Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the tinymce-custom-styles domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /data/web/virtuals/207702/virtual/www/domains/aero-space.eu/wp-includes/functions.php on line 6121

Warning: Cannot modify header information - headers already sent by (output started at /data/web/virtuals/207702/virtual/www/domains/aero-space.eu/wp-includes/functions.php:6121) in /data/web/virtuals/207702/virtual/www/domains/aero-space.eu/wp-content/plugins/post-views-counter/includes/class-counter.php on line 913
Czech Airlines filed for reorganization in the Municipal Court of Prague |

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

Technological Progress: Friend or Foe?

Technological Progress: Friend or Foe?

Date 9.4.2025

fl_en|fl_cs

A Conversation with Professor Bohuslav Přikryl Professor Bohuslav Přikryl, former Rector of the University of Defence and retired Brigadier General, now serves as Vice President for Research, Development and Innovation at CSG Aerospace, a division of the Czechoslovak Group (CSG). From this unique vantage point, he monitors technological developments and identifies innovations that could shape […]

Future Air Force: Preparing for the Wars Yet to Come?

Future Air Force: Preparing for the Wars Yet to Come?

Date 17.3.2025

fl_en|fl_cs

An Interview with Colonel (ret.) Petr Tichý and Major General (ret.) Bohuslav Dvořák on the Future Air Force Conference, Pilot Training, and Technologies Redefining Air Combat The world of air power is at a turning point. Drones, artificial intelligence, and next-generation fighter jets are reshaping aerial warfare. But amidst all these advancements, one element remains […]

LOM PRAHA: THE FUTURE OF AVIATION TRAINING BEGINS

LOM PRAHA: THE FUTURE OF AVIATION TRAINING BEGINS

Date 28.3.2025

fl_en|fl_cs

TRAINING PRECISION. ENGINEERING EXCELLENCE. MISSION SUCCESS. On February 10, 2025, a historic moment unfolded at Pardubice Airport. Two state-of-the-art L-39 Skyfox subsonic aircraft took to the skies for their first official training flight, marking the beginning of a new era in the training of pilots for the Czech Armed Forces. This milestone is not just […]

KC-390: Transforming Portugal’s Role in NATO and Beyond

KC-390: Transforming Portugal’s Role in NATO and Beyond

Date 24.3.2025

fl_en|fl_cs

The integration of the KC-390 has revolutionized the Portuguese Air Force (PRTAF), enhancing its versatility, reach, and operational capabilities. Paulo Martins, Coronel Piloto Aviador and Operational Coordinator for the KC-390, provides an in-depth perspective on the aircraft’s transformative impact, the challenges faced during its adoption, and its strategic importance for Portugal and NATO. How has […]

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

Technological Progress: Friend or Foe?

Technological Progress: Friend or Foe?

Date 9.4.2025

fl_en|fl_cs

A Conversation with Professor Bohuslav Přikryl Professor Bohuslav Přikryl, former Rector of the University of Defence and retired Brigadier General, now serves as Vice President for Research, Development and Innovation at CSG Aerospace, a division of the Czechoslovak Group (CSG). From this unique vantage point, he monitors technological developments and identifies innovations that could shape […]

Boeing’s 2024 Financial Struggles: A Year of Decline and Strategic Challenges

Boeing’s 2024 Financial Struggles: A Year of Decline and Strategic Challenges

Date 29.1.2025

fl_en|fl_cs

Boeing has announced its financial results for the final quarter and full year of 2024, and the figures paint a challenging picture for the aerospace giant. The company posted a 31% decline in Q4 revenues, amounting to $15.2 billion, with a net loss of $3.8 billion. The full-year performance was similarly concerning, with revenues totaling […]

Embraer Secures Contract for Two C-390 Millennium Aircraft with Undisclosed Customer

Embraer Secures Contract for Two C-390 Millennium Aircraft with Undisclosed Customer

Date 27.12.2024

fl_en|fl_cs

Expanding global interest in the next-generation multi-mission aircraft Embraer has signed a contract for the sale of two C-390 Millennium multi-mission aircraft with an undisclosed customer. This deal includes a comprehensive training and support package, as well as the supply of spare parts, marking another milestone for the aircraft’s growing international success. The aircraft will […]

C-390 MILLENNIUM: TECHNOLOGICAL MARVEL AND STRATEGIC ASSET FOR CENTRAL EUROPE

C-390 MILLENNIUM: TECHNOLOGICAL MARVEL AND STRATEGIC ASSET FOR CENTRAL EUROPE

Date 13.9.2024

fl_en|fl_cs

Boasting a maximum payload of 26,000 kg (57,320 lb) and reaching speeds up to Mach 0.8, the C-390 is designed for versatility. Its operational range extends to 2,815 nautical miles (5,210 km), and it can perform aerial refueling at speeds ranging from 120 to 300 KCAS. The C-390 is often referred to as the KC-390 […]

SHAPING THE FUTURE OF GLOBAL DEFENSE: AN EXCLUSIVE INTERVIEW WITH ADAM DRNEK

SHAPING THE FUTURE OF GLOBAL DEFENSE: AN EXCLUSIVE INTERVIEW WITH ADAM DRNEK

Date 27.8.2024

fl_en|fl_cs

Adam Drnek, the driving force behind the Future Forces Forum & Exhibition and Chairman of the Board of Future Advanced Technologies Institute, is renowned for his humility, sharp insight, integrity, and relentless drive. With a career spanning from assisting defense attachés to steering one of the most influential defense forums globally, Adam shares his hands-on […]

Navigating the Complex Landscape of Aerospace Cybersecurity & New Engine Technologies

Navigating the Complex Landscape of Aerospace Cybersecurity & New Engine Technologies

Date 7.9.2024

fl_en|fl_cs

The aerospace industry is an extremely complex and interconnected sector comprising various components, organizations, and activities related to air transport, aircraft manufacturing, and other support services. Key components of this sector include airlines, aircraft manufacturing, airports, air traffic navigation, and regulators, among others. In the past decade, digital transformation has had a profound impact on […]

Show more
Subscribe to our magazineRegister now