Prague - Czech authorities are planning a radical change in the operation of the Air Navigation Service (ŘLP). Transport Minister Aleš Řebíček said to Aktuálně.cz that he would like to transform the state company that manages the air navigation into a joint-stock company or limited company.

"Personally, I would prefer a company limited by shares," Řebíček said. The air navigation business made profits of CZK three billion last year.

ŘLP is a company responsible for default-free traffic in the Czech Republic's air space.

Privatization ahead?

In Czech parliament, speculations emerged that the transformation of the state company is in fact the first step towards privatization. MPs even asked the Transport Minister about this.

"I have information about possible privatization of ŘLP from the Transport Ministry. That's why it makes sense to ask the minister about it during the interpellations," Petr Rafaj from the oppositional Social Democrats said to Aktuálně.cz.

The privatization of the Prague Airport and Czech Airlines have been already approved by Czech government.

Řebíček: Air space control is a state affair

However, Řebíček denies the speculations. "No privatization is afoot, neither a partial one, nor the entire company. As for the division of the services provided by ŘLP, it remains in accord with the international standards and is still divided into three parts: Area, Approach and Tower Navigation Services. They will remain the key activities of the company," Řebíček informed during the interpellations.

Řebíček is convinced that the control over the air space should remain in the hands of the state authorities.

However, a flight school and air information service that serves flight crews are part of ŘLP too and may undergo a transformation of operation. "This is a different issue. I am in favor of transferring these activities into subsidiaries that would act on a purely market basis."

Companies whose planes fly over the Czech Republic pay certain fees. Last year, the company earned more than CZK 3.1 billion.

Currently, the seat of the firm is in Jeneč municipality near Prague. It is considered one of the most advanced navigation centers in Europe.