Amidst the ongoing financial mayhem, Chinese investors might take over Cyprus Airways
Few times in history a small island nation has got some much coverage in the international media...but, actually, Cyprus is not stranger to this blog: we have covered the struggles of its (now bankrupt) second national airline Eurocypria (with the collaboration of Alex Apostolides) , the great planespotting opportunities at Larnaca airport and the abandoned Nicosia airport, located right in the middle the buffer zone that divides the island in two...
Cyprus might soon make headlines again in the international press, but this time because if these reports (thanks for sharing it Hans!) turn out to be true, a Chinese group might be about to acquire Cypriot flag carrier Cyprus Airways, an airline that was just staying afloat thanks to emergency funds provided by the government.
And here is where the following two questions come to my mind:
1) What happens with foreign investment limits in airlines?
Although the EU is currently evaluating how to flexibilize these, there is still a 49% equity cap on foreign investors in EU-registered airlines.
2) What about the prove the European authorities launched on all that state aid Cyprus Airways has been getting from the government?
In a similar case, the attempted sale of now defunct airline Spanair to Qatar Airways, it was the existence of a similar investigation that sealed the fate of the company...
Once more, the fate of Cypriot economy takes a very European dimension...!