Pegasus Cleared to Acquire Czech Airlines, Office for the Protection of Competition Approved the Merger Subject to Conditions
The Office for the Protection of Competition (the Office) has approved the acquisition of Czech Airlines (České aerolinie a.s.) — and subsequently the airline Smartwings — by the Turkish group Pegasus. The Office imposed remedies to maintain efficient competition, which the Turkish company proposed itself. The conditions primarily involve transferring a certain number of the slots for the summer season on the Prague–Antalya scheduled route to another airline. The decision was issued at the end of August, but it is not final yet as the deadline for filing an appeal has not passed.
Pegasus Airlines is a Turkish business group that operates scheduled domestic and international flights, primarily from its main hub at Istanbul Sabiha Gökçen International Airport, but also from a number of other airports throughout Turkey. As regards the Czech Republic, the Pegasus Group operates scheduled passenger flights between Prague and Istanbul and between Prague and Antalya. The group also offers flights from Prague to other destinations, which passengers can reach with a stopover, primarily via Istanbul.
České aerolinie is a holding company that controls Smartwings and its subsidiaries. The group focuses on operating international charter and scheduled flights, primarily from Prague and other airports in the Czech Republic and, in some cases, Slovakia. Smartwings also operates in the aircraft leasing sector and, to a lesser extent, in the air transport of goods and cargo on passenger flights.
The Office has been reviewing the case since May, when it received a notification of the proposed concentration. It identified the main issue as the overlap of activities in the market for scheduled direct passenger air transport on the Prague–Antalya route during the summer season, when the entity created by the merger would achieve a very high market share and enjoy a significant position over other competitors. In the assessment, the Office also took into account the fact that, contrary to initial expectations, no other airlines have yet entered the relevant market. In light of these facts, the implementation of the proposed transaction in its original form could lead to a significant reduction in competitive pressure.
The Office approved the merger after Pegasus proposed the aforementioned structural remedy, which involved transferring slots to a third party. “The purpose of this condition is to enable other potential competitors to quickly gain access to airport slots at the airports in Prague and Antalya, including time slots suitable for operating direct scheduled flights between these cities,” said Kamil Nejezchleb, Vice-Chair of the Office.
Press Unit of the Office
26/157 - S0312/2026
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