A CYPRIOT controlled financial services firm is poised to bail out a Scottish budget airline and package holiday company in a deal that could in turn boost Cyprusâ ailing tourist industry.
Halcyon Investment Corporation, which is controlled by the Cypriot credit card procession firm E-Clear, is negotiating a deal with Scottish Airline Flyglobespan.com to generate both upfront and future investments.
Globespan has denied reports that it is on the brink of collapse. However some British media have speculated that without Halcyonâs investment, the holiday firm will go into administration.
The Independent on Sunday reports that one of the big-four accountancy firms is on standby and the Civil Aviation Authority (CAA) is keeping a close eye on the progress of the deal.
The deal was due to be concluded on Tuesday, but was granted a 48-hour extension by the CAA to finalise the deal, with the outcome expected this afternoon.
The outcome could have real implications for Cypriot tourism. Crawford Blaikin, Spokesman for Globespan, said yesterday âAt the moment, Globespan flies from Scotland to Paphos throughout the year. In winter two planes per week fly from Glasgow and Edinburgh and in summer another route operates from Aberdeen.â
âI canât speculate on any possible extensions, howeverâ he added.
The Boeing 757âs that make the trips carry up to 180 people, which means the collapse of Globespan could spell the loss of several thousand Scottish tourists to Cyprus next year.
Globespan chairman Tom Dalrymple said: âThis (deal) is good news for the company, our customers and our staffâ and that it could âexpand its airline and associated products and servicesâ
Flyglobespan is a subsidiary of Globespan Group was founded in 1970, has 900 staff and operates a fleet of more than 10 aircraft
The company is not alone in facing speculation over its financial status. E-clear is currently six weeks late in filing its accounts at Companies House and they were hit hard by the collapse of other airlines such as XL and Zoom Airlines.
E-Clearâs marketing and communications director, Constantine Seraphim said last week
âWe went through this last year and weâve cleared the situation. We are in a strong position ... Airlines have gone down but our position is really not weakened. We are just assessing our risk like any other bank or financial institution is. We are assessing the risk and we move on.â
Neither Halcyon Investments nor E-Clear were available for comment yesterday. Cyprus Mail