Turkish low-cost carrier Pegasus Airlines on Monday announced it has signed a deal to buy the biggest Czech airline, Smartwings, along with its owner, Czech Airlines (CSA), in a bid to strengthen its presence in Europe and expand globally.
In a statement, Pegasus said the 154-million-euro agreement ($180 million) includes the debts of both companies. The deal, which still needs the green light of regulators, would see Czechia's largest carrier retaining its own name.
"Together, we aim to spread our wings across Europe with two distinctive brands, Smartwings and Pegasus Airlines," the Turkish carrier said.
"The strategic investment aims to strengthen the company's presence in Europe and support global expansion."
Pegasus shares were up 3% in Istanbul on Monday.
Completion of the deal is conditional upon obtaining the necessary approvals in Czechia and other countries where Smartwings Group operates, with completion expected to take place in 2026, Pegasus said.
Smartwings spokeswoman Vladimira Dufkova said the process of transferring the ownership of Czech Airlines should be completed in 12 months.
Smartwings, the leading leisure carrier based in Czechia, has an air operator certificate in Czechia, Slovakia, Poland and Hungary, with a network of 80 destinations in 20 countries. The airline previously negotiated a takeover by Polish national carrier LOT, but that fell through over the weekend after Pegasus filed a rival bid.
The Smartwings and Czech Airlines' fleet has 47 aircraft. Smartwings generated around 1 billion euros in revenue in 2024.
The statement quoted the founders and shareholders as saying they had "made the strategic decision to transfer Czech Airlines and Smartwings to Pegasus Airlines – a strong European carrier with the potential and capability to further expand and strengthen the company's operations."
Smartwings has operated as a low-cost carrier for two decades, but traces its origins to a charter company called Travel Service.
Travel Service also acquired control of troubled flag carrier Czech Airlines in 2018, and it took on that name for the holding company. The final flight under Czech Airlines' livery took place in 2024, with Smartwings taking over operations.
Pegasus Airlines was established in 1990 and operates 158 international routes to 55 countries. It also flies to 38 destinations within Türkiye, its website says.
Pegasus has a fleet of 127 aircraft and operates out of its primary hub at Istanbul's Sabiha Gökçen airport on the Asian side of the city.
