Category Archives: Cyprus Airways

Cyprus Airways ends all operations, will be liquidated

Cyprus Airways (Larnaca) yesterday (January 9) ceased all operations after nearly 68 years and will be liquidated. The decision to shut down came after the European Commission ordered the airline to pay back over €65 million ($77 million) in what was deemed to be illegal state aid. The EC has been investigating this controversial state aid since February 2014 and the flag carrier has been struggling to reorganize and to continue operations.

Cyprus Airways commenced operations on October 6, 1947.

The airline issued this statement:

Nicosia

January 9, 2015

Dear Passengers,

Following the adverse decision of the European Commission for Competition, issued January 9, on the application of the Republic of Cyprus of a Restructuring Plan for Cyprus Airways (Public) Ltd submitted in October 2013, the Board of Directors of Cyprus Airways has decided to initiate the procedure for voluntary liquidation and to that effect all necessary measures will be taken.

In the context of the above decision all operations of the company will be suspended as of the close of business January 9.

Cyprus Airways would like to warmly thank the millions of passengers who flew with the airline over the years, for their choice and support. Special thanks are also expressed to the staff of the airline as well as its associates, whose professionalism and dedication were always at the service of the passengers.

We are extremely honoured to have made a valuable contribution, over the last 68 years, to the development of the economy of Cyprus and its tourism industry in particular. We have flown the flag of our country worldwide with pride.

The government of Cyprus announced that it has decided to offer alternative arrangements to all passengers who have Cyprus Airways tickets. The cost of all alternative arrangements will be undertaken by the Republic.

The affected passengers of Cyprus Airways, who have arranged their travel with departure days up to and until 9/2/2015, can immediately contact the travel agency Top Kinisis Travel Public at the national telephone number 77787878, or if they are calling from overseas at the telephone number +357 22869999, in order to arrange for the issuance of a new flight ticket. For the remaining passengers, with departure date from 10/2/2015 and onwards, a new announcement will be made in the coming days.

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. An historic photo of former American Airlines Boeing 707-123B 5B-DAP (msn 17635) in the 1977 color scheme.

Cyprus Airways aircraft slide show:

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Is Cyprus Airways facing a shut down in 2015?

Cyprus Airways‘ (Larnaca) management may be wanting that 2014 never ends. The airline could be facing a very uncertain future in 2015.

According to the Cyprus Mail, “Cyprus Airways could face imminent closure after the holidays if it fails to produce a credible restructuring program and prove its financial viability to the government, Kathimerini newspaper reported.”

The newspaper added further, “The airline must by January 8, 2015 present fully audited 2014 results to authorities, and provide evidence that it is a going concern for it to be allowed to continue to operate, Phileleftheros said in an unsourced report.”

Read the full report: CLICK HERE

The airline and the government are under review by the European Commission for alleged state aid in 2012 and again in 2013. The EC is expected to rule in 2015 if this alleged state aid violated EU rules.

The government of Cyprus controls 93.67 percent of the company’s shares.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. The Cyprus Airways fleet has shrunk to just six Airbus A320s. Airbus A320-232 5B-DCJ (msn 2108) arrives in Zurich.

Cyprus Airways aircraft slide show:

Ryanair launches daily Dublin-Brussels flights, wants to acquire Cyprus Airways

Ryanair (Dublin) on August 21 launched new daily Dublin-Brussels (Zaventem) service (three roundtrips daily) as part of an extended Dublin winter 2014 schedule, with nine new routes and increased flights on 21 existing routes to/from Dublin Airport. This new Brussels Zaventem route complements Ryanair’s existing Dublin-Charleroi (near Brussels) route.

The nine new routes from Dublin are to Basel, Brussels (Zaventem), Bucharest, Cologne, Glasgow, Lisbon, Marrakesh, Nice and Prague.

In other news, Ryanair will soon be in talks with the government of Cyprus about a possible takeover of loss-making Cyprus Airways (Larnaca) according to this report by Reuters. Ryanair believes it can turn around the failing carrier. Nearly 20 companies have submitted non-binding expressions of interest about Cyprus Airways.

Read the full report: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS EI-DHN (msn 33577) touches down at EuroAirport near Basel.

