Air France-KLM has withdrawn for the bidding of state-owned Czech Airlines citing the economic situation and downturn in the air travel industry.

“The current economic environment has significantly impacted the airline business,” the French-Dutch consortium said. “Under such circumstances, Air France-KLM believes that CSA might focus on developing and implementing a stand-alone recovery plan aimed at restoring its profitability.”

Czech airlines reported a loss of 1.32 billion koruna (£44m) in May, significantly worse than the 844 million koruna loss in the same period last year, but the company forecasts a profit in 2010.

Czech officials maintain that privatisation will continue, with further offers due next month.  Air France-KLM’s withdrawal has left only one remaing bidder, a consortium of Unimex and Travel Service.

Thanks to the Independent for the above quotes.  For more information on this article visit their website at theindependant.co.uk