Czech Airlines warns over future following record loss

26-08-2009

State-controlled carrier, Czech Airlines, warned on Wednesday that it is fighting for its very survival. Company president Radomír Lašák said in a press conference that unlike rivals, the airline has no cash reserves to cushion it from the current crisis hitting airlines worldwide. A 10 percent drop in passengers and similar fall in ticket prices has racked up a 1.8 billion crown, around 100 million dollars, loss for the airline in the first six months. It had planned for a loss of just 300 million crowns for the whole year. Mr Lašák outlined a three point programme to save the airline later in the day based upon a 30 percent cut in pilots’ pay, 15 percent wage cuts for other employees and a freeze on other benefits. If unions agreed to the deal then the current board would be willing to step down, he added.