CCAAIIRR bbi­idd ppu­utt oonn hhoolldd

Financial Mirror (Cyprus) - - FRONT PAGE -

The gov­ern­ment has put on hold the fi­nal stage of se­lect­ing a suc­cess­ful bid­der among Aegean Air­lines and Ryanair to take over trou­bled na­tional car­rier Cyprus Air­ways, as the Fi­nance Min­is­ter has said that se­cur­ing Euro­pean Com­mis­sion ap­proval for nearly 100 mln euros in past state aid as “highly un­likely.”

Haris Ge­or­giades told the House Fi­nance Com­mit­tee that the fi­nal two bid­ders of the 22 that ini­tially showed in­ter­est had set some con­di­tions that are un­ac­cept­able to the gov­ern­ment.

He added that if the air­line man­ages to re­main op­er­a­tional, then fur­ther cut­backs will be nec­es­sary, which is why he asked for a sup­ple­men­tary bud­get of 10 mln euros for staff com­pen­sa­tions be ap­proved by the par­lia­men­tary com­mit­tee.

“In case an in­vestor is found, then the CAIR sale can go ahead even to­mor­row,” adding that the is­sue has dragged on for too long and that an in­vestor should have been sought from as far back as in 2007.

Mean­while, Eti­had Air­ways has re­port­edly asked for a finder’s fee of 1 mln euros in or­der to in­tro­duce the gov­ern­ment to po­ten­tial in­vestors, with Ge­or­giades say­ing that find­ing new in­vestors seems re­mote, es­pe­cially with the EC rul­ing on the ap­proval of the state aid still pend­ing.

He said that only ex­clu­sive routes out of Cyprus are those of Paris and Am­s­ter­dam, while the gov­ern­ment may even pro­ceed to auc­tion off its non-EU air op­er­a­tor’s cer­tifi­cates (AOC).

Greek sched­uled car­rier Aegean and Europe’s lead­ing low­cost op­er­a­tor Ryanair were the only two air­lines the gov­ern­ment had short­listed in the race to ac­quire trou­bled Cyprus Air­ways who ini­tially had un­til Novem­ber 15 to sub­mit their fi­nal bids.

All eyes are cur­rently on the EC rul­ing on whether a EUR73 mln res­cue pack­age in 2012 and a EUR 31.3 mln cap­i­tal in­crease in early 2013 vi­o­lated EU state-aide reg­u­la­tions.

Global Eq­uity In­ter­na­tional, Inc. (GEQU) and its whol­ly­owned sub­sidiary Global Eq­uity Part­ners Plc., ap­pointed VT Hy­dro­car­bon Hold­ings (Pte.) Ltd. to help raise $78 mln in or­der to ac­quire an LPG (liq­uid pe­tro­leum gas) stor­age tank fa­cil­ity in Jor­dan, with the amount al­ready raised and se­cured in a let­ter of “Proof of Funds” from the po­ten­tial in­vestors.

Us­ing this first deal as a model, VT will ac­quire, op­er­ate, man­age and build hy­dro­car­bon stor­age farms in Aqaba and ex­pand to re­peat the for­mula in other parts of the world, with the main business fo­cus on LPG stor­age as well as other wet fuel fa­cil­i­ties. Op­er­at­ing in a po­lit­i­cally neu­tral zone, VT’s Cypriot own­ers ex­pect to ini­tially ac­quire an ex­ist­ing stor­age fa­cil­ity and re­pur­pose it to spe­cialise in wet fuel stor­age and LPG stor­age, thus di­rectly re­spond­ing to the 45% mar­ket deficit in LPG sup­ply be­ing suf­fered in the lo­cal re­gion, which in­cludes Jor­dan’s neigh­bour­ing coun­tries.

LPG de­mand is in­creas­ing yearly in the re­gion for many rea­sons, mainly do­mes­tic con­sump­tion, feed­stock for petro­chem­i­cals and fuel for ves­sels as there is no ef­fec­tive stor­age for this de­mand.

Stor­age is re­quired to en­sure steady sup­ply, price sta­bil­ity

TNT Cyprus an­nounced that it is step­ping up its ser­vices in Europe with the TNT Group build­ing a new in­ter­na­tional de­pot in Eind­hoven in the Nether­lands and launch­ing air ser­vices to Hanover, Ger­many. Both de­vel­op­ments are part of the company’s strat­egy to invest in its core Euro­pean net­work, en­hance op­er­a­tional ef­fi­ciency and ser­vice qual­ity.

Com­ple­tion of the new de­pot in Eind­hoven is ex­pected in June 2015 which will en­hance TNT’s ca­pa­bil­ity to han­dle in­creased vol­umes of parcels and freight across north-

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.