The Czech Office for the Protection of Competition (ÚOHS) has granted approval for the Turkish group Pegasus to acquire Czech Airlines a.s., which also includes the carrier Smartwings. This merger approval is conditional upon commitments proposed by Pegasus to ensure effective competition in the market.

The commitments primarily involve the transfer of certain slots for the summer season on the regular route from Prague to Antalya to another airline. The decision was made at the end of August but is not yet final, as the deadline for filing an appeal has not yet passed.

Pegasus Airlines is a Turkish business group that operates regular domestic and international flights, mainly from its base at Istanbul Sabiha Gökçen International Airport. In relation to the Czech Republic, Pegasus operates regular passenger flights between Prague and Istanbul, as well as Prague and Antalya.

Czech Airlines (ČSA) is a holding company that controls Smartwings and its subsidiaries, focusing on international charter and regular flights, primarily from Prague and other airports in the Czech Republic and Slovakia. Smartwings also engages in aircraft leasing and, to a lesser extent, cargo transport.

The ÚOHS has been reviewing the case since May when it received the merger proposal. The authority identified concerns regarding overlapping activities in the market for regular direct passenger air transport on the Prague-Antalya route during the summer season, where the merged entity would achieve a very high market share, significantly distancing itself from other competitors.

In its assessment, the authority considered that, contrary to initial expectations, no new airlines had entered the relevant market. Given these circumstances, the proposed transaction in its original form could lead to a substantial reduction in competitive pressure.

The ÚOHS approved the merger only after Pegasus proposed the aforementioned structural commitment to transfer slots to a third party. The purpose of this commitment is to allow other potential competitors to quickly gain access to airport slots at Prague and Antalya, including time slots suitable for operating direct regular flights between these cities, as stated by ÚOHS Vice-Chairman Kamil Nejezchleb.