Failed Airline rescued

Debt-laden Cyprus Turkish Airlines has been bought following the agreement of a five-year partnership deal with Atlasjet.

The Turkish airlines will invest $20 mil into the new venture, which will operate under new name New Cyprus Turkish Airlines in May next year.

But it remains unclear about who will pay the $40 mil debt owned by CTA, and how to recoup its total of $100 mil debt.

And just what is happening currently remains in confusion too: Only a few scheduled arrivals and departures will take off in the following days.

A new flight schedule is set to be published on July 6.

Passengers who flew on other airlines since STA was banned by the General Directorate of Turkish Civil Aviation will be allowed to travel for free with the new airline, and 12,000 current ticket holders for CTA flights can fly without forking out extra costs.

240 CTA staff will also be made redundant as the partnership looks into cutting costs.

The negotiations with Atlasjet and Pegasus ended with the signing of the deal on Sunday. Atlasjet was the only firm interested in taking over CTA until Pegasus appeared on the eleventh hour. The government initially favoured Pegasus, and the Publis Works and Transportation Minister Hamza Ersan Saner was also reported to have met and discussed a deal with Pegasus directors.

However, the deal fall through with Atlasjet taking over and the the partnership will end on 31 December 2015, with an option of a five-year extension.

Atlasjet currently holds 51% of shares with the other 49% held by TRNC Contingency Fund.