Leisure Airline Closures

THE CYPRIOT Government has closed down the country’s charter venture Eurocypria, ruling that it could no longer support two state-controlled airlines given the growing competition from international low-cost rivals.  Despite an attempt to merge the entity with national carrier Cyprus Airways and for its fleet of aircraft and staff to be absorbed into the flag carrier, the company has been simply liquidated after the European Commission rejected the deal.
Elsewhere in Europe, Swedish charter carrier Viking Airlines filed for administration in November, just a couple of weeks after it suspended its flying programme from the UK at the end of the summer schedules.  The company is opening discussions with creditors in the hope it can wipe out some of its debts, which will to enable it to relaunch flights in spring 2011, albeit in a much more streamlined form.  Viking Airlines’ Greek sister venture, Viking Hellas, has a separate Air Operator’s Certificate (AOC) and its activities have therefore not been impacted.