Struggling Cyprus Airways has been holding preliminary discussions with Middle East Airlines regarding a possible investment.
The airline has disclosed that representatives from each side have had initial contact, but stresses that nothing firm has been agreed.
Cyprus Airways adds that the government has adopted a proposal to cut back the fleet to just six aircraft, plus a back-up, as part of a cost-saving effort.
It operates about a dozen Airbus A320-family aircraft, having already given up using A330 long-haul jets.
The state-owned airline has been holding talks with potential investors as it battles to contain losses.
It had previously identified a Chinese company as a possible buyer but says that, while parties have "shown interest", the airline has yet to secure any concrete agreement.
Middle East Airlines, the Lebanese national airline, also uses a fleet of A320s and A330s.