Low cost carrier, Ryanair, has applied to the Cyprus Department of Civil Aviation (CDA) for a Cyprus Air Operator Certificate (AOC), which would permit the carrier to establish a subsidiary airline on the island.
This move comes amid a heated bidding war unraveling between various airlines – including Ryanair – for the acquisition of Cyprus Airways, the island’s national carrier.
The AOC – essentially a license to operate – is issued by Governments to approved airlines, and AOCs issued by European Union countries warrant “mutual recognition” among all EU countries.
Although Ryanair is an Irish airline – thus licensed to operate by an EU country – it has applied specifically for a Cypriot certificate.
The reason, one business insider told the Cyprus Mail, is Cyprus’ bilateral air services agreements with third – meaning non-EU – countries.
“As a Cypriot company, Ryanair would automatically be able to take advantage of Cyprus’ bilateral agreements with third countries,” the Cyprus Mail quotes the source as saying.
“At this moment, there are restricted routes to and from third countries – for example, in the Middle East – that Cyprus Airways has the exclusive rights to, but cannot afford to operate.”
“These would be wide open for any Cypriot AOC holder,” the source confirmed.
Last month, Ryanair was short-listed along with eight other carriers by the Cyprus Government as interested parties to take over state-owned Cyprus Airways.
Since the onset of the sale process of Cyprus Airways, Ryanair’s CEO, Michael O’Leary has been ambivalent as to the low-cost carrier’s commitment to buy Cyprus’ airline, conceding most recently that it is more likely that Aegean Airlines – also short-listed – will win the bid.
Nonetheless, he also said that Ryanair be successful, he is confident that the airline could boost passenger traffic to Cyprus up to 3 million.
The fate of the struggling national carrier of Cyprus is expected to be decided by November.
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