Blue Air officially notified the South Moravian region of the Czech Republic that it couldn't reach agreement on flights from Brno to Milan, Brussels, Rome, Barcelona and Lviv, as talks with the the local authorities stalled over legal issues.
The regional government has already began to negotiate with other airlines to cover the routes.
The South Moravian had planned to hold a 35% stake in Blue Air Moravia, with the Romanian parent of the carrier holding the other 65% stake.
Blue Air now plans to base a B737-500 in Brno.