The EU Commission gave approval for EUR€100 million (USD$130 million) in state aid granted to state-owned CSA Czech Airlines, in parallel with a restructuring which the regulator said had a reasonable prospect of getting the airline back on track.
The Commission, which acts as competition and state aid regulator in the European Union, said the restructuring plan was sufficient to address the airline's financial problems.
"A significant capacity reduction, efficient cost and revenues management and the sale of assets should ensure the company's long-term viability without continued state support, whilst avoiding undue distortions of competition," the Commission said in a statement on Wednesday.
Under terms of the plan, the Czech authorities provided support through a debt-to-equity swap of a EUR€100 million loan from state-owned firm Osinek.
Gravity always wins!