Czech Airlines files for reorganisation

Czech Airlines has filed for reorganisation under insolvency regulations as “the last option to save the company” unless it receives government financial support. CSA says its application to a court in Prague was necessary because an extraordinary moratorium has ended and “all possible solutions to resolve the challenging financial situation” have been exhausted. All scheduled flights of CSA and its parent carrier Smartwings will continue without interruption. CSA says its “payment reputation was challenged significantly” by the pandemic, and laments “unequal and unfair competition” owing to a lack of government support. “Despite recommendations of the European Commission and the International Air Transport Association, CSA did not receive any financial support from the government, as opposed to its direct competitors,” the airline asserts. Smartwings and CSA have asked the government to provide financial support to cover around nearly 7,200 flight cancellations when operations were suspended between March and May 2020.<br/>