The Government has drafted scenarios to secure air links between Cyprus and overseas destinations in case the national air carrier, Cyprus Airways, folds, Finance Minister Harris Georgiades has said.
“We`re trying to exhaust all possibilities for the survival of the company. Government plans include also a worst case scenario,” he said speaking at a joint meeting of the Parliamentary Committees on Financial Affairs and Public Expenditure Control, which discussed on Tuesday the ongoing procedure aimed at finding a strategic investor for Cyprus` troubled air carrier.
“We are looking for a real investor and not a charlatan; we are prepared to sell the company to an investor or to the employees,” the Minister noted, adding that a strategic investor should have been sought as long ago as 2007, when the European Commission approved the first state aid package on a one-time last-time basis.
Georgiades said that a supplementary budget amounting to €10 mn has been submitted to compensate the employees in case Cyprus Airways closes down.
“The continuation of Cyprus Airways requires additional moves” related to further reduction of the number of employees as well as to cutting benefits, the Finance Minister said.
Communications and Works Minister Marios Demetriades said that the Government intends to auction traffic rights regulated by interstate agreements with third countries and that consultations are underway with companies to undertake flights exclusively owned by Cyprus Airways which at present are not being carried out due to financial difficulties.
He said that Cyprus Airways with a 10% market share, is expected to carry between 700.000 and 750.000 passengers by the end of the year.
Accountant-general Rea Georgiou told MPs that Ryan Air and Aegean Airlines, the two potential investors, have been invited to submit their binding proposals. According to Cyprus Airways Chairman Makis Constantinides, the two companies are interested not only in buying the company`s logo, but other assets as well, such as the engineering department.