- Pegasus
Airlines, a Turkish low-cost carrier headquartered in Istanbul and centred on
Istanbul Sabiha Gökçen Airport, has acquired a Central European airline
platform through the purchase of Czech Airlines (ČSA) and the Smartwings Group.
AeroMorning – John Smith – October 1, 2026
On October 1, 2026, Pegasus announced the completion of the
acquisition after obtaining all required regulatory approvals. The transaction
had originally been announced on December 8, 2025, at a total value of €154
million, including the two companies and related receivables. Pegasus said the
strategic investment was designed to strengthen its presence in Europe and
support its continued global expansion.
The acquisition gives Pegasus 100% ownership of the
Smartwings Group through its subsidiary Pegasus Europe B.V. The transaction was
completed after regulatory approvals in the Czech Republic, Türkiye and other
countries where the group operates. Czech competition authorities required
Pegasus to transfer a number of summer slots on the Prague–Antalya route to
another airline to preserve competition.
1. Why Were Czech Airlines and Smartwings Sold?
The transaction is not a conventional takeover of two
independent airlines. Czech Airlines ceased operating as a separate airline in
October 2024, with its operations consolidated into Smartwings. ČSA
subsequently remained as the holding company controlling Smartwings. Two former
ČSA A320s continued to operate under the Czech Airlines brand and code, while
Smartwings became the group’s operating airline.
The sellers, Prague City Air and Unimex Group, had built and
developed the airlines for almost 27 years. In its December 2025 announcement,
Pegasus quoted shareholder and Smartwings co-founder Jiří Šimáně as saying that
the decision to sell followed years of development achieved with limited
financial resources and without the external government support typically
received by airlines. The shareholders said Pegasus had the potential to
further expand and strengthen the businesses.
The sale therefore appears to represent a strategic change
of ownership rather than the purchase of a standalone flag carrier: Pegasus is
acquiring an established Central European leisure-airline platform, while the
historic ČSA brand survives within the group.
2. The Fleets and Networks
Before the acquisition, Pegasus operated 129 aircraft as of
March 31, 2026: 120 Airbus aircraft—six A320ceo, 46 A320neo and 68 A321neo—and
nine Boeing 737-800s. Its network covered 160 destinations in 56 countries in
2025. Pegasus also has a firm order for 100 Boeing 737-10s, with options for
another 100.
Smartwings had 49 aircraft in June 2026: 23 Boeing 737-800s,
14 737 MAX 8s, two 737-900ERs, four Airbus A220s, two A320s and four business
jets. Smartwings adds a Central European platform centred on Prague Václav
Havel Airport, with additional operations from Poland, Slovakia and Hungary.
Its network covers around 80 destinations, with a particularly strong leisure
presence and extensive cooperation with tour operators such as TUI.
Czech Airlines itself no longer has a separate operating
fleet. Its remaining aviation assets and brand are integrated into the
Smartwings structure.
Following the acquisition, Pegasus and Smartwings together
have more than 175 aircraft and around 140 additional aircraft on order,
creating a considerably larger airline group.
3. Why Pegasus Wants the Combination
Pegasus brings a large low-cost operation centred on Istanbul
Sabiha Gökçen, with a broad network linking Türkiye, Europe and surrounding
markets. Smartwings adds an established Central European platform centred on Prague
Václav Havel Airport, with strong leisure traffic and extensive relationships
with tour operators.
The two businesses therefore have complementary geographical
strengths. The acquisition gives Pegasus an established Central European base
from which to develop its European footprint, while Smartwings becomes part of
a much larger international airline group with greater resources and growth
capabilities.
Separately, the combination increases the group’s overall scale
and purchasing power. This should strengthen its negotiating position with
suppliers, potentially generating benefits across areas such as aircraft,
engines, fuel, maintenance and other services.
Pegasus explicitly said that the two airlines would retain distinct
brands, with Smartwings continuing its existing operations while the companies
combine expertise and resources.
4. Advantages and Challenges of the New Group
The potential advantages include greater scale, a broader
European network, diversification across leisure and low-cost traffic, stronger
purchasing and negotiating power and additional growth opportunities. The
combination also gives Pegasus a ready-made Central European platform instead
of having to build one organically.
But the structure also creates challenges. Pegasus and
Smartwings operate different business models and fleet mixes: Pegasus is
heavily Airbus-focused, while Smartwings is predominantly Boeing 737-based,
with A220s and A320s also in the fleet. Maintaining two brands and multiple
operating certificates adds complexity rather than eliminating it.
There is also a significant integration challenge. The group
must extract the benefits of scale without undermining Smartwings’ existing
charter relationships, while managing a much larger fleet, workforce and
network. The Prague–Antalya remedy imposed by Czech competition authorities
also demonstrates that the enlarged group will face competition constraints on
overlapping routes.
The result is therefore not simply a larger Pegasus. It is
the creation of a multi-brand airline group combining a Turkish low-cost
carrier with a Central European leisure-airline platform, with the potential
benefits of scale balanced against greater operational and organisational
complexity.
