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Order HereLebanon’s central bank, Banque du Liban, has blocked a proposed takeover of financially troubled Cyprus Airways by Beirut-based Middle East Airlines (MEA).
Central Bank governor Riad Salameh said the bank could not approve MEA’s bid because it could increase the Lebanese carrier’s exposure to risk, according to Lebanon’s Daily Star.
The paper quoted Salameh as saying: “Commercially, this matter is left to MEA to assess the acquisition. But in principle the central bank, which controls the majority of the national carrier, cannot approve MEA’s acquisition of Cyprus Airways. The duty of the Central Bank is to use its money to protect the monetary and economic situations and for this reason we cannot bear more risks for companies that belong to us. Unless MEA becomes a private company, it is difficult for the airline to expand outside Lebanon because this does not suit the role and purposes of the central bank.”
Last month, Cyprus Airways and the Cypriot Finance Ministry held preliminary talks with MEA. However, the Larnaca-based carrier said it also had consultations “with other companies that had shown interest,” including China’s Beijing Yi Xiang Da Investment Co. It stressed, however, that “consultations are at an early stage and there is currently nothing further to announce.”
Communications minister Tasos Mitsopoulos has reportedly confirmed that MEA is no longer interested in investing in Cyprus Airways, but reiterated that other investors were exploring investment possibilities.
In the meantime, the government of Cyprus has adopted a restructuring plan proposed by the board of directors to save the struggling airline from closure. It includes reducing its fleet to just six aircraft plus a spare, as well as staff layoffs.
However, according to the Cyprus Mail, the entire board of Cyprus Airways resigned Monday in protest at the government’s promise to find €20 million ($26 million) in compensation for workers laid under the restructuring plan. Local media sources said the board was simply unable to find the compensation money agreed between the government and unions.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereLebanon’s central bank, Banque du Liban, has blocked a proposed takeover of financially troubled Cyprus Airways by Beirut-based Middle East Airlines (MEA).
Central Bank governor Riad Salameh said the bank could not approve MEA’s bid because it could increase the Lebanese carrier’s exposure to risk, according to Lebanon’s Daily Star.
The paper quoted Salameh as saying: “Commercially, this matter is left to MEA to assess the acquisition. But in principle the central bank, which controls the majority of the national carrier, cannot approve MEA’s acquisition of Cyprus Airways. The duty of the Central Bank is to use its money to protect the monetary and economic situations and for this reason we cannot bear more risks for companies that belong to us. Unless MEA becomes a private company, it is difficult for the airline to expand outside Lebanon because this does not suit the role and purposes of the central bank.”
Last month, Cyprus Airways and the Cypriot Finance Ministry held preliminary talks with MEA. However, the Larnaca-based carrier said it also had consultations “with other companies that had shown interest,” including China’s Beijing Yi Xiang Da Investment Co. It stressed, however, that “consultations are at an early stage and there is currently nothing further to announce.”
Communications minister Tasos Mitsopoulos has reportedly confirmed that MEA is no longer interested in investing in Cyprus Airways, but reiterated that other investors were exploring investment possibilities.
In the meantime, the government of Cyprus has adopted a restructuring plan proposed by the board of directors to save the struggling airline from closure. It includes reducing its fleet to just six aircraft plus a spare, as well as staff layoffs.
However, according to the Cyprus Mail, the entire board of Cyprus Airways resigned Monday in protest at the government’s promise to find €20 million ($26 million) in compensation for workers laid under the restructuring plan. Local media sources said the board was simply unable to find the compensation money agreed between the government and unions.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereLebanon’s central bank, Banque du Liban, has blocked a proposed takeover of financially troubled Cyprus Airways by Beirut-based Middle East Airlines (MEA).
Central Bank governor Riad Salameh said the bank could not approve MEA’s bid because it could increase the Lebanese carrier’s exposure to risk, according to Lebanon’s Daily Star.
The paper quoted Salameh as saying: “Commercially, this matter is left to MEA to assess the acquisition. But in principle the central bank, which controls the majority of the national carrier, cannot approve MEA’s acquisition of Cyprus Airways. The duty of the Central Bank is to use its money to protect the monetary and economic situations and for this reason we cannot bear more risks for companies that belong to us. Unless MEA becomes a private company, it is difficult for the airline to expand outside Lebanon because this does not suit the role and purposes of the central bank.”
Last month, Cyprus Airways and the Cypriot Finance Ministry held preliminary talks with MEA. However, the Larnaca-based carrier said it also had consultations “with other companies that had shown interest,” including China’s Beijing Yi Xiang Da Investment Co. It stressed, however, that “consultations are at an early stage and there is currently nothing further to announce.”
Communications minister Tasos Mitsopoulos has reportedly confirmed that MEA is no longer interested in investing in Cyprus Airways, but reiterated that other investors were exploring investment possibilities.
In the meantime, the government of Cyprus has adopted a restructuring plan proposed by the board of directors to save the struggling airline from closure. It includes reducing its fleet to just six aircraft plus a spare, as well as staff layoffs.
However, according to the Cyprus Mail, the entire board of Cyprus Airways resigned Monday in protest at the government’s promise to find €20 million ($26 million) in compensation for workers laid under the restructuring plan. Local media sources said the board was simply unable to find the compensation money agreed between the government and unions.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.