CSA to Lay Off All 430 Employees

Czech Airlines told Labor Office that plans to lay off all its 430 employees. 

“I can confirm that we have received a notice of mass redundancies,” said Tereza Löffelmanová, chairwoman of the Aircraft Crews Trade Union.

According to the SeznamZprávy, Smartwings and CSA are currently under a protective moratorium against creditors. It expires at the end of February.

The air group is asking the state for help because of this. For CSA, it wants non-repayable support of 1.1 billion crowns.

According to groups, the carrier is waiting for insolvency proceedings because airlines are not entitled to support from other subsidy programs. The group is also asking the state for half a billion in compensation for canceled flights last spring.

But the state is not going to help. “We are not preparing any specific support for the Smartwings Group,” said Minister of Transport and Industry and Trade Karel Havlíček.

Last summer, CSA announced a plan to reduce the number of employees by more than 300 by February this year.

CSA recorded a loss of about 1.5 billion crowns last year. In addition, they do not have a leasing company that would support them, as happened in the case of Smartwings.

Smartwings and Czech Airlines employ 2,500 people in the Czech Republic.

At the moment, the airline is owned by Czech businessman Jiri Simane and partners, who own 50.1% of the group. The remaining 49.9% is owned by CITIC Group Corporation, a state-owned investment vehicle for China.

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 an in-flight drop performance of 95 percent in April to June compared to last year, and more than 80 percent in July and August.