Aelia Group and its partner, sister company HDS Retail Czech Republic, have secured a deal to take over Czech Airlines’ (CSA) retail business following a tender procedure. The deal includes three multi-category duty-free and travel-retail outlets at Prague Ruzyne airport, one location at the regional airport of Karlovy Vary, plus the inflight retail concession onboard CSA. The total CSA retail business generated sales of around 650 million Czech crowns in 2008 (approx. €25 million).

The new joint venture will operate under the name Aelia Czech Republic.

Aelia Group Chairman and CEO Jean-Baptiste Morin expressed satisfaction at the successful outcome of a project in which the Aelia and HDS Czech Republic teams worked extremely closely over a period of weeks. “This is great news for our Group on a number of different levels. Firstly, it gives us a valuable foothold in a very interesting travel-retail market. The Czech Republic is one of the powerhouse economies in the region, and Prague itself is a hub both for business and tourism. We are delighted to begin operating here and are confident we can add value for our new airport partners and improve travellers’ experience at Prague and Karlovy Vary, and also onboard CSA.

“Secondly, the result shows the benefits of close cooperation between the different subsidiaries of the Lagardère Services group. The scope of our parent company’s operations, in 21 countries across 4 continents, gives us huge capacity to deploy local knowledge alongside central expertise. In the Czech Republic, Aelia and HDS will pool our skills to the benefit of our business partners and customers, ensuring a world-class retail offer that is tailored to the local environment.”

Richard Kalhous, CEO, HDS Retail Czech Republic commented: “The CSA business allows us to expand Lagardère Services’ footprint in a region that is of considerable strategic importance. Aelia’s successful entry into the Polish travel-retail market makes us confident that our business model is well adapted to the requirements of landlords, and we will work very closely with Aelia to make this new venture a success.”

Morin added: “I would like to thank CSA for the very professional way in which they have conducted this process. Most particularly we are grateful to our partners at HDS Czech Republic, with whom we look forward to a long and successful partnership in Czech travel-retail.”

The deal gives Aelia and its parent company Lagardère Services a second major duty-free platform in central and eastern Europe, following the opening of its operation in Warsaw Frédéric Chopin airport terminal two in March 2008. There, as will be the case in the Czech Republic, the business is operated by a joint venture between Aelia and its local sister company, HDS Polska.