Further Cyprus Airways Update

Member for

14 years 2 months

Posts: 128

Hi Members.

As promised, I have posted further news regarding Cyprus Airways.

It looks like the airline will survive after the unions agreed to job cuts and salary cuts. Can anyone believe that an airline this size employs 1,800 people
and some of the pilots are earning £85,000 p/a, ( CYPRUS POUNDS ) !!! with the current exchange rates, this means that a Cyprus Airways pilot is earning the equivelent of £102,000 Sterling P/A. more than some B.A. pliots

Heres the story below.

CYPRUS Airways has started the painful road to recovery after all five major unions agreed to accept an austere restructuring plan that envisages hundreds of jobs axed and pay cuts of up to 25%.

Every effort is being made for the restructuring plan to be approved by the European Commission to secure a government-gauranteed loan of CY70m
The aim is to save the company and restructure it so it becomes profitable."

Pilots of the cash-strapped airline finally gave the green light to a huge restructuring plan on Thursday, It is hoped the government will now find the money it needs so that the airline can continue to fly people in and out of Cyprus.

The government has already decided to buy-out Cyprus Airways charter subsidiary Eurocypria as another strategy option if the tough restructuring plan fails to save the national carrier from closure.

If Cyprus Airways is forced to shut down, Eurocypria could operate as an independent airline that would keep open the flag carrier's slots at major airports and keep tourists coming to Cyprus.

Saving the national carrier is seen as crucial for the tourism industry, which is a key contributor to the economy.

Reducing the 1,800-strong staff by 500, cutting wages, scrapping or decreasing allowances and perks, plus bringing in outsourcing are included in the economy drive to save at least Θ21m annually.

For the first six months of 2005, Cyprus Airways suffered net losses of Θ20.4m. This came on top of record net losses of Θ39.4m in 2004, up from Θ20.9m a year earlier.

Tough competition following liberalisation after the island's May 2004 EU entry, coupled with losses incurred by its Greek subsidiary Hellas Jet, forced Cyprus Airways into cost-cutting mode.

That involved downsizing the fleet by two Airbus A320s and shedding Hellas. Loss-making routes were also abandoned.

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Original post
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Member for

14 years 6 months

Posts: 1,614

5 Unions - no wonder negotiations are tough

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Member for

16 years 2 months

Posts: 5,019

102 thousand :eek: wow! thats an impressive salary