Ryanair is in talks on a possible takeover of Cyprus Airways, chief executive Michael O’Leary confirmed yesterday.
O’Leary announced he was flying to Cyprus for talks with the government.
Ryanair has previously said it was not interested in acquiring Cyprus Airways. But the budget carrier was among up to 20 companies which submitted expressions of interest in the troubled Cypriot airline last month.
O’Leary was quoted by news agency Reuters saying: “We are engaged in the process and hope something will come of it.”
However, he said: “It’s a very political process down there.”
O’Leary said Ryanair has proposed Cypriot Airways retain its brand and operate under a separate air operator’s certificate to Ryanair.
The Irish carrier has been thwarted by the European Commission in its long-running attempt to acquire Dublin-based rival Aer Lingus.
Cyprus Airways, which has been loss-making for years, is controlled by the Cyprus government.
The EC is investigating whether a government rescue of the airline in 2012 and a capital injection in 2013 violated regulations on state aid.
Cyprus Airways recently sold its slots at Heathrow to Qatar Airways.