Ryanair: AG Slide Show

Cyprus Airways sells two London Heathrow slots to American Airlines

Cyprus Airways (Larnaca) has announced it has reached a final agreement with American Airlines (Dallas/Fort Worth) to sell two slots at Heathrow Airport in London.

Cyprus Airways will receive $31 million for the two slots which will ensure Cyprus Airways’ liquidity through 2015. The sale is part of Cyprus Airways’ restructuring plan.

Cyprus Airways will transfer the historic Larnaca – London Heathrow route to another London Stansted effective on September 14.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A321-231 5B-DCO (msn 2730) completes its final approach into London’s Heathrow Airport (LHR).

Cyprus Airways: AG Slide Show

American Airlines (current): AG Slide Show

 

Cyprus Airways moves closer to Air France after the Central Bank rejects MEA’s takeover bid

Cyprus Airways (Larnaca) is moving closer to Air France (Paris) with an expanded code-share program. Air France-KLM is helping the airline with its reorganization. The carrier today made this announcement:

Air France and Cyprus Airways are building on their existing cooperation to now offer a total of 20 daily code-share flights.

This new agreement offers travellers a wider choice of seamless travel solutions. Passengers travelling on Air France’s extensive international network are now able to connect to and from Cyprus at Paris-Charles de Gaulle airport.

Flight options between Larnaca and Paris are also enhanced through several daily connections via Athens, in addition to the five weekly nonstop flights operated by Cyprus Airways. Customers can now take advantage of the domestic flights operated within Greece by Cyprus Airways, offering easy connections via Athens, between Paris, Rhodes and Heraklion.

Thanks to this new code-share agreement, Air France will now offer flights operated by Cyprus Airways: Larnaca-Paris, Larnaca-Athens, Athens-Heraklion and Athens-Rhodes. Cyprus Airways will also offer flights operated by Air France between Athens and Paris.

To better serve passengers on both airlines’ code-share flights, Cyprus Airways has conveniently moved from Terminal 1 to Terminal 2 at Charles de Gaulle (CDG) airport. Terminal 2 is also used by Air France for its own flight operations. Moreover, passengers on both Air France and Cyprus Airways flights can collect points for their frequent flyer programmes, Flying Blue and Sunmiles, with each airline on all code-share flights.

This expanded relationship follows the bank rejection of all overtures by MEA-Middle East Airlines (Beirut) to either acquire a share or all of Cyprus Airways. The Central Bank, which controls the majority shares of MEA, rejected the plan by MEA to buy into troubled Cyprus Airways which is undergoing an reorganization. The bank did not want the airline to take on this added risk.

Read the full report from The Daily Star: CLICK HERE

Meanwhile Cyprus Airways’ pilots are supporting the restructuring plan being designed by Air France-KLM.

Video: 65 Years of Cyprus Airways:

Copyright Photo: Paul Denton/AirlinersGallery.com. Airbus A320-232 5B-DCK (msn 2275) approaches the Larnaca base for landing.

Air France: AG Slide Show

Cyprus Airways: AG Slide Show

Ailing Cyprus Airways is in talks with Chinese investors

Cyprus Airways (Larnaca) is struggling to survive in a harsh environment. The flag carrier announced yesterday it is in discussions with the Beijing Yi Xiang Da Investment Company Limited according to this report by the Cyprus Mail. No agreement has been reached on a possible investment. The airline has been kept alive by previous loans of the Cypriot government which has come under the scrutiny of the European Commission.

Cyprus has also been the center of a banking crisis with citizens waiting in line to withdraw their limited funds.

Read the full report: CLICK HERE

Copyright Photo: Tony Storck. Airbus A319-132 5B-DBO (msn 1729) prepares to land at Munich.

Cyprus Airways: AG Slide Show

Cyprus Airways loses $72.5 million in 2012, faces an EU investigation into state loans

Cyprus Airways (Larnaca) reported a net loss of $72.5 million as the flag carrier continues to lose money. The airline is also facing an European Union investigation into whether Cyprus improperly loaned $135.2 million to the national carrier. In addition, no other state funds can be loaned to the carrier without prior approval of the European Union.

Read the full story from Famagusta Gazette of Cyprus: CLICK HERE

Copyright Photo: Andi Hiltl. Airbus A320-232 5B-DCG (msn 4197) approaches Zurich for landing.

Cyprus Airways: AG Slide Show