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Czech Airlines has filed for bankruptcy in court

Czech Airlines (CSA) filed for bankruptcy proceedings in court on Friday in accordance with the Insolvency Act.

Czech Airlines has filed for bankruptcy in court
Yazar: Tom Roberts

Yayınlanma: 26 Şubat 2021 21:30

Güncellenme: 18 Kasım 2024 00:13

Czech Airlines has filed for bankruptcy in court

The Czech national air carrier Czech Airlines (CSA) filed for bankruptcy proceedings in court on Friday in accordance with the Insolvency Act. The airline, with a history of almost 100 years, stated in a statement that it was a for-profit company until the crisis caused by the new coronavirus. But due to travel restrictions to stop the pandemic, COVID-19 has become insolvent. CSA, a subsidiary of the Smartwings Group, is subject to a moratorium on creditor protection. However, it will expire at the end of February. The company, which is still operating according to plan, complained that, unlike its rivals, it never received help from the Czech government from a program for companies affected by the corona crisis. The airline said the planned reorganization, which should allow it to resolve its financial difficulties while remaining in business, is "the last resort unless the Czech government changes its approach." So far, the Smartwings Group, including CSA, has laid off 600 employees for the coronavirus. A representative of the CSA trade unions recently told the Czech media that the airline could lay off all the remaining employees, but Smartwings spokeswoman Vladimíra Dufková said that this was only a possibility.
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