20-Sep-2012 10:42 AM

European Commission approves restructuring aid for Czech Airlines

European Commission approved (19-Sep-2012) CZK2.5 billion (EUR100 million) in restructuring aid to CSA Czech Airlines following an in-depth investigation. The investigation found the aid is in line with EU state aid rules and the airline's restructuring plan adequately addresses the airline's financial problems. The sale of assets, significant capacity reduction and efficient cost and revenue management will ensure the airline's long-term viability without continued state support, while also avoiding undue distortions of competition. European Commission vice president in charge of competition policy Joaquín Almunia said, "I am satisfied that the revised restructuring plan now complies with our strict conditions. The aid will help Czech Airlines to become viable again while minimising its negative impact on competition in the aviation sector." Czech authorities notified their intention to restructure Czech Airlines with the help of state aid in May-2010. [more - original PR]

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