The Prague City Court has declared Czech Airlines bankrupt

The company’s debts stand at CZK 1.8 billion (EUR 68 million), and the future will be clearer in June after the creditors meeting.

The Prague City Court has declared Czech Airlines bankrupt. The fate of one of the world’s oldest airlines will be decided by a court, insolvency administrators and creditors.

This is based on information published in the Insolvency Register. The company’s creditors must file their claims as soon as possible and the court called a meeting of creditors in June. The insolvency administrator is now awaiting a decision on whether the airlines should continue to operate or sell their assets.

Self-judge Petr Pacholík requested and obtained the assignment of an administrator with a so-called special permit. “According to the insolvency petition, the debtor is a major air carrier with a rich history, with revenues in the years 2016-2019 approaching CZK 10 billion per year, in 2020 amounting to CZK 1.690 billion and currently with more than 500 employees,“ Pacholík explained.

According to the insolvency petition, the debtor has around 266 creditors, mainly among suppliers, and around 230,000 passenger creditors, mainly due to non-operated flights in the past. The airline owes around CSK 800 million (EUR 30 million) to suppliers and CSK 1 billion (EUR 38 million) to passengers.