S7 Group, the largest private aviation group in Russia, which includes S7 Airlines, plans to sell its 36.875% stake in Cyprus Airways, the national airline of Cyprus.
S7 entered the capital of Charlie Airlines, which operates under the Cyprus Airways brand, back in 2016. S7 was interested in studying the specifics of operations under a European operator certificate, but all that has changed since the pandemic.
The decision to sell the stake in Cyprus Airways, will allow the Group to prioritize its efforts in the Russian market, which present its own challenges and opportunities.
The cost of financial investment in the shares as of late 2020 amounted to US$5.5 million. Charlie Airlines obtained the right to operate flights under the brand of the national carrier for 10 years in 2016, for $2.3 million.
Cyprus Airways operates two A319s from the S7 Airlines fleet, however the two aircraft have been grounded since 15 July 2020. It is unknown if the aircraft will remain with the airline.