PRAGUE, Sept 14 (Reuters) - The Czech government revamped the supervisory board at Czech Airlines (CSA) on Monday after a row over restructuring steps and just two weeks before the deadline in a government tender to sell the national carrier.
The move came after the board's long-time chairman Ivan Kocarnik resigned on Friday, saying clashes between management, trade unions and state officials were preventing cost cuts necessary to save the loss-making firm.
The government's attempt to sell the Sky Team member airline in the economic downturn has seen bidders drop out and there is just one left -- Czech group Unimex running the Travel Service charter airline together with Iceland Air.
CSA's new supervisory board chairman, restructuring expert Vaclav Novak, said it had to carry on the restructuring programme based on further asset sales, layoffs and wage cuts because it had no other option.
"If a company is in a crisis then a fierce solution is needed," Vaclav Novak told Czech television CT24. "The company has no other possibility but to continue what it has started."
Analyst had said CSA running a 50 aircraft fleet could be worth 5 billion crowns ($285 million) but doubts have risen whether the sale can be completed.
Unimex representatives were not available for comment.
CSA management, which has been divesting non-core assets and cutting costs, faces opposition of trade unions, mainly representing pilots, who reject proposed measures to save about 1 billion crowns, partially through layoffs and wage cuts.
CSA made a first-half loss of $99.6 million, after a $209,000 profit a year ago, as passenger numbers slipped almost 10 percent due to falling air travel in the global economic crisis.
The airline sale was dealt a blow in late August when Europe's biggest carrier Air France-KLM dropped out of the race. Unimex/Travel Service has until Sept. 30 to place a final bid.
The economic slowdown hit the entire industry with the first victim in the region being a small Slovakia-based carrier SkyEurope which filed for bankrupcy on Sept.1. (Reporting by Jana Mlcochova; Editing by Dan Lalor) ($1 = 17.52 Czech crowns)