The Czech competition authority, the Office for the Protection of Competition, has conditionally approved the acquisition of Czech Airlines holding company ČSA and its subsidiary Smartwings by Turkish low-cost carrier Pegasus Airlines. The regulatory clearance follows an in-depth review initiated in May, after the watchdog determined that the original merger proposal posed significant risks to market competition on direct passenger routes between Prague and Antalya during the summer season.
According to the regulator, the combined entity would have commanded an excessively dominant market share on the Prague–Antalya corridor, leaving a substantial gap between itself and existing competitors. The authority noted that anticipated entry by rival airlines had failed to materialize, creating concerns that the transaction in its original form would drastically reduce competitive pressure and harm consumer choice.
To resolve these competition concerns, Pegasus proposed remedies that include transferring a portion of its summer airport slots on the direct Prague–Antalya route to a third-party air carrier. Office Vice-Chairman Kamil Nejezchleb stated that the structural commitment is designed to facilitate swift access for prospective competitors to essential slots at both Prague and Antalya airports, specifically during prime time slots suitable for scheduled direct flights.
Under the deal, Pegasus will absorb the ČSA holding company, expanding its footprint across Central Europe while gaining control over Smartwings’ charter, scheduled passenger, aircraft leasing, and belly-cargo operations based out of the Czech Republic and Slovakia. Although the regulatory decision was issued in late August, the ruling remains subject to appeal until the statutory deadline expires.
