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Cyprus Airways seeks 73 million Euros from state

20 December 2012

Ailing state carrier Cyprus Airways (CY) is asking the state for an additional €73 million as part of a restructuring plan to make the company viable, it emerged yesterday.

This would be over and above some €31 million requested earlier this year, with €15 million already granted.

“I understand the difficult economic conditions we are going through but this company cannot go forward if new capital is not injected to keep it going until the summer and give the time necessary for its restructuring,” stated CY chairman Stavros Stavrou. He added that there is interest from investors, but they also wanted to see the plan and signs that it was being implemented.

The plan calls for cutting personnel by 407 to 623, bringing salaries down to the levels of the competition and introducing working hours to suit the needs of the airline in the current competitive environment.

It also proposed outsourcing the airline’s maintenance, a provision opposed by unions and the management.

“We believe this is one of the biggest assets the company has at the moment,” Stavrou said.

The CY boss said there was a safety element involved and “we do not negotiate on safety matters. That is why our suggestion is for this department to remain under the CY roof.”

Committee chairman, DIKO MP Nicolas Papadopoulos, said it was the view of its members that an effort should be made to rescue the airline.

Releasing €105 million would involve the agreement of the European Union,

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