I knew CSA had cut a few routes (e.g. Heathrow), but thought this report from Bloomberg on CSA's market share at their hub, Prague was rather eye-opening - anyone else have comments ? If you're gonna say anything with reference to Malev, please don't state the blindingly obvious.
Extract:
Ceske Aerolinie AS’s share of passengers handled at Letiste Praha AS fell to 36 percent from 45 percent in 2009, Miroslav Dvorak, the chief executive officer of Cesky Aeroholding, told Pravo in an interview.
The share should decline to 25 percent by the end of the restructuring of the unprofitable state carrier, which is being put together into a holding with the airport by the government, Dvorak said in Pravo.
One would have to think that if a hub-and-spoke airline has barely more than a third of market share at its hub in a non-primary city (Prague is not in the same league as Heathrow or Frankfurt), then the airline is going to struggle in the long term. Take it down to 25 %, and it seems to get rather concerning. High risk game - hope management know what they are doing.
Full article:
CSA Share in Letiste Passengers Declines, Dvorak Tells Pravo - Bloomberg