The Prague Post Online: Business: Biz Week

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November 23rd, 2008

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Biz Week

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CARS New passenger car sales rose nearly 9 percent in the past year to 73,455 units in the first half of 2008, and light utility vehicles (LUV) saw an even greater growth at 13 percent to 31,671 units, according to the Car Importers Association. Škoda came out on top as the best-selling make with 22,252 cars sold in that same period, trailed by Ford with 5,268 units, Renault with 4,646 units and Volkswagen with 4,605 unites. Škoda also sold the most LUVs with 8,015 units.

TRAVEL Top seven Czech travel agencies are growing across the board and commanding a larger share of the travel industry. Five years ago, the top seven made up 15 percent of sales in the market but last year that rose to 35 percent, according to the Czech Statistical Office. Seven agencies have staff of 100 or more, notably Čedok and Exim Tours. Sales grew from 5 billion Kč ($333 million) in 2002 to 13.6 billion Kč in 2007.

FUEL Despite rises in fuel costs, the country still enjoys lower prices than neighboring countries, with Czechs paying on average 2 Kč less for a liter of gas than drivers in Slovakia and Poland, 6.5 Kč less than in Germany, and 1 Kč according to fuel card operator CCS.

RETAIL The European Commission authorized the Czech Anti-Monopoly Office (ÚOHS) to decide the legality of German retail chain REWE’s planned acquisition of 146 local Plus-Discount outlets, the EC announced July 4. REWE, which also owns the Billa and Delvita supermarket chains, plans to make the Plus-Discount outlets into Penny Market stores.

ELECTRICITY Analysts expect commercial electricity rates to jump up to 20 percent in January, the daily Hospodářské noviny reported July 3. The hike may force up the prices of small companies, which, unlike larger businesses, lack the contracts to secure fixed energy prices.

TOURISM The number of Russian tourists visiting Prague rose 35 percent last year, according to a Regional Development Ministry report published July 3. The city attracts mostly well-off Russians, who spend an average of 5,500 Kč a day during their visit and stay for an average of six days.

GE GE Aviation announced its acquisition of Czech company Walter Engines, a move the company said July 3 would allow it to enter the market for small turboprop airfcraft. A GE release said the sale was less than $70 million. Walter Engines, based in Prague, has made aircraft engines since 1923 and reported revenues of $28 million last year. GE announced plans to increase production to 500 engines a year by 2010 and will introduce an upgraded version of Walter’s primary engine in July.

TRAVEL Irish budget airline Ryanair has launched a direct route from Birmingham to Prague, one of 10 new routes the company has added from its new base at Birmingham. The route will be launched October 26 and operate five times weekly.

TENDER Czech Airlines (ČSA) has won the tender for further handling services for Austrian Airlines flights in Prague. ČSA will provide passenger and aircraft handling on the ramp as well as other standard handling services. There are five daily flights from Vienna to Prague.

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