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For sale – Cyprus Airways

16 July 2014

Greek Cypriot national carrier Cyprus Airways is up for sale.

The South Cyprus government has launched an advertising campaign in the press inviting investors to declare their interest in buying shares or any of the company’s remaining assets.

The adverts came out only a month after the Communications Minister Marios Demetriades said that the airline will close down unless it found a strategic partner.

Last Wednesday, Cyprus Airways Chairman Tony Antoniou stressed that finding an investor was essential for the long-term survival of the airline.

Selling the airline’s last time-slot at Heathrow airport, for $31 million, has increased the company’s liquidity for next year and has provided breathing space for the Government to make contact with strategic or institutional investors and find an investor who will help the ensure the company’s continuing existence.

Currently, the European Commission is in the middle of an in-depth investigation to assess whether or not state support of the restructuring of the ailing national flag carrier with €102 million follows EU state aid rules.

CA Chairman Tony Antoniou has said it would be good to come to an agreement before the EU Commission comes to a decision.

Antoniou told CNA that if the answer is positive, they will require investors to help the company to grow. If the answer is negative, then the company needs investors that will help it develop an alternative plan.

When the company sold its final time-slot at Heathrow Airport for for $31 million, it also announced that as of 14th September, flights to London Stansted airport would begin.

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