Cargo Airlines Ltd. (CAL) has been invited by the management of Cyprus Airways Ltd. to discuss its possible acquisition. CAL makes two weekly flights to Cyprus en route to other European destinations.
Given Israel and Cyprus's proximity and the collaboration between CAL and Cyprus Airways over the past 18 months, financially troubled Cyprus Airways considers CAL is its best alternative.
From CAL's perspective, it is not clear whether a takeover of government-owned Cyprus Airways is financially worthwhile, given the latter's business condition. Sources inform ''Globes'' that there is still a big difference between a meeting of executives and bidding to acquire the airline.
CAL said that it did not comment on media rumors.
CAL recently signed a cooperation agreement with Lufthansa, to carry CAL cargoes in its passenger jets flying between Israel and Germany. The deal, approved by the Antitrust Authority three weeks ago, will increase competition with El Al Israel Airlines Ltd. (TASE: ELAL).
CAL was founded in 1976 and was acquired by a consortium headed by Yarom Oren and Ofer Gilboa in 2010. It has 250 employees, and makes thirteen weekly cargo flights, including six transatlantic flights between Europe and New York.
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012