subsidiaries in Hungary, Poland, and Slovakia).

Pegasus Airlines is Turkey's second-largest and largest privately owned airline. It currently has a fleet of six A320s, 46 A320neos, 66 A321neos, and nine B737-800s.

Illustration: Pegasus Airlines / Scramble