Czech Airlines filed for reorganization in the Municipal Court of Prague

Date 28.2.2021

Prague, 26 February 2021 – Czech Airlines (CSA) filed today for reorganization according to the Insolvency Act in the Municipal Court of Prague. The application for reorganization was filed due to the termination of the extraordinary moratorium and after exhausting all possible solutions to resolve the challenging financial situation caused by the global crisis in aviation due to the COVID-19 pandemic. The aim of the reorganization process is to save the company and to select the best possible solution for creditors.

Prior to COVID-19, CSA was a profitable company. As a consequence of the pandemic and the related extraordinary travel restrictions implemented by governments globally, CSA´s payment reputation was challenged significantly.  Despite recommendations of the European Commission and the International Air Transport Association (IATA), CSA did not receive any financial support from the government as opposed to its direct competitors have received such support from their respective governments pursuant to EC recommendation and, thus, the airline is confronted with unequal and unfair competition.

The Czech state refused to participate in the rescue of CSA being the fifth oldest airline in the world, despite the fact that the shareholders declared their readiness for financial support to CSA.

Since 28 August 2020, Czech Airlines and its parent company Smartwings have been requesting the Czech government to implement the “COVID-air transport” compensation program similar to other government schemes, such as COVID – BUS, COVID – accommodation, or COVID – tourism. CSA and Smartwings have further requested the Czech government to provide financial support to cover 7,198 canceled flights during the state of emergency in the period between14 March 2020 and 24 May 2020 during which CSA was forced to suspend its operation. The justification, as per which financial support or launching any compensation scheme designed for a single company is not possible, lacks logic and is in a direct contradiction to support provided to airlines in other states.

The parent company Smartwings is addressing the current situation under the regime of the regular moratorium with the support of its creditors. The operation of both companies continues uninterruptedly and CSA and Smartwings operate all flights as scheduled as well as both airlines resume the operation on further routes subject to the epidemiological situation and travel restrictions imposed by the relevant countries.

Both companies are planning to address the situation within a common concern solution which will lead to their rescue and is more favorable for the creditors. The proposed reorganization is the last option to save the company unless the approach of the Czech government is reconsidered.

The airline industry is one of the most adversely impacted industries by the COVID-19 pandemic outbreak. Due to the coronavirus crisis, CSA and Smartwings had to terminate more than 600 employee contracts and implemented several restructuring measures.

CSA was supposed to deploy the operation of the most modern and efficient aircraft, Airbus’s new generation, by the end of 2020. The company’s strategy assumed the expansion of destinations and route networks, including the long-haul operation.

As a consequence of the state of emergency declared and the extraordinary measures implemented due to the new coronavirus spread, CSA has suffered a loss of CZK 1.57 billion and an unprecedented drop in the company´s revenues to about 20% of the previous year.

 

These are the financial results as from Wikipedia.

CSA/ACE

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.


TOP Interviews

Catalyst =  20% lower consumption & 10% higher power for Eurodrone

Catalyst = 20% lower consumption & 10% higher power for Eurodrone

Date 30.3.2022

fl_en|fl_cs

Catalyst – 100% European development without any US licenses. Ecologically more effective thanks to 20% lower consumption and 10% higher power. This means three more hours of time in the air,  which can be decisive in various defense actions and even save lives.     Within a few weeks, Airbus Defense and Space will have […]

TUNGSRAM: innovation is in our bloodstream

TUNGSRAM: innovation is in our bloodstream

Date 6.4.2022

fl_en|fl_cs

Tungsram – an iconic name – returned to the global market in 2018 as an innovative, premium European brand with the acquisition of GE Lighting’s Europe, Middle East, Africa, and Turkey general lighting business along with the global automotive operation. Tungsram, originally established in 1896, is a brainchild of the 2nd industrial revolution – resulting […]

Our sea is in the (Virtual) air

Our sea is in the (Virtual) air

Date 8.9.2021

fl_en|fl_cs

The Path of a Czech Virtual Reality Headset into the Latest Western Fighter   Military pilots are no longer the movie hot shots seen in Top Gun or similar Hollywood blockbusters. Today, cadet pilots don’t just learn to fly but work as an operator within a network-like architecture of multiple aerial and ground elements including JTACs. […]

