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Cyprus Airways to be restructured

3 May 2013

Cyprus Airways has begun its restructuring programme by terminating aircraft leases and adjusting flight schedules, says Minister of Communications Tasos Mitsopoulos, today.

He added that the merging of services is underway, in order to cuts costs. When asked about the restructuring plans, Mitsopoulos, said that the trade unions would presenting the proposals to their members for final approval.

The government, board and unions agreed in mid-April, measures, that amongst other thing, will implement pay cuts and redundancies with compensations, in order to keep the ailing national airline viable.

The Minister noted that according to the information he has, other provisions of the restructuring plan will start being applied following Orthodox Easter holidays.

He added that the only point that remains is the sensitive issue of the personnel redundancy process, in line with the agreement.

In next week’s Cabinet meeting, the course of implementing the agreement will be evaluated, the Minister concluded.

No mention was made of a Chinese company which had expressed interest in buying Cyprus Airways.

In a recent statement to investors, CY said that officials from Beijing Yi Xiang Da Investment Co Ltd had held talks with finance ministry and airline officials.

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