Turkey’s Pegasus Airlines has received conditional approval from the Czech Office for the Protection of Competition (ÚOHS) to acquire Czech Airlines and, through the holding structure, Smartwings Group — a major ownership change for the Czech aviation market that will expand Pegasus’ European footprint.
The Czech antitrust authority announced on 11 September 2026 that it had cleared the transaction subject to commitments proposed by Pegasus to preserve effective competition. The principal concern identified by the regulator involves the Prague–Antalya scheduled route, where the combined group would otherwise hold a very high market share and substantially reduce competitive pressure.
Under the commitments, Pegasus will transfer part of its summer-season slots on the scheduled Prague–Antalya route to another airline, allowing a competing carrier to maintain capacity on the market. The measure is designed to prevent the transaction from eliminating an important source of competition between Prague and the popular Turkish resort destination.
The takeover dates back to 8 December 2025, when Pegasus announced an agreement with Prague City Air to acquire Czech Airlines and its subsidiary Smartwings. The transaction was valued at €154 million, including the companies and related receivables/debt obligations.
Pegasus described the investment as part of its strategy to strengthen its European presence and continue its international expansion. At the time of the announcement, completion was expected in 2026 following regulatory approvals in the Czech Republic and other jurisdictions where Smartwings operates.
The transaction gives Pegasus access to Smartwings' established Czech operation, including its Prague base and leisure-oriented network. Before the deal was announced, Smartwings operated scheduled, charter and private flights to approximately 80 destinations, with operations extending beyond the Czech Republic into Slovakia, Poland and Hungary.
The Pegasus acquisition follows several major changes in Czech aviation ownership and corporate structure.
Smartwings itself developed from Travel Service, which operated a large charter business serving Czech tour operators. Travel Service adopted the Smartwings name as part of a broader corporate restructuring in 2018.
Meanwhile, Czech Airlines — historically one of Europe's oldest airlines — went through severe financial difficulties, including restructuring during the COVID-19 period. In 2024, Prague City Air became the Czech-owned shareholder of both Czech Airlines and Smartwings.
A decisive step came in October 2024, when Czech Airlines ended its independent flight operations after more than a century of flying. Its final flight under the OK code operated on 26 October 2024, after which scheduled operations were transferred to Smartwings under the QS code. Czech Airlines subsequently remained within the corporate structure as a holding company rather than continuing as an independent operating airline.
That means the Pegasus transaction is best understood as the next stage in the consolidation of the Czech aviation group rather than the sudden collapse of ČSA.
Pegasus has previously indicated that it intends to operate the businesses under distinct Pegasus Airlines and Smartwings brands, rather than immediately eliminating the Smartwings identity.
That approach would allow Pegasus to combine its expanding international network with Smartwings' established Czech and Central European market presence. For Prague passengers, the immediate effect is therefore expected to be continued availability of Smartwings services alongside Pegasus operations rather than an overnight replacement of the Czech carrier by Pegasus.
The Prague–Antalya market illustrates the regulatory challenge created by the acquisition.
Both Pegasus and Smartwings have significant exposure to the leisure market connecting Central Europe with Turkey. Following the takeover, the combined group's presence on the route would have been sufficiently strong for ÚOHS to require a remedy.
The agreed slot transfer is intended to give another airline the opportunity to operate competing services during the summer season. This is a conventional merger remedy in aviation, where access to scarce airport slots can determine whether competitors are able to maintain or introduce services.
The Czech regulator therefore approved the transaction while attaching conditions specifically designed to ensure that the merger does not unnecessarily weaken competition on the affected route.
For Pegasus, the Smartwings acquisition provides an established European operating platform and strengthens its position beyond its traditional Turkish base.
When the transaction was announced, Pegasus operated a network spanning more than 50 countries, while Smartwings brought an established leisure network and a fleet of nearly 50 aircraft. The combined structure gives Pegasus an opportunity to expand its presence in Central Europe while retaining Smartwings' existing market relationships and operating capabilities.
The deal also represents another step in the broader consolidation of European aviation, where established national and leisure carriers are increasingly becoming part of larger airline groups.
The ÚOHS decision clears a major regulatory hurdle for Pegasus' acquisition, although the transaction remains subject to the completion of the applicable closing process and other regulatory requirements.
For Czech aviation, the deal marks another significant change in ownership following the restructuring of Czech Airlines and Smartwings. For Pegasus, it creates a stronger platform from which to pursue growth in Central and Eastern Europe.
The most visible result for passengers is likely to be a dual-brand presence at Prague, with Smartwings continuing its established role while Pegasus uses the acquisition to expand its European network.
At the same time, the Prague–Antalya slot remedy ensures that the expansion of one airline group does not come at the expense of competition on one of the market's most important leisure routes.
From ČSA's 2024 operational shutdown to Pegasus' 2026 takeover, Czech aviation is entering another major phase of consolidation — this time with a Turkish low-cost carrier at the center of the transformation.
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