Czech Airlines (CSA), in insolvency proceedings from March, made a pre-tax loss of over CZK 105 million in Jan-Sept, and the airline is repaying its debts thanks to the sale of assets and carbon credits, according to a report of insolvency administrator Michael Sefcik.
CSA’s sales exceeded CZK 522 million at the end of Sept. The amount of money the airline has at its disposal almost doubled to CZK 270m in Sept compared to July.
The airline continues operating and there is no need to send it into bankruptcy, Sefcik said.
Based on an expert’s opinion drawn up for the insolvency court, the carrier’s loss topped CZK 2.64bn last year. The insolvency estate was valued at over CZK 172 million.
It is hard to predict to what extent the creditors’ claims will be satisfied as no reorganisation plan has been presented as yet, Sefcik said.
CSA was affected seriously by the impacts of the coronavirus pandemic. It had to cancel many flights and fired almost 300 employees last year. Its fleet comprises two planes.
In June, the court gave the green light to CSA’s reorganisation. The plan is to be drafted by its parent company Smartwings.
Source: CTK
