The insolvent Czech national company submitted a reorganization plan. Its creditors get a little money and get new owners. CSA also plans to expand its fleet again.
Just a few months ago it seemed like it was going to fall apart. Airbus and other creditors had billions of dollars in claims against the insolvent Czech National Line Presenter. Czech Airlines, founded in 1923, was in danger of extinction.
However, the insolvency administrators continued to negotiate, as a result of which Airbus removed the order for four A220-300s and three A321XLRs from the books. The CSA was able to continue flying. The reorganization plan has now been submitted. The airline acquires a new shareholder in the Prague Aviation City. Behind him is the majority owner of Smartwings Jiří imáně and President Roman Vik. Citic, the Chinese sovereign wealth fund, the minority owner of Smartwings, is no longer involved with the CSA.
Satisfying creditors with new money
In return, the new owner will help Prague City Air CSA with your loan of 140 million kroner, or the equivalent of 5.7 million euros. The company will be temporarily funded from this. However, the airline can satisfy the creditors with the most money.
Two of them got 50 percent of their claims, real estate firm Quiver Beta (claims worth 55 million kroner) and Lufthansa Technik (3 million kroner), the rest is only 4.6 percent. Airbus has the allegations according to the newspaper Zdobravi withdrawn. The Canadian Space Agency has pledged its only aircraft, the Airbus A319, as security for the loan.
Gradual expansion of the fleet
CSA plans to expand the fleet in the coming years. In addition to its own A319 and a leased A320, five aircraft from sister company Smartwings are due to be added from 2023. At the end of next year, the Czech national airline also wants to lease four Airbus A220s on the long-term – which machines it wants to buy one day What, Zdopravy wrote.
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