|Quoting AF022 (Reply 7):|
Are there any online news sources giving an indication of what is up at CY? Is there a business paper from Cyrpus that could be accessed online?
is a very good source.
"CYPRUS AIRWAYS: we are ready to sell"
"By Charlie Charalambous
A WAY out of the cash-crisis threatening Cyprus Airways' continued existence, the government is prepared to sell-off the state-owned airline to any interested buyer, President Papadopoulos revealed yesterday."
Read the full article here:
Cyprus Airways have been running on very high ticket prices for many years, since no other airline would service Cyprus before (apart some Olympic Airlines routes which were equally, or sometimes even more expensive anyway). Now, thing is that they went around operating on very high costs as well (a main factor being the huge number of employees and crew along with their overblown salaries that went on for many years) making huge debts which were somewhat balanced by the great amount of income they’ve been enjoying for years, due to monopoly.
Things changed however, when Cyprus became a full member of the E.U a couple of years back and several airlines, led by Cyprus Airways’s no.1 ‘enemy’, Greece’s Aegean (and Cypriot Helios Airways which was formed a little earlier but basically flourished its operations when we became full E.U members as well – only to be stopped by the tragic 14th of August crash, but that’s another story..) were allowed to fully operate in Cyprus as well. With the introduction of significantly lower ticket fees, excellent service and new fleet, Aegean Airlines took ‘em by surprise with a great amount of Cypriot people who live abroad (mainly Greece, myself included as well) traveling exclusively with Aegean and abandoning Cyprus Airways which demanded (and still demands, despite the dramatic drop of their tickets’ price) a lot more money for the exact same routes and service.
Now, they are facing huge debts which they are desperately trying to deal with, by firing a lot of employees and largely decreasing the salary of the remaining ones among many other actions as well. Thing is that because they had to lower their ticket prices as well, so they could be somewhat competitive again, their income was decreased with it so they can’t find a way to meet their legalities now. Nobody knows what’s going to happen and if you ask me, the purchase of those brand new A330’s got them even deeper in trouble.