Cypriot based air carrier Tus Airways is in financial difficulties according to reports.
The company recently grounded three of its planes and asked the Air Transport Licensing Authority for a postponement in replacing aircraft components that were due for repair.
Tus Airways, backed by Israeli and American investors begun operations following the closure of Cyprus Airways. It operates short haul flights to nearby destinations such as Tel Aviv and Athens.
A meeting has been scheduled with Transport Ministry officials on Friday to ascertain the way forward.
The news come a day after reports that Cobalt Air, another Cypriot carrier, was facing liquitity problems.