Due to the current economic climate, Air France has now announced that it has pulled out of the bidding for Czech Airlines (CSA). This decision by Air France now leaves just one bidder for the national carrier.

Air France said in a statement that it had already informed the Czech Ministry of Finance of its final decision. The company went on to add, “The current economic environment has significantly impacted the airline business. 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.”

They also said, “In this context Air France KLM wishes to further strengthen the existing partnership between the two groups and to continue to explore with CSA any new areas of cooperation that could be of mutual benefit to each company.”

Air France reported a net loss of €426 million at the end of last month for the first quarter of its financial year. This is compared with a €211 million profit that it had during the same period of 2008.

Czech Airlines had launched an “Action Plan” last December to help cut costs and increase its revenues. The measurements of this plan included a cut in staff wages and, of course, some layoffs. Then in July, Czech Airlines announced an acceleration of this plan to help cope with the estimated double digit drop in passenger numbers. The airline had also noted that it was cutting the frequency or scrapping altogether some of its European routes to help save money.

Thanks to www.abtn.co.uk for the above quotes.