Korean Air commits to increasing capital in ČSA
Czech Airlines has a received a commitment for financial support from its biggest shareholder Korean Air to boost its efforts to stabilize the loss-making company. Korean Air has conditioned the promised increase in capital on the full implementation of a restructuring plan unveiled in September. The plan involves selling assets and shrinking the company’s fleet and workforce. ČSA has announced plans to lay-off a third of its staff including 77 pilots and close to 200 flight attendants. Korean Air acquired a 44 percent stake in Czech Airlines in 2013 from the state after the government had made several attempts to sell the airline. The Czech state holds 54 percent shares and the insurance company Česká Pojistovna 2.2 percent.