Struggling CSA ready to lay off nearly 20% of workforce

CSA Czech Airlines confirmed in several press reports that it will reduce its workforce by around 20% as it attempts to negotiate the industry downturn.

A spokesperson was quoted in German media saying that some 860 of CSA's 4,600 employees will be let go and that the cuts will affect all areas of the company. President Radomir Lasak told Czech daily Pravo that "it has become clear we have to reduce fleet and network capacity." The job reductions are expected to occur between September 2009 and March 2010.

CSA operates 51 aircraft but suffered a 12% year-over-year passenger drop in the first quarter. It has announced the closure of its remaining transatlantic routes after the summer schedule. Five-times-weekly Prague-New York JFK flights will be operated by Delta Air Lines, with CSA codesharing from Oct. 25. The last flight operated by CSA will be Oct. 24. Its last flight from Toronto will be Oct. 14. It will ground two A310s during the winter schedule.

CSA VP-Marketing and Product Development Petr Pistelak said relying on codesharing will give the airline "more strength for medium- and short-haul routes in Europe, primarily in its eastern part, on which we can better concentrate."

Last month the carrier decided to "accelerate" implementation of measures to weather the crisis. "In spite of the emotions that will accompany the unpopular optimizing steps, we have to take those steps. The companies that remain on the market will not be those that are the most beautiful, largest and strongest, but those that are able to adapt the best and the fastest," Lasak said at the time. The "action plan" is designed to save CZK300 million ($16.7 million) this year, partially through wage reductions to 2008 levels (ATWOnline, May 4).

The Czech government launched a privatization process in January and hopes to generate around €200 million ($288 million). Air France KLM and a partnership between Unimex and Travel Service have expressed interest (ATWOnline, April 21). Progress is expected following parliamentary elections in October.