Air Transport

Czech Airlines' privatisation has effectively been scrubbed after the Government rejected the only bid for the flag-carrier.

The Unimex-Travel Service consortium had offered just over €1 billion ($1.5 billion) for a 91.75% shareholding of Czech Airlines.

But the Czech finance ministry says that the consortium put forward a number of conditions which were "unacceptable" for the Government. These included a demand that there be no negative equity in the company.

"The Government has decided to reject this offer and cancel the tender," says the ministry.

It says Czech Airlines' restructuring will continue in order for the airline to cope with the poor economic climate.