Ryanair could find itself the owner of a small national airline that is not Aer Lingus. It is Cyprus Airways, a struggling carrier that has been leaking money and whose fleet stands at six Airbuses.
It does not look like a likely partner for Europe’s most profitable airline. But tomorrow Ryanair will be one of 15 or so suitors that will submit non-binding offers to the owner, the Cypriot government.
The Irish company only intends to offer a nominal sum for the business. In return for ownership and a deal at Larnaca airport, where Cyprus Airways is based, it is basically offering the government a package that will involve greater connectivity with the rest of Europe and a hefty increase in tourist numbers.
The Cypriot government will have to weigh up whether the offer is in its nation’s interests or not. While the country, an island that obviously needs air transport, could well benefit from having Ryanair as its flag carrier, the Irish airline is not simply doing this because it cares about Cyprus.
It sees the island as a useful jumping-off point to the eastern Mediterranean, north Africa and even Russia. Ryanair chief executive Michael O'Leary has made no secret of his ambition to get a foothold in this part of the world. With 180 new aircraft coming on stream, Ryanair is looking for growth avenues, and this area is clearly one that it believes offers opportunities.
Most of the markets in this region are outside the EU, but Cyprus presumably has bilateral agreements with some of those jurisdictions from which Ryanair can benefit.
Cyprus is within hailing distance of the Middle East, home to Emirates and Eti- had. Could it be that O’Leary ultimately wants to take on the big beasts of the Gulf?