Cobalt, the promising low-cost carrier operating flights out of Cyprus since 2016, has now suspended operations indefinitely. The airline back primarily by Chinese investors expanded rapidly flying to 20 destinations since the company took off. Reports say the airline went down on account of financial difficulties.
Cypriot media have attributed the sudden suspension of flights to financial difficulty for the airline that leases six Airbus airliners to cover its routes. While it is not immediately clear exactly what happened, Cypriot transport minister Vassiliki Anastassiadou addressed the current passenger bookings situation saying; “arrangements would .”
A story from Aviatzion24 a few days ago told of Cobalt’s financial problems. Bart Noëth reported:
“Serious financial problems threatening Cypriot airline Cobalt after the Chinese government decided to freeze foreign investments. According to Economy Today, the “hole” in the company’s finances reaches €5 million, with some of the existing shareholders of Chinese origin refusing to meet their obligations.”
The airline has a staff of about 200 and had sought to fill a gap in Cypriot air transport following the demise of Cyprus Airways in early 2015, a state-controlled carrier that dominated mainly short routes from the island.
Cobalt canceled all flights from 11.50 pm on Wednesday night via a message on the website.
“Cobalt regrets to announce that it will be canceling all Flights as of 23:50pm on October 17, 2018 due to indefinite suspension of Cobalt’s operations. As a result, future flights or services provided by Cobalt will be canceled and will no longer operate.”
The announcement goes on to tell fliers to contact their credit card companies or travel agents for refunds, and to thank people for supporting the airline the past two years. The booking aspect of the website and other information have also been taken down.