Top jobs may be axed in return for staffing cuts
CSA Czech Airlines's management has offered to resign after the airline posted a first-half pre-tax loss of $99.6m.
Airline bosses made the offer in return for pay cuts agreed by the airline's employees.
CSA, which has struggled from falling decline, hopes to make further cost savings in a bid to return to profit next year.
Further cuts at state-owned CSA will result in the sale of parts of its fleet and other assets, and the closing of routes.
CSA's chief executive Radomir Lasak told reporters its management would resign if employees agreed to three conditions.
The conditions include a 30% cut in pilot's salary, a 15% reduction in other employee's pay and a a freeze on staff benefits.
Mr Lasak described the proposal as "a wonderful way to secure CSA's survival."
The Czech Republic government last week said it would press on with the sale of its national carrier despite the withdrawal from the bidding of Air France KLM.
But the announcement of a significant loss could make CSA less attractive to bidders and force the Czech government to lower its asking price.
The decision of AF KLM to pull out of the bidding for CSA leaves only a consortium of Czech companies Unimex and Travel Service as potential buyer.
The Czech government has also further extended the deadline for offers from July 13 to September 15.
The sale of CSA by the Czech state would amount to a major privatisation in central Europe.
Analysts believe that the AF KLM withdrawal could hit the price of the carrier which previously was said to be valued at about CZK5bn (€195m).
AF KLM pulled out of the bidding citing the current economic climate.
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