MEA will not buy Cyprus Airways shares

Carrier's financial losses turn deal sour

Talks between the Middle East Airlines (MEA) and Cypriot officials to buy shares in Cyprus’s national carrier, Cyprus Airways, have ended on a no deal note, sources from the MEA said. MEA officials had reportedly held preliminary talks to acquire a stake in the Cypriot national carrier.

Cyprus Airways is majority-owned by the Cypriot state. Private investors own six percent of its shares.

MEA does not intend to hold further negotiations over the deal, according to the company’s sources: “The acquisition was found to be unfeasible, mainly as the financials of the Cypriot airline do not encourage going through such a deal.”

Cyprus Airways, which operates a fleet of nine aircrafts, posted a net loss of $42 million in 2012, more than double the $18 million net loss it scored in the previous year. The carrier attributed the losses to unprofitable routes which led to a drop in revenue from cargo and passenger traffic. The company’s revenue plunged by 17 percent to $135 million in 2012.