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Cobalt Air

Cobalt Air was a Cypriot airline that operated scheduled passenger services from 2016 until its financial collapse in October 2018.

Last updated August 24, 2026

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Overview

Cobalt Air was a Cypriot scheduled airline headquartered in Nicosia and based at Larnaca International Airport. Established in the autumn of 2015, it emerged during a period of restructuring in Cyprus's aviation sector following the dissolution of Cyprus Airways in January 2015. The airline became the second new Cypriot carrier established after that dissolution, following Tus Airways. Cobalt obtained its Air Operator Certificate on 18 May 2016 after completing a test flight between Larnaca and Heraklion. Its first Airbus A320 arrived in April 2016, and the airline operated its maiden commercial flight on 1 June 2016 from Larnaca to Athens. Ticket sales began later that month for Athens and five additional routes: Dublin, Heraklion, London Stansted, Manchester and Thessaloniki. The initial business model was positioned close to the low-cost segment, using Airbus narrow-body aircraft and a network focused on connecting Cyprus with European destinations. The carrier expanded substantially during 2017 and 2018. It added or announced routes from Larnaca to destinations including Frankfurt, London Gatwick and Moscow, while also considering Saint Petersburg and a larger presence at Paphos International Airport. In March 2018, it announced a route between Athens and London Gatwick, becoming the first Cobalt route that did not originate in Cyprus. Toward the end of its operating life, the airline also served London Heathrow. By February 2018, its network comprised 23 destinations in 13 countries across Europe, Russia and the Middle East. Cobalt gradually attempted to move beyond a basic low-cost model. In 2017, it announced economy-comfort seating, planned a frequent-flyer offering and examined the introduction of onboard Wi-Fi. Business class was offered on selected Airbus A320 services, with a 2-by-2 cabin layout, larger leather seats, priority services, dedicated check-in, lounge access and an expanded dining proposition. Airbus A319 aircraft did not offer the business-class cabin. Economy passengers generally received a buy-on-board service. In 2018, the carrier introduced wireless inflight entertainment using the Bluebox Wow platform and signed an agreement with Etihad Airways enabling through-checked baggage for connecting passengers to destinations across Etihad's network. In September 2018, it launched Cobalt Elements, a recognition and benefits programme offering upgrades, fare discounts, priority services and additional baggage benefits. Despite its expansion and growing presence at Larnaca, Cobalt faced financial difficulties. It suspended all flights indefinitely on 17 October 2018. The final flight to land was flight CO327 from London Heathrow to Larnaca, which arrived shortly after midnight on 18 October. Attempts to preserve the airline's operating permissions and attract a potential investor continued briefly. A Cypriot Administrative Court temporarily reinstated its Air Transport Licence in November 2018 following a challenge associated with Virgin Atlantic's leased Heathrow slots, but Virgin Atlantic withdrew its legal bid and the licence was suspended again. Cobalt did not resume commercial operations and is regarded as defunct.

