Turkish low-cost carrier Pegasus Airlines has completed its acquisition of Czech Airlines (ČSA) and the Smartwings Group, marking a major expansion of the airline’s presence in Central Europe.
The transaction was completed on October 1, 2026, after Pegasus received all required regulatory approvals and fulfilled the conditions needed to close the deal. Smartwings spokeswoman Vladimíra Dufková confirmed the completion.
Pegasus agreed in December 2025 to acquire Czech Airlines and its subsidiary Smartwings in a transaction valued at €154 million, including related receivables and the companies covered by the deal. The agreement was made with Czech investment company Prague City Air and was subject to regulatory clearance.
Despite the change in ownership, passengers will not see an immediate disappearance of the Smartwings brand.
Smartwings said it will continue operating under its established brand, retaining its day-to-day operations, customer relationships and service delivery. Pegasus and Smartwings are therefore expected to operate as distinct brands rather than immediately combining their passenger-facing identities.
The Czech Airlines name also remains part of the group. ČSA had already been transformed into a holding company, with Smartwings taking over its flight operations in 2024. The acquisition therefore gives Pegasus control of both the Smartwings operation and the Czech Airlines corporate/brand assets.
Smartwings currently operates scheduled and charter services, as well as private/business aviation flights, and serves 80 destinations in 20 countries. The company describes itself as the largest Czech airline.
The acquisition required scrutiny from the Czech Office for the Protection of Competition (ÚOHS).
The regulator approved the transaction after Pegasus offered a remedy involving the transfer of part of its summer-season slots on the Prague–Antalya route to another airline. ÚOHS identified the route as the principal competition concern because the combined group would have held a very high market share, potentially reducing competitive pressure.
The remedy is designed to allow another carrier to obtain suitable slots at Prague and Antalya airports and operate competing scheduled service between the two cities.
The acquisition significantly increases the scale of Pegasus' European operations.
Pegasus, founded in 1990, adopted its low-cost business model in 2005 following its acquisition by ESAS Holding. The airline now serves 161 destinations in 57 countries, including 39 domestic destinations in Türkiye and 122 international destinations.
Following completion of the transaction, Pegasus and the Smartwings Group together have a fleet of more than 175 aircraft, while their existing firm orders cover another 140 aircraft, according to Smartwings and Pegasus.
The deal consequently gives Pegasus a substantially larger operational footprint in Central and Eastern Europe, while Smartwings gains access to Pegasus' broader international network, low-cost operating experience and resources.
Pegasus CEO Güliz Öztürk said the companies could grow further together and provide passengers with more choice, while Smartwings co-founder Jiří Šimáně described Pegasus as a partner capable of supporting the group's future growth and creating long-term value.
Leadership from both airlines framed the acquisition as a strategic alignment designed to accelerate fleet expansion and international network coverage.
Güliz Öztürk, CEO of Pegasus Airlines: "Together we can grow further and offer our passengers more options than we could either alone."
Jiří Šimáně, Smartwings Co-Founder: Praised Pegasus as the right long-term partner to drive future value and sustained network growth.
Together, the newly integrated group controls a combined active fleet exceeding 175 aircraft, backed by a firm order book of 140 additional aircraft slated for future delivery.
The acquisition comes after a turbulent period for Czech Airlines.
Founded in 1923 as Czechoslovak State Airlines, ČSA became one of the world's oldest continuously established airline brands. Financial difficulties led to changes in ownership over the years, including Korean Air's entry as a 44% shareholder in 2013.
The takeover marks a new chapter in Czech commercial aviation history, following years of restructuring and ownership transitions for its flag carriers:
1923: Czechoslovak State Airlines (ČSA) is founded, becoming one of Europe's oldest airlines.
1997: Travel Service is launched, later rebranding its scheduled business as Smartwings.
2013–2018: Korean Air acquires a 44% stake in ČSA in 2013. By 2018, Travel Service (Smartwings) buys out Korean Air and state-owned entity Prisko to assume majority control.
March 2021: ČSA enters bankruptcy under debt pressure, leading to direct investment from Smartwings co-founders Jiří Šimáně and Roman Vik alongside Chinese partners (CITIC).
February 2024: Czech investor group Prague City Air reclaims full control of Smartwings by acquiring CITIC's indirect equity share.
October 2024: ČSA transitions away from its historical OK flight code, becoming the corporate controlling holding entity over Smartwings.
October 2026: Pegasus Airlines acquires 100% of ČSA and Smartwings for €154 million, bringing 28 years of independent Smartwings operations into the Turkish aviation group.
Smartwings later became the dominant shareholder, while the company underwent restructuring following severe financial difficulties and bankruptcy proceedings in 2021. In 2024, Czech ownership was restored to Smartwings, and ČSA subsequently became the holding company of the Smartwings Group.
In 2024, ČSA also stopped operating flights under its OK airline code, with Smartwings taking over the group's flight operations while retaining the Czech Airlines brand within the corporate structure.
The completion of the Pegasus acquisition now marks another major chapter in the history of the Czech aviation group.
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