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Czech Airlines files for reorganisation over Covid woes

Published : Sunday, 28 February, 2021 at 12:00 AM  Count : 59

PRAGUE, Feb 27: Struggling Czech national air carrier Czech Airlines (CSA) said Friday it had filed a proposal for reorganisation with a court in line with the insolvency law.
"Until the coronavirus crisis, CSA was a profitable company that became insolvent because of the Covid-19 pandemic and related restrictions," CSA said in a statement.
The airline, a unit of the Prague-based Smartwings group, is under a moratorium protecting it from creditors, which expires at the end of February.
The company, which is still running flights as scheduled, has complained that unlike its rivals, it has never received Covid aid from the Czech government.
The airline said the planned reorganisation, which should allow the company to address its financial woes while remaining in operation, is "the last resort unless the Czech government changes its approach".
The Smartwings group including CSA has so far sacked 600 staff because of the virus.
A CSA unions official has recently told Czech media the airline may dismiss all of its remaining staff, but Smartwings spokeswoman Vladimira Dufkova said this was only a possibility.
CSA posted losses worth 60 million euros ($73 million) for 2020 as its sales slumped to 20  per cent of the 2019 volume because of the virus.    AFP

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