ČSA files reorganisation petition, remains in operation

Published: 01.03.2021 Related countries:  Czech Republic Czech Republic

The fifth oldest still-operating airline in the world is heading to reorganization.

Czech Airlines (ČSA) has filed a petition for reorganisation due to its inability to pay with the insolvency court in Prague. This happens after the end of the emergency moratorium and after choosing all possible solutions to the difficult financial situation caused by the aviation crisis due to the spread of COVID–19. ČSA and its parent Smartwings were unsuccessfully asking the government for establishing the compensation program COVID-Aviation. They were unable to make 7,198 flights in the period of the state of emergency from March 14 to May 24, 2020. ČSA and Smartwings have already laid off 600 employees. Both airlines still maintain their operation.

Source: ČIA NEWS, March 1st, 2021, www.cianews.cz/en
Compiled by the team of CzechTrade office in Riga.