Smartwings Transitions to Full Czech Ownership After CITIC Group Stake Sale

Smartwings has officially become a fully Czech-owned entity, following the sale of CITIC Group’s 49.92% stake to Prague City Air, a local Czech company. This strategic acquisition, finalized on February 20, 2024, marks a significant shift in the airline’s ownership structure, firmly placing control back into Czech hands. Smartwings spokesperson Vladimíra Dufková confirmed the transition, highlighting that Czech shareholders now possess complete ownership of both Smartwings and its subsidiary, CSA Czech Airlines.

The decision for CITIC Group, a Chinese state-owned enterprise, to divest its interest in Smartwings reverses its initial investment made in 2016. At that time, the stake was acquired through CEFC Group, which later transferred to CITIC Group following CEFC’s bankruptcy. This move underscores a reshuffling of Smartwings’ financial and operational alignment towards a wholly domestic ownership model.

Israir’s withdrawal from purchasing the stake, citing the geopolitical tensions in the Middle East, opened the door for Prague City Air to step in and secure the acquisition. Although the financial details of the transaction between Smartwings and Prague City Air remain undisclosed, the deal signifies a homecoming of the airline to Czech stewardship.

Prague City Air’s acquisition also reinforces its investment in the Czech aviation sector, already holding a 70% stake in CSA Czech Airlines. This consolidates the control of Czech aviation assets under entities associated with Smartwings Group owners Jiří Šimáně and Roman Vik, who also directly own the remaining 50.08% of Smartwings. Their involvement has been pivotal, especially in providing financial support to CSA during its restructuring phase through a significant loan, further illustrating their commitment to stabilizing and growing Czech aviation.

This transition to full Czech ownership for Smartwings is poised to influence its future strategic directions, potentially focusing more on aligning with national interests and exploring new opportunities within the European and global aviation markets.