Cyprus Air Cancels Lease Deal For 2 Planes

Cyprus Airways has cancelled a lease deal for two aircraft from an Irish company after inconclusive talks on their delivery date, the airline said on Wednesday.

The airline, which is majority state controlled, announced its fleet renewal plan in February.

A Letter of Intent was signed in February for the lease of two Airbus A320 planes for an undisclosed sum over a period of six years.

Delivery of the planes was initially agreed for July or August which is peak season for tourism arrivals to the east Mediterranean island.

"At the point when the company couldn't tell us for sure when exactly the aircraft would be delivered to us, we decided not to proceed with the deal," Cyprus Airways spokesman Kyriacos Kyriacou said.

Kyriacou said that the airline is in talks with a number of other companies, so that its fleet is at full strength as soon as possible.

In March, the airline announced a lease deal for a new Airbus A320 over a period of six years.

Meanwhile, Cyprus Airways revealed that for January-April it transported 23,000 fewer passengers compared to the same period in 2008. This was attributed to the global credit crisis. Cyprus Airways' fleet now comprises 12 Airbus aircraft with an average age of 12.5 years.