Struggling Cyprus Airways in Talks with MEA
Near-bankrupt national carrier Cyprus Airways said on Tuesday it was in preliminary talks with suitor Middle East Airlines as it undergoes drastic restructuring to stay afloat.
"Middle East Airlines and its representatives had preliminary contacts with company management and the ministry of finance," the carrier said in a statement to the stock exchange.
"Consultations are at an early stage and so far there is no specific agreement to announce."
"As previously announced, consultations were held with other companies that had shown an interest in buying Cyprus Airways. However, these consultations are also at a preliminary stage."
Earlier this month the state-owned carrier announced that there were "encouraging" signs that China's Beijing Yi Xiang Da Investment could buy it.
The government, which is hoping to keep the carrier operation through the key summer months, has made it clear that the cash-strapped airline must undergo a drastic transformation or it be shut down.
The government has described the airline's current plight as "very difficult and fragile," and the carrier said authorities had adopted its restructuring plan for the 11 Airbus fleet to be reduced to six with one in reserve.
Trade union estimates said the company has pre-sold 400,000 seats for the summer, and unions say an agreement has been reached to reduce the 1,030-strong workforce by 490.
The company posted a net loss of 55.8 million euros for 2012, more than double the net loss of 23.88 million a year earlier.
Operating losses almost doubled to 49.7 million euros from 25.5 million.
The airline has also struggled to compete with no-frills competition on popular routes to Greece and Britain.
Last month, it said its future depended on it receiving rescue aid through a 31 million euro government share capital injection which would be subject to European Union approval.
But the European Commission has launched an investigation into whether the money that the state has pumped into Cyprus Airways breached competition law.
over 11 years
Funny. It seems MEA is doing really well, which is sad too because their main business is taking people away from lebanon
over 11 years
MEA An excellent move.. This way the EU market will be open to them through Cyprus, and they might even station a plane or 2 in LARNACA and launch direct flights to the USA, under the colors of Cyprus Airways. MEA has 18 modern planes right now, and over 10 on order. It is a very well run company that offers excellent service between BEY, Europe, M.East and Africa. It is even making profits doing so. We must be proud of it.
over 11 years
That is rubish!! That is not the way airlines are run. You can hardly find a flight from EUR to the US for less than 500 EUR. Hit week ends, and high season you pay at least 1000 EUR. in Economy A flight from Brussels to Zurich on any given day is 450 EUR. While the same airline will sell you BRUSSELS - LISBON for EUR 150 although flight time is more than double.. pricing follow market trends.. supply and demand..MEA is no charity and under no obligation to sell seats cheap. They actually do when planes are not full. WE pay USD 450 from EUR to BEY 9 months a year!! One clearly will have to pay much more if travelling during school holidays. Same for ALL destinations on ALL airlines!
Old news, on savait qu'il y avait un repreneur libanais possible depuis le 11 avril mais on ne connaissait pas son nom.
Maintenant, est ce que la MEA achètera les 66% du gouvernement chypriote ou s'agit-il d'acheter les 5 avions Airbus dont le compagnie doit se séparer.
Cette compagnie est aussi sur le coup d'une enquête de l'UE sur des subventions illégales versées par le gouvernement chypriote ...