Cyprus-Forum.com

[halil]

Housing and Transportation Ministry of the Turkish Republic of Northern Cyprus (TRNC) signed a memorandum of understanding (MoU) on Monday with Turkish Airlines and ten other companies to start a new national air carrier.

TRNC will own 30% of the company according to the MoU. Turkish Airlines will own 10% of the shares of the new airline and the remaining 60% will be owned by the private sector.

TRNC will have only one seat in the executive board of the new airline while Turkish Airlines will contribute 4 members and other companies will have two members in the first five years after its establishment. Turkish Airlines will have the power to appoint the chairman of the board as well as the director general of TRNC's new national air carrier. After the first five years share holders will be represented in the executive board in proportion with their shares.

Turkish Cypriot Housing and Transportation Minister Hamza Ersan Saner regarded the signing of the MoU as a historic moment for his country.

TRNC's new national air carrier will start its operation with three passenger jets, and will add a fourth jet to its fleet in 2012. Its capital will be $15 million, and $9 million of this amount will be paid by the private companies.

Minister of Public Works and Communication Ersan Saner said that the state played a catalyzing role in the creation of the new company.
He noted that the official establishment of the company will take place when partners pay for 25 % of their shares in the next two days.
The Minister thanked the Turkish Cypriot businessmen as well as officials from the Turkish government for their work on the establishment of the company.

Speaking before the signing of the protocol yesterday, Prime Minister İrsen Küçük reminded that the new airline was expected to start operating as from March next year.
He added that applications from Sky Air and Onur Air to fly to and from the TRNC were also being evaluated.

[Kikapu]

TRNC will own 30% of the company but will have ONLY one executive board member.

Turkish Airlines will own 10% of the shares of the new airline, but will have 4 executive board members.

"Turkish Airlines will have the power to appoint the chairman of the board as well as the director general of TRNC's new national air carrier."

It's amazing what powers a 10% ownership can do in a company, as long as it is a Turkish 10% ownership, that is.!

[Me Ed]

This power to percentage ratio reminds me of another similar arrangement that ironically collapsed on this date today.

Percentages where never a strong point with the Turks.

[kurupetos]

Maybe we should sell Eurocypria to the "trnc".

[PushDaddy]

Good news...More flights to the TRNC. Healthy competition for flying into the South.

Onwards and upwards !

[vaughanwilliams]

http://www.centreforaviation.com/news/s ... snow/page1

Turkish Airlines (+2.9%) was the biggest gainer as the majority of European airline shares rose for Tuesday (21-Dec-2010). During the day it was reported that the carrier signed an MoU with the Turkish Republic of Northern Cyprus (TRNC) and 10 other companies to launch a new national carrier in the Turkish-controlled region of Cyprus.