Why is this an issue?
What is the problem with Turkish Cypriots flying Cyprus Airways which is the national airline of Cyprus anyway? They complain about the cost of flying various Turkish airlines. Or if CA are too expensive then any of the other airlines that fly out of Larnaca and Paphos? Turkish Cypriots are free to cross the Green Line and into the free areas of the Republic of Cyprus at anytime. They have Cyprus and therefore EU passports and there are excellent transport links from Nicosia all over the island. Unfortunately, this is all the fault of the authorities in the North. They do not like TC's travelling over the green line, both for shopping and to exit Cyprus. They get a very hard time on their return. What is worse, there are not many Turkish Cypriots left in the north now anyway so there is no wonder the airline is defunct. The settlers from Anatolia far out number them now. Very sad indeed.