Turkey, Turkish Cypriots To Set Up New Airline Company To Replace Troubled KTHY

LEFKOSA - Turkish government and Turkish Republic of Northern Cyprus (TRNC) agreed to establish a new airlines company which will replace KTHY, TRNC's flag carrier that faced financial difficulties, Turkish Cypriot Transportation Minister said on Tuesday.

Ersan Saner said that the decision was made at the meeting with Turkish Deputy Prime Minister Cemil Cicek, who is in the island for a formal visit.

"We 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," Saner was quoted as saying by TAK, Turkish News Agency in Cyprus.

As part of earlier efforts following long-running financial problems and growing debts, at around $40 million, that ended up with a decision on government bailout, Turkish Cypriot government decided to call for bids in May to find a partner to KTHY.

Turkish Cypriot government held talks with Turkey's private airlines company Atlasjet and, in June, the government announced that parties had agreed to establish a new company in which majority shares would be held by Atlasjet.