* CSA says it will stay afloat unless market worsens a lot
* 2009 pre-tax loss of up to $20 million seen
* CSA sees a 0-6 pct passenger drop in 2009
(Adds more details, quotes)
By Jan Korselt
PRAGUE, March 13 (Reuters) - Czech Airlines (CSA) faces a
tough year due to a drop in passenger traffic and peaking lease
payments, but the firm will stay afloat unless the market
deteriorates dramatically, its CFO said on Friday.
CSA expects a 2009 pre-tax result between the break-even
point and a loss of up to $20 million as passenger traffic drops
by up to 6 percent, Chief Financial Officer (CFO) Lubos Cerny
said in an interview for news agencies.
The company, which is 91.5 percent state-owned, is due to be
privatised this year.
"2009 will be obviously tough," Cerny said. "It is a
question of which direction the market will set off in, when it
has been currently dropping (by around) ... 5 to 10 percent.
"But anyway, CSA will keep its feet on the market."
Cerny said he saw an "extremely bad" first quarter, as the
firm saw annual passenger drops of 8 percent in January and
February, and costs have been burdened by fuel prices as the
carrier hedged at the high levels seen last year.
He said the firm hedged 80 percent of its jet fuel for 2009
at an equivalent of oil costing $70-75 per barrel, burdening its
costs mainly in the first three months this year. Benchmark
crude <CLc1> traded around $47.08 on Friday.
The company also faces high leasing payments which will peak
at almost $100 million this year before decreasing in the
following years and easing pressure on the firm's cash flow,
Cerny said.
"We are still up and running, we still have all the
necessary credit lines in place," he said, adding that if it was
not for the high leasing payments, the company would be doing
quite well.
"Most firms in the airline segment have only one goal: to
survive in the current market situation," Cerny said. "Our
target is to survive until April 30, 2010. We reckon that we
will be able to achieve that."
Analysts have estimated CSA could fetch around 5 billion
Czech crowns ($243.4 million) in its expected sale, which has
been in the works since the current government came to power
following the 2006 election.
Air France-KLM <AIRF.PA> and Aeroflot <AFLT.MM> have
expressed interest in the airline.
Cerny refused to comment on price estimates.
He said CSA would be more valuable to a strategic partner
like another airline -- which would already have important
marketing and sales infrastructure in place -- rather than a
financial investor.
The global economic slowdown has sapped travel demand,
putting airlines under heavy pressure. []
[]
Austrian Airlines said on Friday its 2008 adjusted EBIT loss
was 35.2 million euros ($45.30 million), compared to 55.7
million euros earnings a year ago. []
The troubled airline also recommended its shareholders to
accept a takeover offer from Germany's Lufthansa <LHAG.DE> at
4.49 euros per share, conditional on the Austrian state assuming
debt of around 500 million euros.
($1=20.54 Czech Crown)
(Reporting by Jan Korselt; Editing by Sharon Lindores)
