The Czech Republic’s largest airline is to lay off a third of its 900-strong staff, the company said on Wednesday, citing a drop in demand due to the stand-off between Ukraine and Russia.
Union representatives said the restructuring threatened the very existence of the airline, adding that they were prepared to organize a strike.
Czech Prime Minister Bohuslav Sobotka also raised concerns over the plan, and said his predecessors’ decision to partly privatize the company had been a failure.
The airline, co-owned by Korean Air, has been shedding assets in an attempt to reverse the losses resulting from a failed expansion several years ago.
Like many European carriers, it is facing competition from low-budget airlines including Ryanair and easyJet.