History

Cobalt Air was established in Cyprus in the autumn of 2015, soon after the dissolution of Cyprus Airways created a significant gap in the country's commercial aviation market. It was the second new Cypriot airline formed after the former flag carrier's closure, following Tus Airways. The company planned to build a scheduled network linking Cyprus with important European and regional markets. The first Airbus A320 arrived in April 2016. Cobalt completed a test flight between Larnaca and Heraklion and received its Air Operator Certificate from the Cypriot authorities on 18 May 2016. Commercial operations began on 1 June 2016 with a flight from Larnaca to Athens. On 14 June, the airline opened ticket sales for Athens and five further destinations: Dublin, Heraklion, London Stansted, Manchester and Thessaloniki. Its early network was built around Larnaca International Airport, with Airbus narrow-body aircraft suited to medium-haul services. Expansion accelerated during 2017. The Cypriot transport minister announced that Cobalt would take over the Paphos–Athens opportunity after Ryanair planned to stop serving that route. The airline also planned to expand its fleet and announced an economy-comfort product for five rows of seats on its six-aircraft fleet. These seats could be sold for an additional fee or used as part of a business-class configuration with a 2-by-2 layout. Cobalt considered introducing a frequent-flyer programme and later announced plans for onboard Wi-Fi. Cobalt's network continued to broaden in 2017 and 2018. It announced Larnaca services to Frankfurt and London Gatwick and expressed an intention to operate to Moscow and eventually Saint Petersburg. A planned Moscow launch was delayed while formal requirements were completed. The airline also examined basing an aircraft at Paphos for services to Birmingham, Brussels, Dublin and London Stansted. In March 2018, it announced an Athens–London Gatwick route, its first service not originating in Cyprus. Near the end of its operating period, it began flying to London Heathrow. By February 2018, Cobalt served 23 destinations in 13 countries in Europe, Russia and the Middle East. During part of its growth phase it became the second-largest airline at Larnaca by weekly capacity, behind Aegean Airlines. The airline attempted to develop a more differentiated passenger proposition as it grew. Its Airbus A320 aircraft could offer business class with 12 large leather seats in a 2-by-2 arrangement. Business passengers received priority boarding, dedicated check-in, access to a business lounge and a flexible dining service. The A319 fleet did not include business-class seating, while economy passengers generally used a buy-on-board service. In May 2018, Cobalt announced a wireless inflight entertainment system supplied through Bluebox Wow. The portable units stored in aircraft overhead lockers streamed content to passenger devices. In June, the airline reached an agreement with Etihad Airways for through-checking baggage on connections to destinations served by Etihad's broader network. In September 2018, Cobalt launched Cobalt Elements, a passenger recognition programme. Benefits included fare reductions, seat upgrades, priority check-in and boarding, higher baggage allowances, dedicated customer support and upgrade vouchers. The programme reflected the carrier's effort to combine a relatively low-cost base with loyalty and premium-service features. Cobalt's expansion proved financially unsustainable. On 17 October 2018, it suspended all flights indefinitely because of financial difficulties. The last aircraft to arrive was flight CO327 from London Heathrow to Larnaca, which landed at 00:10 local time on 18 October. The suspension ended the airline's scheduled operations. A subsequent legal episode briefly raised the possibility of a revival: the Cypriot Administrative Court temporarily reinstated the airline's Air Transport Licence after an application associated with Virgin Atlantic, which had leased Heathrow slots to Cobalt and risked losing them. The decision was also relevant to efforts to find a potential investor. Virgin later withdrew its legal bid, and the licence was suspended again on 5 November 2018. Cobalt did not return to service and became defunct.

  • 2018

    Network reaches 23 destinations

    [1]

    By February, the airline served 23 destinations in 13 countries across Europe, Russia and the Middle East.

  • 2018

    Operations cease

    [1]

    Cobalt suspended all operations on 17 October because of financial difficulties.

  • 2018

    Licence reinstatement and second suspension

    [1]

    A court temporarily reinstated Cobalt's Air Transport Licence in November, but it was suspended again after Virgin Atlantic withdrew its related legal action.

  • 2017

    Network and service expansion

    [1]

    Cobalt expanded its route plans, announced economy-comfort seating and moved toward additional premium and digital passenger services.

  • 2016

    Air Operator Certificate granted

    [1]

    Cobalt received its Air Operator Certificate on 18 May after a test flight between Larnaca and Heraklion.

  • 2016

    Maiden commercial flight

    [1]

    The first scheduled Cobalt flight operated from Larnaca to Athens on 1 June.

  • 2015

    Cobalt Air is established

    [1]

    The airline was formed in Cyprus in the autumn of 2015 during the reshaping of the country's aviation market after Cyprus Airways ceased operating.

Products and positioning

A Cyprus-based network airline that began with a low-cost orientation and progressively added full-service features, including business class, inflight entertainment, connectivity plans, lounge access and interline-style baggage arrangements.

  • Passenger aviation · 2016

    Scheduled passenger services

    Cobalt's core offering was scheduled narrow-body passenger transportation from its main base at Larnaca International Airport. The network connected Cyprus with cities in Europe, Russia and the Middle East, and later included a route between Athens and London Gatwick that did not originate in Cyprus. At its reported peak, the network covered 23 destinations in 13 countries.

  • Premium air travel

    Business class

    Business class was available on selected Airbus A320 services. The cabin used 12 large leather seats arranged 2-by-2 and included priority boarding, dedicated check-in, more spacious seating, lounge access and an expanded dining service that could be requested at a preferred time. Airbus A319 aircraft did not provide the business-class product.

