General

Czech Airlines files for reorganisation over Covid woes

Struggling Czech national air carrier

Czech Airlines (CSA) said Friday it had filed a proposal for reorganisation

with a court in line with the insolvency law.

“Until the coronavirus crisis, CSA was a profitable company that became

insolvent because of the Covid-19 pandemic and related restrictions,” CSA

said in a statement.

The airline, a unit of the Prague-based Smartwings group, is under a

moratorium protecting it from creditors, which expires at the end of

February.

The company, which is still running flights as scheduled, has complained

that unlike its rivals, it has never received Covid aid from the Czech

government.

The airline said the planned reorganisation, which should allow the company

to address its financial woes while remaining in operation, is “the last

resort unless the Czech government changes its approach”.

The Smartwings group including CSA has so far sacked 600 staff because of

the virus.

A CSA unions official has recently told Czech media the airline may dismiss

all of its remaining staff, but Smartwings spokeswoman Vladimira Dufkova said

this was only a possibility.

CSA posted losses worth 60 million euros ($73 million) for 2020 as its

sales slumped to 20 percent of the 2019 volume because of the virus.

Source: Bangladesh Sangbad Sangstha (BSS)