Turkey’s Atlasjet Airlines became management partner of Cyprus Turkish Airlines.
Turkish Cypriot government said that privately-owned Turkish carrier Atlasjet would hold 50.01 percent of shares in KTHY, Turkish Cypriot flag carrier which faced financial difficulties that ended up with government bailout.
Turkish Cypriot government held talks with two Turkish airlines companies, Atlasjet and Pegasus, and finally on Tuesday it agreed with Atlasjet on a 50-50 profit sharing for five years.
Turkish Cypriot Transportation Minister Ersan Saner said “KTHY will continue to hold 49.99 percent shares but 50.01 percent stake will be transferred to Atlasjet.”
“We no longer will be involved in the company. Atlasjet will manage the company and we will act as inspector.”he added.
Turkish Cypriot government and Atlasjet are expected to sign the share transfer deal on Thursday. The deal between Atlasjet and Turkish Cypriot government aims to reduce KTHY’s debts to 10 billion USD in the first six months of partnership.
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Following long-running financial problems and growing debts, now around 40 million USD, Turkish Cypriot government decided to call for bids last month to find a partner to KTHY.
On Tuesday, country’s civil aviation authority suspended KTHY’s airlines operation certificate.
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