Low-cost Spanish airline LTE has cancelled all scheduled flights from Norwich until March 2009.

The carrier is negotiating with a possible buyer and hopes to be able to restart the services.

A statement from LTE managing director Michael Harrington said: “An offer is currently on the table from a major European group to buy LTE and if this goes through, LTE will become a much stronger company.

He added: “As soon as this has happened, we hope to be up and running again and in a much stronger position. We will then come back to Norwich to re-launch our services and still hope that the position will be resolved before Christmas.”

Harrington insisted the company had not gone into administration and said the airline is continuing to operate charter services.

“The group concerned is currently going through due diligence with a view to completing the sale as soon as possible. However,  the Spanish CAA have insisted that we cancel all scheduled services for the winter season.”

LTE’s services have been suspended since mid-October.