Discussions with Cyprus Airways trade unions need to conclude by the end of next week, in order for the Cypriot Parliament to proceed with a draft bill providing for the company’s share capital increase by 45 mln euro, CA Executive Chairman George Mavrocostas said today.
The government, who owns the majority of the company’s shares, announced that it will raise Cyprus Airways’ share capital and look for a potential buyer, due to the carrier’s continuing financial losses.
Speaking to the Press here today, Mavrocostas noted that the company is important for the Cypriot economy and added that “we will do all that is necessary to maintain its operation”, since “there is no alternative solution”.
Shutting down Cyprus Airways, he noted, would result to 180 mln losses for the state, with further repercussions for the economy, while it would influence the transportation of estimated arrivals of 400 thousand tourists this year.
The company recently proposed a rescue plan, which foresees for wage cuts and redundancy lay offs, aiming at 17 mln euros in savings.