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NICOSIA, Cyprus (AP) – Cypriot airline Cobalt Air has suspended all its activities for an indefinite period after failing to find new investors to fly, officials said Thursday.
While stranded passengers were looking for alternative ways to get to their destination, the Cypriot government has announced that it will compensate all Cobalt Air ticket holders who fly back to the Mediterranean island with other carriers. It was unclear how foreigners stranded in Cyprus would be helped.
Philokypros Roussounides, chief executive of the airline, told the Associated Press that Cobalt's six passenger aircraft, Airbus, had been grounded, although the airline still exists as a legal entity. . Cobalt serves 22 destinations in Europe and the Middle East.
Roussounides said some companies were still interested in investing in the airline because of its successful brand image, strong reputation and high level of service.
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Roussounides said the passengers were eligible for a full refund, whether they paid by credit card or made arrangements with travel agencies.
In a statement, Cobalt Air called the suspension of its operations a "sad day" for the airline and its employees after "working tirelessly in recent months to secure long-term funding from the airline".
"This is a huge disappointment after the incredible hard work and dedication dedicated to building the airline," Cobalt said.
Michaelides said the company's Chinese supporters had given assurances last month that they would continue to fund Cobalt, even though the company was still losing money.
But the attempt to inject fresh money from new investors has failed, forcing the airline to shut down its operations, said Michaelides.
Cobalt Air began flying in 2016 as a result of the collapse of the national carrier Cyprus Airways. It has been recognized as the best start-up airline for 2017 by industry analysts, CAPA-Center for Aviation.
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