Czech minister mulls bailout of airline CSA

PRAGUE, Sept 20 (Reuters) - The Czech government may boost the equity at loss-making national carrier Czech Airlines in order to save it, Finance Minister Vlastimil Tlusty said on Wednesday.

Tlusty said any state aid, which he estimated at 2 billion crowns ($89.09 million), would have to be a step towards privatising the company.

"They will probably not be able to do without state aid. The problem is that it can be subject to the approval of the EU as state aid," he said in an interview on Radio Cesko.

Czech Airlines (Ceske Aerolinie, CSA) lost 773 million crowns in the first half of this year on rising fuel prices and competition.

The SkyTeam alliance member decided to expand its fleet by 45 percent in 2003, a plan which CSA's new boss Radomir Lasak said was not backed by a corresponding boost in business.

The airline had previously been led by opposition Social Democrat official Jaroslav Tvrdik.

Tlusty is Finance Minister in the new right-wing minority cabinet, which is expected to lose a confidence vote due to be taken by Oct. 4. However, it may stay on as caretaker administration for some time while political talks on another cabinet continue. ((Reporting by Jan Lopatka, editing by Greg Mahlich; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

($1=22.45 Czech Crown)

Keywords: AIRLINES CZECH CSA