ABSTRACT
In March 1992 , Ludek Hladis, the young, newly appointed manager of tariffs for Czechoslovak Airlines (CSA) , faced the challenging task of developing passenger fares that would make his state-owned enterprise more profitable and an attractive candidate for privatization. Hladis and his small professional staff of six were responsible for developing passenger fares and cargo rates for both domestic and international flights. He and his staff faced a variety of problems in making domestic pricing decisions. Founded in 1923, Czechoslovak Airlines has a long history. Like many airlines around the world, it was a government-owned enterprise from its creation. The Communist takeover of Czechoslovakia in 1948 had a considerable effect on the operation of the airline. Events in Czechoslovakia in 1989 had little effect on how CSA set its international passenger fares except for the elimination of special lower fares for citizens of Communist countries. Most countries, including Czechoslovakia, restricted domestic routes to their own carriers.
