Cypriot private equity firm Nearchi Investment has acquired start-up carrier Orion Airways from Aviation Capital Ventures for an undisclosed sum.
In a statement issued last week, Nearchi announced the agreement was reached after negotiating for four months and a thorough due diligence assessment.
Nearchi now plans to spend 30 million euros on getting Orion Airways fully certificated and operational.
“We strongly believe that this investment will be a great job creator in Cyprus and a wonderful brand ambassador for the country once operations begin properly next year,” read a Nearchi statement.
“We aim to be taking passengers during 2018 and look forward to a long and fruitful ownership of the airline.”
Once operational, the airline is looking to offer a hybrid value-cost model catering to both the chartered and scheduled passenger niches from its base at Larnaca, connecting the island further with Europe and beyond.
‘CREATING THE CYPRUS OF TOMORROW’
Nearchi Investment’s Founder, Richard Shearer, commented: “This deployment of capital to acquire Orion and fund future operations will see Nearchi remain true to its mission of becoming the pre-eminent active private equity firm focused on ‘Creating the Cyprus of Tomorrow’.
“The addition of Orion to our portfolio is in-line with our investment strategy and 2018 will see our continued investment into the tourism, hospitality, renewable energy and real estate development sectors.
“Our corporate DNA is one of providing growth capital to good businesses that we feel we can bring material value in terms of our networks, management strength and capital, and Orion fits this profile nicely.
“We are thankful to the existing owners for their willingness to support the start-up and to the staff who have got it this far.
“Further, we look forward to developing the business into a success for those who have worked hard to get to this point, and for the economy of Cyprus in general to which we think is genuinely the best growth story in the Eurozone.”