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    Cyprus govt to seek investor for ailing airline

    Associated Press – Wed, Feb 8, 2012

    NICOSIA, Cyprus (AP) — The Cyprus government says it will seek out a strategic investor to support the island's money-losing national air carrier.

    But government spokesman Stefanos Stefanou didn't specify Wednesday whether the government would relinquish its majority stake in Cyprus Airways.

    Stefanou said the government would prop up the airline by purchasing newly issued shares as part of a recapitalization scheme.

    Cyprus Airways is running a loss as Europe's ongoing financial crisis has combined with stiff competition from budget airlines to dent business.

    The airline, which is 70 percent state owned, reported losses for the first half of 2011 of around euro29 million ($38 million), having carried 14 percent fewer passengers than during the same period the previous year.

     

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