Heavy financial losses and reduced air traffic to the US have forced South African Airlines (SAA) to ditch its joint venture with Nigeria Airways

The main part of the joint venture, a Johannesburg-Lagos-New York route launched in February 2001, will close on 24 March.

Planes on the route were manned by an SAA flight crew, while on-board service was provided jointly by the two companies.

Nigeria Airways was allowed to sell 109 seats out of the 330 on the flight.

SAA tried unsuccessfully to persuade its Nigerian partners to accept a cut in their seat quota in order to offset a decline in passenger numbers.

"Discussions with Nigeria Airways to reduce the 109 seats to 30 failed. SAA had no alternative but to end the relationship after losses amounting to about 54m rands (�3.3m, $4.7m),"SAA said in a statement.

The companies will continue operating between Johannesburg and Lagos.

South African Airlines, which has postponed a planned flotation, is undergoing restructuring aimed at putting it on a firmer financial footing.

Last month, the South African government bought back 20% of the company's shares from the collapsed carrier Swissair.

The government is planning to proceed with the privatisation of SAA when market conditions improve.