07. 10. 2009 - The Czech Airlines Supervisory Board Confirms the Management Board’s Solution for Securing Sufficient Liquidity
Prague, 7 October 2009
At its extraordinary meeting, the Czech Airlines Supervisory Board confirmed the solution of the airline’s Management Board for securing sufficient cash for the 2009/2010 low winter season and the need to carry on implementing the measures of the restructuring plan which is under way.
“The first projects to secure liquidity will be completed in November and December 2009 and in January 2010. These projects and additional measures to boost Czech Airlines’ liquidity, which were confirmed by the Supervisory Board today, will significantly strengthen Czech Airlines cash flow. If they are fully implemented, their overall contribution to the cash flow over six to nine months may amount to CZK 3.5 – 5 billion,” said Radomír Lašák.
A significant boost of the liquidity position of Czech Airlines is a separate and the most important part of the airline’s restructuring plan. The extraordinary Supervisory Board meeting today confirmed the proposal of the Czech Airlines Management Board for accelerating the projects and expanding the steps that address the issue of liquidity. This includes projects through which the Management Board will secure sufficient cash for the low season, i.e. from December 2009 to April 2010. In connection with securing cash, the Czech Airlines Management Board is currently intensively working on the following major projects:
- Ensuring external sources (new operating loans, bank loans, or a capital entry of Prague Airport).
- Preparing and implementing the sale of three B737 500 aircraft and two B737 400 aircraft and the sale of the independent Duty Free business unit.
- Outsourcing and joint venture (data centre outsourcing, joint venture of Handling and Prague Airport and joint venture of the Training Centre).
“In the summer of 2009, we prepared the fundamental restructuring steps aimed at adapting Czech Airlines’ size to the long-term reduction in demand, to boost the airline’s cash position, among other things in order to cover the costs of restructuring, and to enable those parts of the airline which have not been affected by the drop in demand to be developed. This accelerated ‘Action Plan’ was adopted by the Czech Airlines Supervisory Board on 24th August and the executive management is intensively implementing all of the individual steps,” said Czech Airlines’ President Radomír Lašák.
Czech Airlines Press Spokesperson