CzeCh airlines - České aerolinie

REPORT OF THE SUPERVISORY BOARD OF CZECH AIRLINES
FOR THE YEAR 2010
annual report 2010 | 39
Furthermore, the Auditor, in accordance
with the International Auditing
Standards and related application
clauses of the Chamber of Auditors
of the Czech Republic, checked that
the consolidated Annual Report is
congruent with the consolidated and
unconsolidated financial statements
that were compiled in accordance with
the accounting regulations of the Czech
Republic and form part of this Annual
Report. The information given in the
consolidated Annual Report is, according
to the Auditor’s Opinion, in all
significant respects congruent with the
aforementioned financial statements.
The Supervisory Board of Czech Airlines
reviews the audited unconsolidated and
consolidated financial statements for
2010, compiled in accordance with the
accounting regulations of the Czech
Republic, and recommends that the
General Meeting of Czech Airlines approve
them.
The Supervisory Board of Czech Airlines
also reviewed the proposal of the Board
of Directors of Czech Airlines on the distribution
of the Company’s profits and
recommends that the General Meeting
of Czech Airlines approve it. The
Company’s profits for 2010, determined
according to Czech law, came to CZK
76,159,400.43. 5% of the profits, i.e. CZK
3,807,970.02, will be allocated to the
Reserve Fund, and the remaining part,
equalling to CZK 72,351,430.41, will be
transferred to the account “Uncovered
Losses of Previous Years” to cover those
losses.
The Supervisory Board of Czech Airlines
acquainted itself with the scrutiny of the
consolidated Annual Report for 2010.
The Report contains information on
important matters that characterize,
materially and financially, the economic
results achieved in 2010. The
Supervisory Board states that the Board
of Directors of the Company is responsible
for the accuracy of data contained
in the Annual Report. At the same time
the Supervisory Board takes note of the
Opinion of the Auditor in this regard,
i.e. that the information contained in the
Annual Report describe facts that are
also represented in the financial statements,
and that it is in all significant
respects in conformity with the relevant
financial statement. On the basis of
these facts, the Supervisory Board recommends
that the General Meeting approve
this consolidated Annual Report.
In the past period, the Supervisory Board
repeatedly and systematically supervised
the implementation of the individual pillars
of the Czech Airlines Restructuring
Plan, approved by the extraordinary
General Meeting on 18 November 2009.
At its meetings, it asked for presentations
by responsible employees, as well
as comments and studies from the
Company’s Board of Directors on the
different streams of the Restructuring
Plan. Among the issues were the reduction
in the size of the Czech Airlines
network and the related simplification of
the fleet, as well as the reduction of fixed
costs, the reduction of the costs base
in a number of categories, an increase
in profits through greater effectiveness
of the revenue Management process,
the strengthening of price differentiation,
more effective coordination with
code-share partners and an increase in
secondary income through own sales
and revenue arising from cooperation
with third parties.
At its meeting of 27 April 2011, the
Supervisory Board decided – over and
above the scope of its regular scrutiny
– to have the fulfilment of the goals
set by the Restructuring Plan audited
by an external Company, so that Czech
Airlines shareholders can be provided
with concrete and independent results of
the implementation of the Restructuring
Plan for the past period.
Prague, 13 May 2011
Prof. Ing. Michal Mejstřík, CSc.
Chairman of the Supervisory Board of
Czech Airlines