Czech Airlines has informed the labor exchange and trade unions of the forthcoming layoffs of all 430 employees, which is associated with huge financial losses of the carrier amid pandemic coronavirus infection. This was announced to reporters Feb. 24 by Teresa Leffelman, chairwoman of the Czech Air Crew Members Union.
“I can confirm that we have received notice of mass layoffs,” Hospodarske Noviny quoted her as saying.
According to her, the company plans mass layoffs of employees, of which the labor exchange has been notified. According to Leffelman, Czech Airlines has been severely affected by the cononavirus pandemic with aircraft and crews idling due to flight cancellations.
The company’s financial situation is critical, she said. “Czech Airlines is a joint stock company and cannot rely on financial support from the state. Leffelman added that at the end of February, the moratorium on filing bankruptcy cases by its creditors would expire.
In early February, the airline’s management appealed to the Czech government for financial support of 1.1 billion crowns (about 42.5 million euros). Soon the head of Czech Ministry of Industry and Trade Karel Havlicek said that the state was not going to provide the company with financial assistance.
“Czech Airlines” began its history on October 6, 1923, when the government of Czechoslovakia (1918-1993) passed a resolution to establish a national air carrier. It is one of the oldest airlines in the world: only the Russian Aeroflot, Dutch KLM, Colombian Avianca and Australian Qantas were founded before it.