Turkish Cypriot court allows CTA privatisation so Unions stage rally

Yesterday (24th June 2010) the Turkish Cypriot’s top administrative court rejected an appeal to disallow the privatisation of the collapsed Cyprus Turkish Airline. This paves the way for AtlasJet to own 50.01% of the shares of the company and for the government to take a back seat in the operation. AtlasJet are supposed to have clinched the deal yesterday but there is no confirmation of this.

In response to the court’s decision, Unions have called a rally today (Friday 25/6/2010) and are rumoured to be striking in an effort to prevent flights using Ercan airport. This morning there is information that some flights are using the airport but it is unsure whether they are taking passengers. All evidence seems to indicate that passengers will not be able to complete their flights today.

The new partnership intends to reduce the a $40m debt to $10m within the first 6 months of operation. The original debt was rumoured to be $100m but there is a possibility that an agreement has reduced the debt that AtlasJet would be responsible for.

Hopefully after the Unions have vent their anger at the privatisation, flights will slowly begin to return to normal.


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