Smartwings and Czech Airlines ask for delay in debt repayments

Smartwings Group airlines Smartwings and ČSA (Czech Airlines) have sent a proposal for an extraordinary moratorium, in other words a deferral of debts repayments, to the Municipal Court in Prague. The two companies announced the move in a press release on Wednesday, stating that new legislation, also known as Lex COVID, enables them to do so.

The official statement says that the coronavirus pandemic has created the greatest crisis in the history of air transportation. It highlights that both companies were profitable before the pandemic and expect to return to profitability after the situation settles down. The two companies say that the extraordinary moratorium will help ensure a long term solution to the situation that works for all stakeholders (creditors, staff and clients).