PRAGUE: A Czech court said on Wednesday it had declared bankruptcy on struggling national carrier Czech Airlines, following a request by the company itself.
“The court calls on the debtor’s creditors who have not registered their claims yet to do so within two months at the latest,” the Prague Municipal Court said.
A specialist transport website, zdopravy.cz, said the company had debts reaching 1.8 billion Czech crowns (70 million euros, $80 million).
Czech Airlines, a unit of the Prague-based Smartwings group, said last month it had filed a proposal for reorganisation with a court in line with the insolvency law, blaming the coronavirus crisis for its financial woes.
The company, which is still running flights as scheduled, has complained that unlike its foreign rivals it has never received Covid aid from the government.
It has been forced to lay off hundreds of staff because of the virus.
Founded in 1923, Czech Airlines posted losses of 60 million euros for 2020 as its sales slumped to 20 percent of 2019 levels because of the virus.