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.
LE