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Signals mixed on sale of airport

Any deal contingent on the delayed construction of a third runway

By Paul Voosen
Staff Writer, The Prague Post
June 20th, 2007 issue

RENÉ JAKL/THE PRAGUE POST
Before Ruzyně Airport can be sold or leased, it must be transformed into a joint-stock company.
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In what seemed a reverse of the Transportation Ministry’s previous position, Deputy Minister Jiří Hodač has come out in favor of a full sale and privatization of Prague Ruzyně International Airport.
Previously, Transportation Minister Aleš Řebíček had indicated that, rather than selling the airport, the government favored a long-term leasing of its facilities, citing its strategic value to the state.
The airport’s sale, which cannot begin until issues around the construction of its long-delayed third runway are resolved, would net the country between 60 billion and 70 billion Kč ($2.8–3.3 billion), according to Hodač, who made his announcement June 13.
The Transportation Ministry now disputes Hodač’s comment.
“Mr. Hodač is expressing mainly his own opinion,” said Karel Hanzelka, the ministry’s spokesman. “We are still considering both options — leasing and sale — and a final decision has not been made.”
When the ministry is prepared to announce its final decision it will likely rest on the progress the airport makes in building a new runway.
“One of the key tasks is the new parallel runway. Before the sale process can start, we have to resolve this issue,” said Eva Krejčí, spokeswoman for the airport.
The runway has been planned since 1972 and is necessary to increase the airport’s operating capacity. It would run 3.5 kilometers (2.2 miles) and could cost up to 7 billion Kč.
The airport is working on an environmental impact assessment for the runway, which will be submitted to the Environment Ministry by the end of October, Krejčí said.
One obstacle to the runway’s construction is that the airport does not own all land on which it intends to build. The investment group Penta controls a majority of this area and talks about a sale are reportedly ongoing.
In addition, the airport has to come to terms with dozens of other smaller landholders, many of whom have opposed the runway’s construction.
To prepare the airport for a sale or lease, the state appointed a new CEO, Miroslav Dvořák, who took over management June 1. He replaces Hana Černochová, who led the airport for over two years.
After stepping down in May, Černochová briefly served as CFO, before resigning in early June to work in the private sector.
— Hela Balínová contributed to this report.

Paul Voosen can be reached at pvoosen@praguepost.com


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