From the end of August 2020, the CSA was subject to a moratorium on creditors that expired in February. At the end of last month, the company filed a restructuring application with the bankruptcy court, which, inter alia, assumes the dismissal of all 430 people still working at the CSA. In the liabilities reported by the carrier, amounting to almost EUR 70 million, more than half are the costs of unpaid or unused plane tickets.
One of the world’s oldest airlines, which was established in 1923, was made bankrupt by the coronavirus crisis when it had to cancel a large number of connections.
Due to the loss of the carrier already in 2020, it laid off around 300 employees. The crisis has also affected CSA owner Smartwings, which is benefiting from a moratorium to protect it from creditors and negotiating loans with banks. The loans may be secured with funds from the government’s support program for the economy.
The Czech government did not extend the aid program to air carriers. After the next court hearing scheduled for June, the creditors’ meeting will decide about the company’s future. Czech national carrier has not suspended flights. After the ATR planes were withdrawn from service in March 2021, it has three jets: Airbus A319 and A320 and Boeing 737. Flights to Warsaw are operated by LOT.
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