PRAGUE, Aug. 26 (Xinhua) -- Smartwings and Czech Airlines (CSA), both under Smartwings Group, filed a petition with the Municipal Court in Prague to declare a moratorium on debt repayments, the company said in a press release on Wednesday.
The companies will take advantage of the so-called Lex COVID Act to defer its debt payments after being severely impacted by the coronavirus pandemic.
Smartwings Group said in the release that the pandemic has greatly affected the air transportation industry in general and that both companies were profitable before the pandemic, expecting a return to profitably soon.
As a result of a state of emergency declared by the Czech government and the introduction of extraordinary measures in connection with the spread of the new coronavirus, the Smartwings Group recorded a 95 percent drop in flight performance between April and June 2020 and more than 80 percent in July and August.
"Smartwings Group, like other airlines, is undergoing restructuring leading to savings, and an extraordinary moratorium is only an appropriate temporary measure that gives Smartwings and CSA the time it takes to ensure the company's financial stability in cooperation with financing banks, aircraft lessors and other creditors. We believe that all the steps we take will enable us to successfully overcome this unprecedented crisis," said Jiri Simane, Chairman of the Board of Smartwings Group.
According to the Group, the deferment of debt repayments will help reach an agreeable conclusion for creditors, staff and clients.
Smartwings Group is the largest airlines in the Czech Republic. The Group includes eight companies and uses two brands, Smartwings and CSA, in air transport.
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