  • Passenger aviation · 2016

    Economy class

    Economy class formed the main cabin product and generally used a buy-on-board service. In 2017, Cobalt announced plans to add five rows of economy-comfort seating to its fleet, with the seats available for an additional fee or incorporated into a business-class layout on selected aircraft.

  • Inflight entertainment · 2018

    Bluebox Wow inflight entertainment

    Cobalt adopted Bluebox Wow, a portable wireless entertainment platform designed to stream content to passengers' personal devices. The airline specified three portable units per aircraft, stored in overhead lockers, with rechargeable batteries capable of supporting extended use.

  • Frequent-flyer and passenger recognition programme · 2018

    Cobalt Elements

    Launched in September 2018, Cobalt Elements provided recognition benefits across the airline's network. Members could receive seat upgrades, fare discounts, priority check-in and boarding, increased baggage allowance, a dedicated support line and upgrade vouchers. Annual membership included three complimentary economy-to-business upgrade vouchers, while additional vouchers could be purchased at a discount.

Brand decisions

  • 2018

    Introduction of wireless inflight entertainmentProduct launch

    Background

    Cobalt sought to add digital amenities without installing a conventional seatback entertainment system.

    Action taken

    It selected the portable Bluebox Wow platform for wireless content streaming across its fleet.

    Aftermath

    The service was introduced during the airline's final operating year and ended when the airline stopped flying.

  • 2018

    Launch of Cobalt ElementsStrategy

    Background

    The airline wanted to formalize recognition for frequent passengers and strengthen its premium-service proposition.

    Action taken

    Cobalt introduced a recognition programme offering upgrades, discounts, priority services, additional baggage and dedicated support.

    Aftermath

    The programme launched shortly before the airline's October 2018 suspension and was consequently discontinued.

  • 2018

    Suspension of all flight operationsOther

    Background

    Cobalt faced financial difficulties while expanding its fleet, route network and service proposition.

    Action taken

    The airline suspended all operations indefinitely on 17 October 2018.

    Aftermath

    Its licence was briefly reinstated through court proceedings in November, but was suspended again and the airline never resumed commercial service.

  • 2017

    Shift toward a broader full-service propositionStrategy

    Background

    Cobalt began with a low-cost orientation but sought to compete more broadly as its network and fleet expanded.

    Action taken

    The airline announced economy-comfort seating, considered Wi-Fi and developed business-class and loyalty features.

    Aftermath

    The strategy produced a more segmented onboard proposition, but the airline later ceased operations because of financial difficulties.

Recent events

  • 2018

    Cobalt Air introduces wireless inflight entertainment[1]

    Product launch

    Cobalt announced the deployment of Bluebox Wow, a portable wireless entertainment platform intended to stream content to passengers across its Airbus fleet.

  • 2018

    Cobalt Air signs baggage agreement with Etihad Airways[1]

    Other

    The agreement allowed eligible passengers to check baggage through when connecting onward to destinations served by Etihad Airways.

  • 2018

    Cobalt Air suspends all operations[1]

    Bankruptcy · Leadership change

    Cobalt Air stopped flying indefinitely on 17 October 2018 because of financial difficulties. Its final arriving flight reached Larnaca from London Heathrow shortly after midnight on 18 October.

  • 2018

    Administrative court temporarily reinstates Cobalt's air transport licence[1]

    Lawsuit · Regulation

    A Cypriot Administrative Court temporarily overturned the withdrawal of Cobalt's Air Transport Licence amid a legal issue involving Virgin Atlantic's Heathrow slots, but the licence was suspended again after Virgin withdrew its legal challenge.

  • 2017

    Cobalt expands its network and cabin proposition[1]

    Product launch

    The airline announced new routes, economy-comfort seating, planned Wi-Fi and a gradual shift from a purely low-cost positioning toward a broader full-service model.

  • 2016

    Cobalt Air launches its first commercial flight[1]

    Product launch

    Cobalt Air operated its maiden scheduled flight from Larnaca to Athens on 1 June 2016 and began selling tickets for additional European routes later that month.

  • 2016

    Cobalt receives its Air Operator Certificate[1]

    Regulation

    The airline received its Air Operator Certificate on 18 May 2016 after completing a test flight between Larnaca and Heraklion.

Sources1 sources

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