Cyprus Airways reborn into very different competitive landscape; pre-empted by Cobalt Air & Tus Air
Cyprus Airways ceased operations in Jan-2015, and since then much has changed in the market. Annual seat capacity in the market to/from Cyprus has increased by 25% (2016 versus 2014), the biggest competitor Aegean has almost doubled its capacity in Larnaca, the biggest Cypriot airport, and two new start up Cypriot airlines have been launched – the LCC Cobalt Air and regional airline Tus Airways. It would seem that the old 'flag carrier' has not been missed. Nevertheless, Cyprus Airways has now been reincarnated.
Charlie Airlines, a new airline part owned by Russia's S7 Airlines, acquired the rights to the Cyprus Airways name and logo in Jul-2016. After obtaining an AOC in Mar-2017, it launched operations at the start of Jun-2017 with a service from Larnaca to Saint Petersburg. It also offers Rhodes, Heraklion and Tel Aviv this summer.
Cyprus is a very competitive and very seasonal market, with a strong leisure focus. The new Cyprus Airways' simplified business model suggests that it should have a lower unit cost than that of its defunct predecessor, but finding a defendable niche will be crucial.
To access CAPA Premium Analysis you need a CAPA Membership
Your window into the latest insights
CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.
Big picture strategic view
Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.
The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.
Customise your Alerts
CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.
I'm very impressed by the factual and detailed analysis CAPA is always doing.- CEO, Airline Member
Phone: +61 2 9241 3200 | Email: email@example.com