Smartwings subsidiary and flag carrier Czech Airlines (ČSA) reportedly intends to lay off 430 employees as the Covid-19 pandemic continues to affect its operations.

Business daily Hospodářské noviny reported that the airline has informed the Czech Republic’s Employment Office of its intention.

The move is part of the carrier’s restructuring preparations to save the company amid the pandemic.

ČSA spokeswoman Vladimíra Dufková ruled out the possibility of ceasing operations.

The airline plans to renew some routes to maintain its current flight schedule depending on the epidemiological situation.

Expats.cz quoted Dufková as saying: “ČSA will not stop operations in any case; the restructuring process aimed at rescuing ČSA continues. The possibility of mass layoffs, which ČSA announced to the Labour Office, is one of the steps in the restructuring measures.”

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ČSA is currently subject to a protective moratorium against creditors, which expires at the end of this month.

Earlier this month, Smartwings reportedly sought CZK 1.1bn ($55.1m) in state financial support.

Last year, the company announced plans to furlough a total of 313 ČSA employees by the end of this month. The carrier employed nearly 700 at the time of announcement.

This week, Malaysia Airlines operator Malaysia Aviation Group (MAG) received approval from the UK for a deal between its leasing unit and a majority of its aircraft operating lessors, enabling it to commence a restructuring plan with new capital of MYR3.6bn ($891m).