Czech Airlines, one the oldest airlines in the world, declares insolvency.
CSA – Czech Airlines, one of the five oldest airlines in the world, today declared insolvency in a Prague court after posting a loss of 60 million euros in 2020, the entity said in a statement.
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Owned 97.7% by the private low-cost airline Smartwings, CSA had requested six months ago an extraordinary moratorium in the same court, within the framework of the new covid legislation aimed at alleviating the effects of the pandemic on companies, reported EFE.
See also: KLM Cityhopper takes delivery of their first Embraer E195-E2.
The number of passengers the Czech group – under the CSA and Smartwings brands – carried in 2020 on its own aircraft (both scheduled and charter flights) fell 83.7% from the previous year to 1.3 million travelers due to travel restrictions imposed to curb the coronavirus.
In 2018, the airline earned €10.7 million, while in 2019 it earned €0.5 million.
CSA reduced its workforce since last summer from 700 to 430 workers, and now plans to lay off the rest, according to the daily Hospodarske Noviny.
It is estimated that CSA’s customers, who purchased tickets worth 38 million euros and have not yet used them, will have to absorb this loss.
CSA airline was founded in 1923 and is one of the five oldest airlines in the world.
Photo: Alan Lebeda
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Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.