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n the economic sphere, CSA went through one of the best
years in its seventy-five |
| year history and certainly the best year in
its modern history, dated since 1992, when the present joint stock company was
established. According to Czech Accounting Standards (CAS), the achieved profit of 413.6
million crowns (approximately 12.8 million USD) is the continuation of a positive economic
trend that began after 1993, and is the result of the company's management and of all
employees' efforts to increase revenues and decrease company expenses. |
|
|
| CSA has also been listing its economic results according to
International Accounting Standards (IAS) since the beginning of its existence as a joint
stock company. In 1998, a record economic result was achieved according to these standards
as well, when a profit of approximately 34.3 million USD was achieved - which represents a
considerable improvement when compared to 1997. |
| Another positive factor is that the
economic result achieved in 1998 completely eliminated any possibility of the application
of that provision of the Commercial Code of the Czech Republic which imposes special
measures on firms where the accumulated accounting losses of previous years (in the case
of CSA, incurred in 1993 - 94) exceed half of the registered capital. This indicator is
now less than 36 % at CSA and it is essential that the company has achieved this result
independently, without any help from the state or shareholders. It is still, however,
necessary to strengthen company funds, because as is shown, especially from the
balance-sheet data (which give results according to International Accounting Standards) -
the obligations of the company, almost solely taken by commitments to the financial
leasing of aircraft, exceed the equity and registered capital of CSA several times over.
This issue is expected to be solved in the future re-privatisation of the company. |
|
Ÿ Total and
operating economic results Ÿ
according to Czech Accounting Standards |
| mil CZK |
| 600 |
|
| 300 |
 |
| 0 |
| -300 |
| -600 |
| -900 |
| -1200 |
| -1500 |
| -1800 |
|
|
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
 |
operating results |
 |
total results |
 |
trend |
|
|
Ÿ Total and
operating economic results Ÿ
according to International Accounting Standards |
| mil USD |
| 60 |
|
| 40 |
 |
| 0 |
| -20 |
|
|
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
|
operating results |
|
total results |
|
trend |
|
|
| Ÿ Long-term
obligations and equity Ÿ |
| mil CZK |
| 10 000 |
 |
| 8 000 |
| 6 000 |
| 4 000 |
| 2 000 |
| 0 |
|
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
|
equity |
|
long-term obligations |
|
trend |
|
|
| In addition to its main activity - air
transport - CSA carries out several activities closely connected with air transport.
Results of all CSA activities were positive in 1998, which is significant progress if
compared to previous periods, when notably the main activity showed no profit. The main
reason for this was a decrease in the break-even point in the utilisation of seat capacity
in 1998, i.e. that the value of the utilisation of seat capacity fell, when profit was
shown. Due to this reason, even if the growth of the seat capacity utilisation indicator
stagnated, a positive result was achieved - caused by a faster growth of revenues than of
costs (yield growth, a fall in fuel prices). |
|
Ÿ Development
of break-even point, Ÿ
revenues per unit and costs per unit |
|
|
CZK/utilised
tkm - revenues,
CZK/utilised
tkm - costs
|
|
|
| 75 |
|
50 |
| 70 |
 |
45 |
| 65 |
40 |
| 60 |
35 |
| 55 |
30 |
| 50 |
25 |
| 45 |
20 |
| 40 |
|
15 |
|
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
|
|
Ÿ break-even point of load factor
in % Ÿ load factor in % |
|
Ÿ
transport revenues per unit in CZK/utilised tkm Ÿ
transport costs per unit in CZK/available tkm |
|
 |
trend |
|
|
|
| An increase in labour productivity is an
important factor to CSA's improvement in economic results. The company has always aimed at
increasing labour productivity, through both a decrease in the number of employees and an
increase in their productivity. 1998 was no exception - the number of employees fell in
this period and their productivity improved. It is also necessary to mention that some
employees moved to a subsidiary, CSA Support s.r.o., which pursues support activities,
e.g. aircraft cleaning, etc. The following graph shows the development in the number of
employees and labour productivity, related to value indicators. |
|
Ÿ Development
in the number of employees Ÿ
and labour productivity |
|
|
| 4200 |
|
2,8 |
| 4100 |
 |
2,6 |
| 4000 |
2,4 |
| 3900 |
2,0 |
| 3800 |
1,8 |
| 3700 |
1,6 |
| 3600 |
1,4 |
| 3500 |
|
1,2 |
|
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
|
 |
number of employees |
 |
productivity in operating revenues/employee |
|
|
trend |
|
|