Cypriot-based carrier Tus Airways is to receive financial support through a shareholder loan, as the airline adjusts to disruption caused by the Israel-Gaza conflict.
Tus Airways had been operating services to Israel after the outbreak of hostilities in early October – although traffic volume was low – but the cancellation of insurance war-risk coverage forced it to cancel Israeli flights from 4 November.
Shareholder Knafaim Holdings, through its leasing arm, owns a 49.9% share of Tus Airways while a US entrepreneur, Kenneth Woolley, has the balance.
Knafaim states that both shareholders have decided to provide a one-year loan totalling $3 million – with each side contributing $1.5 million.
Each had already jointly supplied loans to Tus, the repayment date for which has been pushed to the end of June 2024.
Tus Airways operates a small fleet of Airbus A320-family jets on services mainly within the Mediterranean region.