Bankruptcies cannot be declared for companies during the moratorium. “Obligations directly related to the maintenance of the company’s operations arising after the announcement of an extraordinary moratorium are entitled to be paid by the debtor for the duration of the extraordinary moratorium in preference to previously due liabilities,” the court said. The amount of liabilities was not disclosed by the company.
–
CSA and Smartwings informed about the request for a moratorium on Wednesday. According to spokeswoman Vladimíra Dufková, the need to use the moratorium stems exclusively from the consequences of the pandemic, which has caused the biggest aviation crisis globally. Both companies were profitable before the outbreak of the pandemic and are expected to return to profitability after it disappears. Last year, Smartwings reported a pre-tax profit of 183 million crowns. In 2019, CSA had a pre-tax profit of 79.2 million crowns.
–
“The operation of Smartwings and CSA has not changed. Both companies operate all scheduled flights according to flight schedules and continue to renew other routes depending on the development of the epidemiological situation in individual countries and travel restrictions. Smartwings Group, like other airlines, is restructuring to savings and an extraordinary moratorium is only a suitable temporary measure that gives Smartwings and CSA the necessary time to ensure the financial stability of the company in cooperation with financing banks, aircraft lessors and other creditors, “said Jiří Šimáně, Chairman of the Board of Directors of Smartwings on Wednesday.
–
Due to the declaration of a state of emergency by the government and the introduction of emergency measures related to the spread of coronavirus, Smartwings Group recorded a drop in flight performance of 95 percent in April to June compared to last year, and more than 80 percent in July and August.
–
While some airlines have received targeted assistance from their countries, Smartwings and CSA have not yet. They want to use the COVID Plus program, which was launched by the Export Guarantee and Insurance Company (EGAP) after notification by the European Commission in the second half of July.
–
Smartwings now operates flights from Prague to 25 destinations, from Brno to nine and from Ostrava to two. Czech Airlines operates flights to 12 destinations and plans to renew flights to Barcelona, Madrid, Budapest, Gothenburg, Bucharest, Brussels, Warsaw and Milan from September.
—
