Cyprus Airways Goes on Sale

Cyprus Airways Goes on Sale

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Cyprus’s government has given the green light for Cyprus Airways Ltd. to increase its capital, and authorized negotiations for the sale of an unspecified stake of the state-run carrier to investors, as ‘Bloomberg’ reports.

“Within the context of government policy to support Cyprus Airways, given its role especially for the Cypriot economy, the Cabinet reaffirmed its decision of January 2011 to raise the share capital of the company and approved the participation of the government as the major shareholder in the new issue of capital of the company,” Government Spokesman Stephanos Stephanou said.

The government also decided to authorize the finance minister to negotiate the sale of Cyprus Airways shares.

Talks to sell the loss-making airline to Russia’s Aeroflot have already begun and are at an “advanced stage,” while Lebanon’s Middle East Air Airlines has also shown interest in buying a stake in the carrier, as reports the Cypriot TV Channel ‘Capital TV’.