News

The state-run national carrier Czech Airlines (ČSA) posted a loss of 1.83 billion crowns in the first half of 2009, the internet news website iDnes.cz reported, citing from a report which the company will make public at a press conference on Wednesday. The loss is more than 0.5 billion higher than anticipated. For the full year, ČSA expects a loss of around 2 billion crowns. The loss is being attributed to a fall in passenger numbers by one-tenth and an overall decline in plane ticket prices resulting from fierce competition. ČSA did not want to comment of the results. The airline is undergoing privatization, the state having offered its entire 91.5 percent stake in the airline. Two companies had reached the second stage of privatization but last week Air France-KLM, Europe’s biggest airline, withdrew its bid leaving just one Czech bidder –Unimex Group in the running. A final decision is expected by September 30.

The Czech Agrarian Chamber says Czech agricultural profits will reach around 2 billion crowns (around USD 112 million) compared to 9.7 billion crowns (USD 540 million) last year. The head of the Agrarian Chamber, Jan Veleba, said on Sunday the agricultural sector might post a loss of about 4 billion crowns next year – the first time since joining the EU – in case it does not receive any state subsidies. Agriculture Minister Jakub Šebesta says the ministry will not curb farming subsidies this year, however, next year’s state budget may not allow for full payment.

Czech Prime Minister Jan Fischer has said his cabinet is going to discuss measures to curb the projected 2010 state budget deficit in the coming days. In an interview for Saturday’s edition of the daily Právo, Mr Fischer said freezing pensions was one of possible options, despite Labour and Social Affairs Minister Petr Šimerka’s plan to raise pensions by two percent next year. Finance Minister Eduard Janota warned recently that the 2010 state budget deficit would reach an unprecedented 230 billion crowns (USD 12.92 billion). He has proposed cuts in spending and tax hikes to reduce the shortfall.

Anti-nuclear activists from the Austrian group Atomstopp have called on the country’s chancellor to raise the issue of the Temelín nuclear power plant at Monday’s meeting with his Czech counterpart. Czech Prime Minister Jan Fischer is scheduled to meet Chancellor Werner Faymann in Vienna on Monday to talk primarily about the economic recession and measures to counter it. According to the ČTK news agency, sensitive topics, such as the Lisbon treaty and the proposed construction of two new reactors at Temelín might also be among the topics discussed.