Czech Airlines Seeks Reorganization To Save Company

Czech Airlines wants to lay off its entire workforce. Photo: Kiefer via Wikimedia Commons[2]

What is being proposed?

The available details indicate that the reorganization proposal is for CSA to merge with its parent airline, Smartwings. Smartwings has recently made news for far more positive reasons than Czech Airlines has. Yesterday[3] it operated its first 737 Max flight since the aircraft’s grounding.

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Czech Airlines and Smartwings might merge into one under the reorganization proposal. Photo: Lumikus1 via Wikmedia[4]

No financial assistance for Czech Airlines from the Czech Republic

The government of the Czech Republic has not followed the trend of most other countries that injected massive amounts of state aid[5] into their flag carrier airlines.

CSA has not received financial assistance, and its owner, Smartwings, previously rejected state aid that was offered with the condition of a transfer of ownership. The Smartwings Group saw a 90% drop in revenue in 2020.[6][7]

Nevertheless, the airline continues to run flights as scheduled. Its parent airline, Smartwings, continues to run flights as planned too. There is no indication that either of the two will halt services next week, after CSA’s debt moratorium expires.

What do you think of this story? Do you think that 98-year old Czech Airlines will make it through its current financial issues through government assistance? Will it live to be 100 years old? Let us know what you think in the comments below.

References

  1. ^ it would be dismissing its entire workforce (simpleflying.com)
  2. ^ Kiefer via Wikimedia Commons (commons.wikimedia.org)
  3. ^ Yesterday (simpleflying.com)
  4. ^ Lumikus1 via Wikmedia (commons.wikimedia.org)
  5. ^ massive amounts of state aid (simpleflying.com)
  6. ^ Smartwings, previously rejected state aid (simpleflying.com)
  7. ^ 90% drop in revenue in 2020. (simpleflying.com)

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