By Frederic Pralus
The importance of Foreign Direct Investment (FDI) for national economies is undeniable. For countries like Cyprus, with an outward-oriented economic approach, the ability to attract businesses and capital is a critical driver of economic growth and employment opportunities.
Cyprus, for several reasons, has caught the attention of companies choosing either to expand or relocate their activities here. This appeal stems not only from the island’s strategic geographic location and favorable legislative environment but also from its highly skilled workforce.
Opportunities in the aviation industry
The aviation sector is expanding rapidly across Europe and encompasses far more areas than one might initially consider. From my perspective as an insider in the Maintenance, Repair, and Overhaul (MRO) segment, the industry’s growth is directly tied to the global increase in passenger volumes and the intensifying competition among airlines.
To illustrate the scale of the market, data from Precedence Research shows that its global value exceeded $86 billion in 2024, with projections estimating it will surpass $143 billion by 2034. These figures highlight the opportunities for countries capable of hosting such investments. I firmly believe that Cyprus, if it chooses to, can not only attract these investments but also distinguish itself as a key player in the region.
One investment completed – the next on the horizon
The potential I’ve outlined is not without foundation. At the site of the old Larnaca Airport, an MRO hangar has been operating for years. Since 2016, strategic investments have transformed it into a modern facility for aircraft maintenance and repair. The most recent addition—a new hangar with a value exceeding €2 million—significantly increases the capacity for servicing and repairing aircraft in Cyprus.
This addition will soon be followed by a 12,000 sqm facility capable of accommodating three aircraft in parallel, with an investment budget of more than €15 million.
Beyond the satisfaction of placing Cyprus on the European and regional map of MRO service providers, such investments have tangible effects on the economy and local employment. For instance, completing the first phase of the expansion in November 2024 enabled our company to surpass 200 employees for the first time in its history. This figure will reach 350 in 2026 as our investment plans continue.
As expected, this increased demand for personnel also requires the design of new training programs. In this context, Bird Aviation collaborates with universities and training
centers, creating new professional opportunities for Cypriots. The response so far has been so positive that, in some cases, it has extended to our equity participation in these organizations.
Maximizing the impact of private investments
The path to Cyprus’s success as a provider of high-quality services to international markets is now clear: leveraging and facilitating private investments to achieve sustainable growth.
Their significance for the economy and employment, especially in the aviation industry, has been demonstrated in several countries, with the smaller market of Malta being a prime example. The support and facilitation of such investments have led to remarkable growth in the sector in recent years.
Similarly, in our country, a collaborative and supportive stance from the state and its relevant institutions, including the Ministries of Finance and Transport, the airport operator, and the Department of Civil Aviation, should be viewed as essential for fostering investments that improve the country’s long-term prospects.
*Frederic Pralus is the CEO of Bird Aviation