"I will ask the cabinet today to request, as the main shareholder, Cesky Aeroholding to prepare the privatisation (of Czech Airlines)," lidovky.cz quoted Finance Minister Miroslav Kalousek as saying.

State-owned Cesky Aeroholding also operates Prague Airport.

The government had previously tried to privatise the airline in 2009, following heavy losses from a failed expansion plan. But the sole bidder, Czech charter airline Travel Service, refused to buy CSA without securing a capital injection from the government.

Czech Airlines, a member of the Sky Team alliance which also includes Delta and Air France, has had to cut back its fleet and services to avoid collapse.

The airline lost 241 million crowns ($12.10 million) last year.

The European Commission gave approval in September for a 100 million euros in aid to the state-owned airline.

Prime Minister Petr Necas said at the end of last year that he would recommend in 2012 that the government looks to sell CSA to a strategic partner.