Czech carriers apply for protection to stabilise finances

Czech operator Smartwings Group has formally sought temporary creditor protection to buy time to achieve financial stability during the air transport downturn. Smartwings Group, which includes both Smartwings and Czech Airlines, says it has filed with a Prague court for an extraordinary moratorium. The temporary measure provides space to negotiate with banks, aircraft leasing companies and other creditors to find a financing solution which protects the airlines at a time when their revenues have been depleted. “We believe that the steps we are taking today will help us to successfully overcome this unprecedented crisis,” says Smartwings chairman Jiri Simane. He says loan guarantee applications are “complicated and lengthy” and the moratorium provides time to find a sustainable financing plan that will benefit all parties including creditors, employees and passengers. “We are exploring all potential financing options to ensure business continuity of both companies,” says Simane.<br/>