Two powerful government ministers have now spoken in favor of taking a position in Smartwings, the airline that owns Czech Airlines, as the pandemic’s impact on the international travel sector deepens. Transport minister Karel Havlíček told the daily Lidové noviny that it was a last resort, but would be preferable to watching someone else buy the company in bankruptcy. Finance Minister Alena Schillerová spoke in favor of the idea in weeks ago. Smartwings is owned by a combination of local business magnates and the Chinese state conglomerate Citec Group, which holds 49 percent of Smartwings. Smartwings director Roma Vik claims that Citec could be willing to sell its share in the company for a symbolic fee of CZK 1. Not that the state would get the company for free, since Vik says a cash injection of CZK 2.5bn is necessary to get business moving again.
Havlíček said “We’re not going to interfere in the ownership relations in Smartwings. But we realize that the economic situation of the company is poor because of the coronavirus. We’re looking for a solution for Smartwings, ideally on the basis of guarantees or loans. If there’s interest in transferring shares, we’re prepared to negotiate.”
