Air Transport

Central European budget carrier SkyEurope Airlines has suspended operations with immediate effect.

The airline, already under Slovak creditor protection, has been struggling to stay afloat in the face of heavy losses, defaults on payments and, lately, being barred from two major bases.

SkyEurope says it has "suspended" its operations and sales and "regrets the inconvenience" caused to passengers.

There had been indications yesterday of serious problems with the airline's operations after Bratislava Airport, its home base, showed all SkyEurope flights had been cancelled from midnight.

Prague Airport's operator had also threatened to end all SkyEurope handling today. The airline was similarly barred from Vienna over unpaid debts in mid-August.

SkyEurope has a fleet of two Boeing 737-700s which it owns, plus two -700s leased from Dubai Aerospace Enterprise. It also leases a handful of older 737 models.

About 60% of SkyEurope is floated on the stock exchange while two investment firms, York Global Finance and Focus Capital, hold the balance.