[단독] 98-year-old Czech Airlines fires all employees… Corona bankruptcy

5th oldest airline in the world
Management difficulties caused by Corona 19 can’t stand
Last year’s moratorium application also reduced regeneration

Korean Air acquired it in 2013, after turning to a surplus
Resell to Smart Wings Group in 2018

– The Czech daily newspaper Hospodářské Noviny reported on the 24th (local time) that “the Czech Airlines headquartered in Prague has informed the Czech Employment Agency that it will fire all 430 employees.”

“We have received information on mass layoffs,” said Tereza Löffelmanová, chairman of the Czech Airlines crew union,

The Czech government offered financial support to Czech Airlines, which is suffering from management difficulties to protect the national aviation industry due to Corona 19, but the owner, Smartwings, refused. This is because the Czech government put forward nationalization as a condition.

Meanwhile, the Smart Wings Group’s profits plunged 90% last year, and the management difficulties intensified. In the end, Czech Airlines applied for an emergency moratorium (deferred or suspended) in August last year. The moratorium deadline expires on the 27th of this month.

Smart Wings Group established fiscal measures to improve the group’s financial condition and applied for a national guarantee bank loan. However, even if it receives a loan, it is said that there is no plan to put it into Czech Airlines. Accordingly, Czech Airlines is expected to go bankrupt.

However, the key question is whether the Czech government will leave the bankruptcy of the national airline. According to the analysis, bankruptcy may be avoided if the government intervenes. However, the Czech government has not come up with a policy until the moratorium deadline is approaching.

Founded in October 1923, Czech Airlines is one of the oldest airlines in the world. It is the fifth following the Netherlands KLM (established in October 1919), Colombia Avianca (December 1919), Australian Qantas (November 1920) and Russian Aeroflot (March 1923).

In 2013, Korean Air purchased a 44% stake in Czech Airlines, which was suffering from a deficit. Czech Airlines turned to a surplus in 2016, three years after Korean Air took part in management. Korean Air sold its entire stake to Smart Wings in 2018.

Staff Reporter Kim Ki-chan [email protected]

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