N.Cyprus, Turkish Airlines sign deal to set up new air carrier

TRNC will own 30% of the company according to the MoU.

N.Cyprus, Turkish Airlines sign deal to set up new air carrier

Housing and Transportation Ministry of the Turkish Republic of Northern Cyprus (TRNC) signed a memorandum of understanding (MoU) on Monday with Turkish Airlines and ten other companies to start a new national air carrier.

TRNC will own 30% of the company according to the MoU. Turkish Airlines will own 10% of the shares of the new airline and the remaining 60% will be owned by the private sector.

TRNC will have only one seat in the executive board of the new airline while Turkish Airlines will contribute 4 members and other companies will have two members in the first five years after its establishment. Turkish Airlines will have the power to appoint the chairman of the board as well as the director general of TRNC's new national air carrier. After the first five years share holders will be represented in the executive board in proportion with their shares.

Turkish Cypriot Housing and Transportation Minister Hamza Ersan Saner regarded the signing of the MoU as a historic moment for his country.

TRNC's new national air carrier will start its operation with three passenger jets, and will add a fourth jet to its fleet in 2012. Its capital will be $15 million, and $9 million of this amount will be paid by the private companies.


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Last Mod: 21 Aralık 2010, 09:35
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