CSA Czechoslovak Airlines soon bankrupt?

Yesterday, AirFrance/KLM, one of two bidders for CSA announced to quit, leaving only one company interested (Travel Service) in buying the ailing outfit. According to CZALPA, bad management is to blame for the whole issue. The company received emergency funding in June 2009 (2.5 Billion CZK), which are almost used up (1.9 Billion in August). The airline is retiring at least six airplanes (two A310 and at least four 737-400s), hoping for a miracle. No long haul operations after October 2009, except some charters. Further, the state and some banks are looking into debt issues, as the company effectively has massively more debt than value, meaning it could be forced into bankruptcy soon.
More than 800 people are made redundant, out of approximately 6000. 140 pilots will lose their jobs (out of 560).

News to follow soon. :eek:
LE

Czechoslovak? :hmm:

Yes, Czechoslovak, as many Slovak citizens are still employed there, with management functions. Therefore, Czechoslovak in order to honour their fine contribution towards building the finest airline in the world.

LE

Not any longer. They show as Czech on both the czech and english versions of their website. According to Wikipedia, the change happened in May 1995 at the time of the break-up.

SFS

Does it really matter ?
If they are Donald Ducked they are Donald Ducked regardless of the nationalities involved in management, having a CEO from planet Zog doesn't protect against bankruptcy :rolleyes:

It does matter for them, believe me. Could we call BA Scottish Airlines just because of the financial problems???

...And apparently, yesterday the CEO had a little "talk" with government officials..His successor standing by to take over the helm. People, not connected to aviation, discussing online are mostly blaming the pilots for being "overpaid", and therefore to blame :rolleyes:
Rumours have it, that AF/KLM stepped back due to the "working contracts" of pilots. All I can say is SORRY folks..guess soon the pilots will be wearing a shirt saying "I AM A PILOT, I BANKRUPTED AN AIRLINE - CAN YOU STILL LOVE ME?":E
LE

Anyone know of ATR jobs around?

SFS,
no idea about the managements issues of CSA, but if you mean break-up as division of former federative republic, you're almost 2 and half year behind the political events.

For others, in CSA, the S used to mean Slovak.
I presume you guys wouldn't follow the name changes in former bus/coach company called CSAD. Well, after 1993, SR had to do with dropping C, leaving SAD, CR obviously didn't have to and S suddenly translated as 'state'. No point doing 'rebranding' per se.

CSA changed its logo while ago - more graphic, in line with trendy designs.

LE obviously knows more background stuff. I'd feel sorry for all the employees. As for pilots, it'd be very dire predicament these days as CSA is major aviation employer of flight crew in CR. The 'business' for CSA didn't become better with Tomi Tour's bankruptcy either.

No management issues at the company. Just professionals and aces. What about this one; Former CFO resigned recently (was-asked-to-leave), new one joins (Mr. H.), and this poor guy got the job after they fired him from a company called ECM for poor performance. He screwed up so much, the company got into real trouble.

The VP-FLT OPS is a junior F/O, having two years of flying experience prior getting the VP job. Had to get special approval from the CAA, as he did not have an ATPL then.

VP-GND OPS went to Russia to get his degree in economics, prior to 1989 one has to add. He seems to lack common sense in general, not mentioning his managerial ability, as everyone thinks he is a clown.

Current CEO never held any top management position, he served as middle manager for several companies, one of them (a bank) went almost bankrupt.

The VP marketing told people five months ago about the imminent ("they have maximum two weeks before closing down") demise of LOT Polish airlines, providing a chance to increase business with Poland.

Issues? No, certainly not :E.

LE - still looking for that ultimate ATR job around!

It's a red herring with the name change...LE's fine sense of humour based on the fact that we have at least a third of the pilots with a Slovak background. Nevertheless, all else correct. May I add that the CEO has always been politically appointed. The state, as an irresponsible owner, has always reserved the cushy jobs for the chosen few. We've had the apartchiks, we've had the former minister of defence and now we have a slash-n-burn fella whose legacy will be a scorched earth policy. True to form, as a crisis manager he has been at the helm for less than three years, and now we actually have a crisis. Just as forecast. By selling everything that wasn't nailed down, some of it to dubious owners, cargo terminal comes to mind..the current CEO managed to alienate just about everyone in the company. The ones that still toe the party line are forced to do so with communist type propaganda and tactics. The only thing missing is the Kool Aid.

...shall we consider bringing back the good ole Gong Show?

BTW Pilots union declared readiness to go on strike today, after further attacks and a demand from the CEO to cut back wages and benefits by 30 percent.

Czech Airlines struggle to agree upon a final restructuring plan to help the company emerge from its dismal financial state. The supervisory board estimated the company will end 2009 with a loss of 3 billion Kč (appr.116 million €). At the meeting on Oct. 19-20, CSA chairman Radomir Lasak has been replaced by Mr. Miroslav Dvorak.

Interestingly enough, Mr. Dvorak is also the chief executive of Prague airport operator Letiste Praha Ruzyne, both are state-owned. This appointment has fueled some speculations that doing so the carrier is trying to get some advantages at its base airport or even attempting to merge with Prague Ruzyne to solve the financing problems.

So which airlines are now in the running to take over CSA ?? I heard Travel Service had a good chance.....

The Czech Government have decided not to privatise: see here (http://atwonline.com/news/other.html?issueDate=10%2F27%2F2009) and elsewhere in the media. Doesn't seem an entirely satisfactory outcome...