In Business News this week: the government prepares to intervene as the national air carrier CSA continues to lose money; the car maker Skoda announces a record jump in profits - and a healthy rise in sales; the financial police's biggest ever operation ends with 100 arrested for cigarette counterfeiting; CD and DVD prices are cut as manufacturers struggle to compete with home copying; and could a new road tolls system lead to inflation?
Ministries step in as CSA keeps losing money
Record profits for Skoda Auto...
The car maker Skoda Auto made after-tax profits of over 8 billion crowns in the first three-quarters of this year, up a record 60 percent on the same period in 2005. The rise has been attributed to a streamlining of processes and cutting material costs.
...who also report a healthy sales rise
Skoda Auto has also reported a considerable increase in sales. In the first three quarters of this year it sold 11.1 percent more vehicles than in the same period last year. The Czech Republic's biggest exporter reported very strong growth in Russia, Romania and the Baltic states.
Biggest financial police operation ever breaks up cigarette counterfeiting group
Labels cut CD, DVD prices in effort to combat illegal copying
In an effort to combat illegal music downloads and home CD burning Czech music companies are reducing their prices in the pre-Christmas period, Hospordarske noviny reported this week. The retail price of imported CDs has been around 500 CZK (almost 23 USD) but that has been reduced to 359 CZK for selected titles, the head of EMI in the Czech Republic said. Other major labels are also selling CDs by foreign artists for between 350 and 380 CZK, while Czech CDs start at around 250. DVD prices have also been reduced, with new titles starting at around 500 CZK.
Road toll could lead to inflation as haulage prices increase
Road haulage prices in the Czech Republic could increase by 15 to 20 percent in 2007 due to the introduction of an electronic tolling system, the Czech Press Agency reported. Economist David Marek said the motorway tolls would lead to consumer price rises and were one of the inflation risks for next year.