Another great accomplishment of the Grob G 120TP

Another great accomplishment of the Grob G 120TP

Date 16.3.2021

fl_en|fl_cs

The German Armed Forces have chosen the aircraft G 120TP to train its air force pilots at the Phoenix-Goodyear airport, Arizona. This adds one more air force in the world operating this modern trainer already and just another triumph to the company’s success story.   With more than 150 aircraft delivered to their customers already and […]

Show more

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.

More news

Saab and FMV Sign Contract for new Gripen Launch System

Saab and FMV Sign Contract for new Gripen Launch System

Date 3.5.2022

fl_en|fl_cs

Saab has received an order from the Swedish Defence Materiel Administration (FMV) for the development and integration of a new launch system for Gripen C/D and Gripen E. The order, valued at approximately SEK 400 million, was placed during the first quarter. The order includes the development and integration of a new launch system for […]

EVEKTOR REVEALS SPORTSTAR RTC WITH ROTAX 912iSc  & NEW HIGH-TECH COCKPIT AT AERO 2022 

EVEKTOR REVEALS SPORTSTAR RTC WITH ROTAX 912iSc  & NEW HIGH-TECH COCKPIT AT AERO 2022 

Date 28.4.2022

fl_en|fl_cs

The first day of Aero Friedrichshafen 2022 was opened yesterday. During Evektor´s Grand Opening Ceremony the company CEO Mr. Martin Kárník introduced a new facelift of EASA certified SportStar RTC aircraft and further direction of innovations & Evektor aircraft development.   The exhibited SportStar RTC is newly equipped with a Rotax 912iSc Fuel Injected engine providing […]

The company Aircraft Industries – LET Kunovice passes into the hands of the Czech Group OMNIPOL

The company Aircraft Industries – LET Kunovice passes into the hands of the Czech Group OMNIPOL

Date 27.4.2022

fl_en|fl_cs

The largest manufacturer of civilian transport aircraft in the Czech Republic, Aircraft Industries, is returning to Czech ownership after 14 years. On April 21st, 2022, the Russian owner and the OMNIPOL Group agreed to sell 100% of Aircraft Industries shares to the Czech company OMPO Holding. Intensive cooperation between the OMNIPOL Group and Aircraft Industries […]

Aero will deliver twelve brand new L-39NG jet trainer aircraft to the Hungarian Defence Forces Command

Aero will deliver twelve brand new L-39NG jet trainer aircraft to the Hungarian Defence Forces Command

Date 21.4.2022

fl_en|fl_cs

AERO Vodochody AEROSPACE a.s. (Aero) has signed a contract for  the delivery of twelve L-39NG jet trainer aircraft and related support services with the  Hungarian Defence Forces Command. The first aircraft will be delivered to the  customer in 2024.  The Czech manufacturer will deliver a total of twelve aircraft, with eight aircraft delivered in  the […]

Catalyst =  20% lower consumption & 10% higher power for Eurodrone

Catalyst = 20% lower consumption & 10% higher power for Eurodrone

Date 30.3.2022

fl_en|fl_cs

Catalyst – 100% European development without any US licenses. Ecologically more effective thanks to 20% lower consumption and 10% higher power. This means three more hours of time in the air,  which can be decisive in various defense actions and even save lives.     Within a few weeks, Airbus Defense and Space will have […]

US military plane Osprey down in Norway during NATO exercise

US military plane Osprey down in Norway during NATO exercise

Date 19.3.2022

fl_en|fl_cs

A US military aircraft with four crew on board is thought to have crashed in Norway while taking part in NATO exercises, Norwegian emergency services said on Friday. The US Osprey aircraft “was reported missing at 18:26 (17:26 GMT) south of Bodo” in northern Norway in bad weather, the regional emergency services said in a […]

Show more
Subscribe to our magazineRegister now