On March 10, the Prague City Court launched the bankruptcy proceedings of Czech Airlines, which was initiated by the airline itself on February 26.
At the first meeting, the court appointed Inskol and the temporary credit committee, which included Czech Airlines Technics, one of the largest banks in the Czech Republic, Česká spořitelna, and Air Word Services, as the bankruptcy trustee.
With the help of the bankruptcy process, Czech Airlines expects to reorganize and continue operations. The airline’s management sees this as a way out of the situation, as otherwise it will lead to the loss of a brand with a 100-year history and will not cover all creditors’ claims.
To date, Czech Airlines has completely withdrawn local ATR 72 turboprop aircraft from the fleet, leaving only three sides: one A319, A320 and Boeing 737, as well as reducing the route network.
Among the important routes, the airline named the lines connecting Prague with Kiev, Moscow, Paris, Amsterdam. First of all, Czech Airlines expects to keep them.
Today’s debts of the Czech airline are estimated at 1.8 billion Czech crowns ($ 82 million). The total debt to service providers is 800 million Czech crowns, another 1 billion Czech crowns – to passengers whose flights were canceled.