Cobalt reported to have problems with backers

first_imgCobalt, the largest Cyprus-based airline, is said to be in talks with new potential investors as its main Chinese backers are apparently having difficulty injecting funds into the company.In early October rumours began circulating that the budget airline was facing cash-flow problems after two of its aircraft were grounded for two days, causing delays to certain flights.Reportedly, the reason was that Cobalt had not paid the monthly leasing fee to the American company that owns the two planes.The company posted losses for the year 2017.According to local media, earlier this week the Air Transport Licensing Authority (part of civil aviation) summoned Cobalt officials to a meeting.The authority is said to have asked for the meeting due to concerns over reports that the company might be in financial trouble, which could potentially impact safety.Daily Politis reports that civil aviation has being monitoring the airline for some time.However, the newspaper said that to date the airline has been consistent with all its payments (salaries, etc) as well as with its aircraft maintenance obligations, while its flight operations are unaffected.Officially, Cobalt has declined comment. But sources within the company attributed the liquidity problems to a difficulty by Chinese investors to export capital due to Chinese government restrictions.The airline’s main stockholders are AJ Cyprus, holding 49 per cent of the shares. AJ Cyprus is owned by Chinese Avic Joy Air.According to Kathimerini, talks are ongoing with several companies involved in the air transport sector. Interest in acquiring a majority stake in Cobalt has been expressed by a number of Europe-based investors.Sources said that a deal could be announced over the next few days.The airline employs around 200 people.Cobalt stepped in to replace bankrupt Cyprus Airways, which shut down in January 2015.The low-fare airline began operating in 2016. Its fleet consists of two Airbus 319s (144 seats) and four Airbus 320s (156 seats).In 2018 the airline flew to 23 destinations.You May LikeUltimate Pet Nutrition Nutra Thrive SupplementAdd This One Thing To Your Dog’s Food To Help Them Be HealthierUltimate Pet Nutrition Nutra Thrive SupplementUndoAngels And EntrepreneursRobert Herjavec Announce Venture Could Make You RichAngels And EntrepreneursUndoDr. Marty ProPower Plus Supplement3 Dangerous Foods People Feed Their Dogs (Without Realizing It)Dr. Marty ProPower Plus SupplementUndo Turkish Cypriot actions in Varosha ‘a clear violation’ of UN resolutions, Nicosia saysUndoConcern over falling tourism numbersUndoPensioner dies after crash on Paphos-Polis roadUndoby Taboolaby Taboolalast_img read more