Published: Sun, October 21, 2018
Markets | By Otis Pena

Cyprus airline Cobalt halts flights amid lack of investment

Cyprus airline Cobalt halts flights amid lack of investment

But the Cypriot transport ministry said passengers expecting to fly with Cobalt on Thursday should secure one-way tickets in economy class from another airline and keep their receipt to be reimbursed.

It operated flights to London Gatwick, London Heathrow, London Stansted and Manchester in the UK.

A statement on its website advised passengers not to go to airports as "no Cobalt flights will operate and no Cobalt staff will be present".

Speculation had recently emerged on the cash-flow problems after two of its planes have been locked in the ground for two days.

On Thursday the Cypriot transport minister emerged from an emergency meeting on the situation to say everything would be done to minimize the inconvenience for those stuck in Cyprus and overseas.

"As a result, future flights or services provided by Cobalt will be canceled and will no longer operate".

It is the latest budget carrier to run into difficulties after Denmark's Primera Air ceased trading earlier this month.

Greek foreign minister resigns over Macedonia name deal dispute
Tzanakopoulos said Tuesday's cabinet meeting involved "an open political discussion" on Kammenos' disagreement with the name deal. Kammenos has threatened to quit the coalition if it is put before the Greek parliament.

He said passengers were eligible for full refunds whether they paid by credit card or made arrangements through travel agencies.

Cobalt stepped in to replace bankrupt Cyprus Airways, which shut down in January 2015. CO327 probably be Cobalt Airways' last commercial flight.

Local media said Cobalt had failed to reach a deal with a potential new investor.

The announcement of the closure of the airline has left hundreds of passengers in limbo, while nine flights of Cobalt were from Larnaca on Thursday and nine more to get there. Despite the airline's existing Chinese backers pouring some 100 million euros ($115 million) into the company, it posted losses of 30 million euros ($34.5 million) for each of the last three years, Michaelides said.

Airport authorities said there was no panic in the departures hall, with passengers appearing to have stayed away after learning about the airline's fate and the flight cancelations.

In terms of getting a new flight, Cyprus Transport Minister Vasiliki Anastasiadou has promised help will be given to those stuck in Cyprus or overseas as a result of the collapse.

The airlines flies thousands of holidaymakers to the Med every year.

Like this: