Plans to sell Prestwick Airport have been grounded after the preferred bidder for the site pulled out.
Talks with a prospective buyer - understood to be AGS Airports - began last year but stalled as coronavirus lockdown hit in April.
Now Transport minister Michael Matheson has today confirmed the sales process has collapsed.
In a letter to MSPs, he said: "Covid-19 has impacted on the aviation sector globally.
"We have been advised that the company selected as preferred bidder does not wish to complete the purchase of the business at this time.
"Scottish ministers will reflect upon future options for the business."
The Scottish Government paid a token £1 for Prestwick in November 2013 with the airport on the verge of going bust.
Ministers pledged to return the hub to private ownership but initially struggled to attract commercial interest in the business.
State intervention was deemed necessary to save thousands of jobs in Ayrshire, including many in aviation engineering, which are supported by Prestwick.
The airport's most recent accounts show the business has racked up almost £38 million of cumulative losses since being taken into the public sector.
Loans adding up to £39.9 million have also been provided by Transport Scotland on behalf of Scottish ministers.
Ayr MSP John Scott said: "This withdrawal is a matter of regret and concern and represents a missed opportunity for the Scottish Government to return Prestwick Airport to the private sector.
"My concerns remain about the many jobs supported directly and indirectly by Prestwick Airport, and the future of flights to and from the airport and I am meeting with the Cabinet Secretary to discuss these concerns later this afternoon."
