Cyprus Parliament approved a EUR35 million funding package for Eurocypria on 18-Feb-2010, providing fresh capital for the struggling charter airline (Cyprus Mail, 19-Feb-2010). The carrier requires the funding to repay loans amounting to approximately EUR28 million. The funding will be provided through the acquisition of new shares. There is also the possibility that overseas investors may purchase some of the share issue. Finance Minister, Charilaos Stavrakis, stated that through “informal contact” with the European Commission (EC), the Ministry had been assured there would only be a possible issue over state support if another airline complained officially. However, Limassol-based law firm, Anastasios Antonious, filed an official complaint on 17-Feb-2010 with the EC regarding the financing on behalf of an anonymous client.
Eurocypria receives EUR35 million funding from Cyprus Parliament through share purchase plan
You may also be interested in the following articles...
Political uncertainty and overcapacity could sideswipe Middle East airline performance in 2017
Aviation is fundamentally a business of cycles and the Middle East has been slowly transitioning from a long upswing in traffic growth and airline profitability into a plateauing that brings with it new initiatives in partnerships and profile. Although the UAE and Qatari airlines are usually the focus of attention, it is a region with vastly differing attitudes and policies.
Persistent traffic growth, lower fuel costs and aviation friendly investment policies are keeping the underlying fundamentals in the Middle East generally positive. However, there are strong signs that the strong run of regional profitability is fading and growth rates have already retreated considerably. At the same time, Saudi Arabia is beginning to liberalise its market, perhaps promising a future larger global role.
The region is more exposed to oil price, conflict and instability influences than others and this is having its toll on GDP growth and, necessarily, on airline operations.
Jet2.com: growth mainly in Spain and Manchester. Overcapacity an issue, and competition strong
The strongly seasonal nature of Jet2.com's schedule and the financial performance of the airline and its parent Dart Group were examined in a Jul-2016 analysis report by CAPA. That report also noted that all of the increase in passenger numbers since the year to Mar-2013 was attributable to traffic booked via Dart Group's package holidays business – Jet2holidays.com.
This report looks in some detail at Jet2.com's network and how it has changed in the three years since summer 2013.
Over the past three years Jet2.com has increased its peak summer weekly seat capacity by one third. By airport, the biggest share of this incremental capacity has been at Manchester. By destination, the lion's share of its growth has been to Spain, where there is now a capacity glut. Its markets have become increasingly competitive – not only due to other LCCs, but also because of the growth of airlines owned by integrated leisure groups such as TUI and Thomas Cook.