European Commission has approved €100 million in state aid
The European Commission has approved €100 million in state aid to state-owned Czech Airlines. The condition is that restructuring must be implemented, which the commission described as being sufficient and having a reasonable chance of success. The plan is for the Czech government to give its support through a debt-to-equity swap via a €100 million loan from state-owned company Osinek, the majority owner of Vitkovice Steel.
The European Commission said in a statement: “A significant capacity reduction, efficient cost and revenue management and the sale of assets should ensure the company’s long-term viability without continued state support, whilst avoiding undue distortions of competition.”