Cyprus Turkish Airlines goes bankrupt

KTHY does not have any operations since June 2010 when company's flights suspended.

Cyprus Turkish Airlines goes bankrupt

A Turkish Cypriot court on Thursday ordered dissolution of Cyprus Turkish Airlines, or KTHY, the flag carrier of Turkish Republic of Northern Cyprus (TRNC).

On Wednesday, KTHY board had decided to go to court, seeking bankruptcy, a move that came after grave financial troubles.

Following legal procedures, KTHY must completely be dissolved, the court ruled.

Governments of Turkey and TRNC announced earlier this month that a new airlines company would be established to replace KTHY that had long-running financial problems and growing debts, at around $40 million.

"We have agreed on establishment of a new airlines company which will draw advantage from Turkey's flag carrier THY's experiences. Private air carriers will hold shares in the new company," Turkish Cypriot Transportation Minister Ersan Saner had said on October 5.

KTHY does not have any operations since June 2010 when company's flights suspended.

Following Thursday's court ruling, KTHY Chairman Fikret Cavusoglu saids that it was a painful situation for executives and employees of a 36-year-old company, and also for the people of TRNC.


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Last Mod: 22 Ekim 2010, 09:16
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