https://www.flightglobal.com/airline...142693.article
Czech Airlines’ insolvency petition sets out the scale of the company’s financial problems, which it partly attributes to the inability to source rescue funding from the Czech government.
The company has 266 creditors, with the total liability to suppliers amounting to Kc809 million ($37.1 million) as of 25 February, its petition to a Prague municipal court states.
But the petition, seen by FlightGlobal, adds that there is a debt of nearly Kc1 billion to “hundreds of thousands” of passengers who are owed for the cancellation of flights.
“[Czech Airlines] is unable to meet these obligations owing to a lack of liquid funds,” the petition states, adding that the company’s liabilities exceed the value of its assets.
“For this reason the [company] is also in a state of over-indebtedness.”
It is blaming the need to file the petition on a combination of the impact of the pandemic, an absence of support from the Czech government, and the competitive pressure from other better-funded carriers.
“Virtually all of the [airline’s] competitors have received significant state aid,” it says.
The petition puts the company’s revenues last year at Kc1.69 billion compared with Kc8.5 billion in 2019 and over Kc9 billion in 2018.
The company has 266 creditors, with the total liability to suppliers amounting to Kc809 million ($37.1 million) as of 25 February, its petition to a Prague municipal court states.
But the petition, seen by FlightGlobal, adds that there is a debt of nearly Kc1 billion to “hundreds of thousands” of passengers who are owed for the cancellation of flights.
“[Czech Airlines] is unable to meet these obligations owing to a lack of liquid funds,” the petition states, adding that the company’s liabilities exceed the value of its assets.
“For this reason the [company] is also in a state of over-indebtedness.”
It is blaming the need to file the petition on a combination of the impact of the pandemic, an absence of support from the Czech government, and the competitive pressure from other better-funded carriers.
“Virtually all of the [airline’s] competitors have received significant state aid,” it says.
The petition puts the company’s revenues last year at Kc1.69 billion compared with Kc8.5 billion in 2019 and over Kc9 billion in 2018.
Komentuoti: