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Cyprus Airways Suspends Trading On Cyprus Stock Exchange

cyprus airways suspends shares

Cyprus Airways said it has suspended trading on its shares in the Cyprus Stock Exchange because of the uncertainty caused by media stories on the company's outlook and economic situation.

Trading in its shares were suspended until a clarification announcement is made by the company and trading will resume as usual on February 10th, said the airline. The issue was discussed yesterday at a Cabinet meeting and Government Spokesman Stefanos Stefanou said the company faces severe problems that would have to be faced and handled. The government has agreed to a decision by Cyprus Airways' Board of Directors to boost its capital and find new investors in the private sector, said Stefanou.

The airline has already made some preliminary contacts with potential shareholders, said Stefanou, adding that so far there is no decision on the size of the stake that is on offer. The company denied rumours that Aeroflot, Middle East Airlines and the state of Qatar are interested in investing or buying it, saying that so far no concrete proposals exist from these or any other investors.

The airline's majority stake of 69.57 percent is held by the state, while 30.43 percent is held by private investors.

Management of the company has come under strong criticism from opposition MP Averoff Neophytou, who said that it could lose between 40 and 50 million euros for 2011 due to lack of effective management. By the first six months of 2011, the airline had losses of 29.3 million euros due to intensified competition and an ongoing financial crisis, it said.

Final decisions will be taken at the next board meeting on February 16th, according to a statement by the airline.

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