LIBRA Holidays Group is considering selling its airline Ajet despite relaunching the carrier this summer.
The former Helios Airways was rebranded as Ajet in May as the carrier awaited the outcome of an air accident investigation in Cyprus.
A Helios Boeing 737 crashed into a hillside on the island in August 2005, killing all 121 people on board. The investigators’ report, issued this week, blamed a combination of pilot error and a mistake by maintenance crews.
Ajet took over the Helios schedule, operating three aircraft between the UK and Cyprus, but promised a change in operations this autumn. However, its low-key launch gave the impression the airline was struggling to shake off the legacy of the crash.
The group is thought to be considering three options for the airline and will make an announcement in the next few weeks. The decision will form part of a wider restructuring of the group, due to be announced by the end of the year.
Director and major shareholder Victor Mantovani confirmed a sale was likely. He said high fuel prices had compounded the airline’s woes.
“We believe we could be profitable if we sold the airline,” he said. “We would buy seats through Excel instead. We have three options, but no final decision. The group has suffered losses because of the airline. We believe if it had not been for the crash, the airline would have been profitable.”
Mantovani added: “We were unlucky. It’s not that we are a struggling airline, but because of the crash we were deprived of the Cyprus market.”
Libra Holidays managing director Akis Kyprianou said: “We are analysing and discussing the future of the group. When a decision is finalised we will announce it.”
However, the group will have a new sales and marketing structure in place by the end of the year following this week’s departure of sales and marketing director Paul Riches.
Libra national account manager Julie Hadall said: “The group needs to look at where it is going over the next three months.”