Photo: SMARTWINGS Following a December 2025 PassportNews report, the giant deal in the European aviation market is moving forward. The Czech Competition Authority has approved the acquisition of Czech Airlines and control of Smartwings by Turkish aviation group Pegasus Airlines, subject to conditions designed to maintain competition on routes between the Czech Republic and Turkey.
The authority's main condition is the transfer of a number of slots during the summer season to a competing operator to operate direct flights on the route between Prague and Antalya.
The approval was published on September 11, 2026, after the decision was made in late August. However, the decision is not yet final, as the appeals period has not yet ended.
Smartwings also had a significant Israeli chapter. As early as November 2022, Israir had submitted a final offer to acquire the Czech company at a value of approximately €44 million. Later, in March 2023, it was reported that Israir had reached agreements to acquire 51% of the shares held by the Czech shareholders, while completion of the move also depended on agreements regarding the remaining shares held by the Chinese side.
Negotiations continued in various incarnations for more than two years. After the Czech owners purchased the Chinese share, Israir announced in 2024 that it would renew talks, saying it intended to enter accelerated negotiations to complete the acquisition.
However, on July 8, 2025, Israir had finally decided to end the negotiations. This followed the Czech shareholders' announcement of changes to the deal terms. The Israir board of directors decided not to move forward with the updated terms and to examine other alternatives for the company's expansion.
It is particularly interesting that in June 2025, Israir CEO Uri Sirkis said in an interview with PassportNews that he regretted that the company did not acquire Smartwings, and even added at the time that from his perspective, “the last word was not said there.” About six months later, it was Pegasus that announced the acquisition deal for 154 million euros.
The regulatory review began in May and focused on the overlap between Pegasus and Smartwings' operations on direct flights between Prague and Antalya during the summer season.
The Competition Authority found that after the transaction is completed, the merged group is expected to hold a particularly high market share on the route. The Authority noted that other airlines that had expected to enter the route have not yet done so, and therefore completing the transaction in its original form could have significantly reduced competition.
To address the concern, Pegasus proposed transferring slots to a competing operator. This would allow another airline to obtain suitable takeoff and landing times at Prague and Antalya airports and operate direct flights between the destinations.
In December 2025, Pegasus signed an agreement to acquire full ownership of the Smartwings Group, which includes Czech Airlines, Smartwings and their subsidiaries.
The transaction value was set at 154 million euros, including the assignment of debt obligations of the target companies to existing shareholders. According to Pegasus' report to the Turkish Stock Exchange, the consideration may be adjusted upon completion of the transaction.
Pegasus announced at the time of signing the agreement that it plans to complete the acquisition during 2026, subject to receiving the required approvals in the Czech Republic and other countries in which the Smartwings Group operates, as well as meeting the conditions required for the transfer of the shares.
To carry out the transaction, Pegasus decided to establish a subsidiary in the Netherlands, through which the shares of the Smartwings Group will be held.