UPDATE 1-Czechs pick advisers for airline, airport sales

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The Czech government on Friday chose advisers for the planned sales of the state's stakes in the flagship carrier Czech Airlines (CSA) and in the company operating the Prague international airport.

Credit Suisse will advise on the best way to sell the airport, while Deloitte Touche Tohmatsu [DLTE.UL] will advise on the airline sale, the finance ministry said.

The government approved in mid-September a plan to convert state-owned Prague Airport into a newly created joint stock company. By March it should discuss how to proceed. It wants to complete the sale by the end of next year.

The government, in need of extra revenues to finance road construction, also wants to sell the airline, which is undergoing a restructuring programme after heavy losses due to a rapid expansion in its fleet and services in recent years.

"Credit Suisse Securities (Europe) Ltd. ... was selected to perform an analysis of desirability, extent and method of privatisation of the state's stake in the Letiste Praha (Prague Airport) joint stock company," the ministry said in a statement.

"Deloitte Advisory ... was selected to assess the effectiveness of the stabilisation programme and analyse the ways of completing the privatisation of Czech Airlines," it added in a separate statement.

Government officials have said a stock market float was an option for the airport sale.

The airport had 11.6 million passengers last year and made a net profit of 972 million crowns ($53.79 million) ($49 million) on revenue of 5 billion crowns.

The airport's director Miroslav Dvorak was quoted as telling the daily Hospodarske Noviny in an interview on Friday that it had attracted interest from dozens of potential bidders, including major airport operators and financial investors.

CSA, a member of the Sky Team alliance which also includes Air France-KLM , Delta Air Lines and Alitalia , expects a small profit this year after a 397 million crown loss last year.

The airline, with a fleet of 50 mostly mid-range planes, has sold off some assets and cut costs under the 2006-2008 restructuring plan. (Reporting by Marek Petrus, editing by Rory Channing) ($1=18.07 Czech Crown)

Keywords: CREDITSUISSE CZECH/

[PRAGUE/Reuters/Finance.cz]