Cobalt

Cobalt aircraft grounded on 17 October at midnight

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Cyprus based Cobalt Airlines will ground its 6 aircraft at midnight this Wednesday, 17 October, after the company failed to reach a deal with a potential European investor to solve its liquidity problems.

According to Cypriot economic newspaper Economy Today, the company with a distinctive sky blue livery has only €15 million left on its bank accounts, which should be used to pay the employees.

All of the flights scheduled for Wednesday will operate normally with the last one, CO327, coming into Larnaca International Airport from London Heathrow at 00:10 Thursday morning.

Sources within the company attributed the liquidity problems to the impossibility for Chinese investors to export capital from China due to government restrictions after the trade war initiated by US President Trump.

The main stockholder of Cobalt is AJ Cyprus, owned by Chinese Avic Joy Air, with 49 per cent of the shares.

The airline employs around 200 people. Its fleet consists of two Airbus 319s (144 seats) and four Airbus 320s (156 seats). The airline flew to 23 destinations in 2018. The Chinese owners ambitioned to fly long-haul routes, essentially to destinations in China.

Source: Cyprus Mail

Forum discussionhttps://www.aviation24.be/forums/viewtopic.php?f=7&t=50212&p=373630#p373478

This post was published on 17 October 2018 22:03

André Orban

M. Sc. Engineering

Published by
André Orban

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