Czech Airlines fighting for survival

The Czech state airline company Czech Airlines has announced massive layoffs due to a dwindling number of passengers. But that's only half the story, writes the German-language weekly Prager Zeitung: "Because just like [the German railway company] Deutsche Bahn AG, Czech Airlines is also slated for privatisation. To make the business as attractive as possible for potential investors it has got to be brought out of the red and into the black. And that can only be done through layoffs and a radical restructuring. True, it's always upsetting when people lose their jobs, but in this case it seems to be the right path to take. ... Czech Airlines will never be able to compete with big companies like Lufthansa, Air France-KLM and Singapore Airlines, so the only possibility is specialisation. And as a lone fighter it hardly stands a chance of surviving on this highly competitve market."

» more information (external link, German)
More from the press review on the subject » Corporations, » Economic Policy, » Czech Republic
All available articles from » Bernd Rudolf

» To the complete press review of Friday, August 14, 2009