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Czech Airlines Wins EU Authorization for Restructuring Loan

CSA Czech Airlines won European Union authorization to receive government restructuring aid after it sold assets, reduced capacity and gave up landing slots at European airports.

The European Commission said it approved a 2.5 billion-koruna ($130 million) loan to the airline from state-owned company Osinek SA after Czech airlines agreed to a five-year restructuring plan that will also see it sell subsidiaries, aircraft and other assets and secure a private bank loan for an aircraft lease.

EU regulators opened a probe into the aid in 2010, saying they were concerned that the loan was granted on preferential terms.

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