JU068
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RE: Cyprus Airways: Investor Or Close Down

Sun Apr 14, 2013 7:29 am

Late last night a deal between the government, Cyprus Airways board and unions was reached.

It includes the following:

1. A redundancy package for 490 members of the staff, down from 560 initially planned.

2. Agreement was also reached on providing redundancy compensation for the 490, with the level concluded at 50 per cent of the compensation paid in the last redundancy plan.

3. Redundancies will take effect from January 1, 2014, while payment will be divided in to six instalments during a three-year period.

4. Airline’s provident fund, €6m will be covered by a general finance ministry plan on provident funds, while the remaining €12m will be covered through the sale of CY property.

5. The payroll will also be reduced by 17 per cent in total. CY chairman Stavros Stavrou said the company has already introduced a 9 per cent cut, meaning an extra 8 per cent cut will now be implemented.

6. All pilots will receive a horizontal pay cut of 17 per cent while the remainder of the staff will see staggered wage cuts, starting from 7 per cent for those earning under €1,000, going up to 20.5 per cent for high-earners.

http://www.cyprus-mail.com/ailing/deal-clinched-save-cy/20130413
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Sun Apr 14, 2013 5:46 pm

Quoting JU068 (Reply 200):
while the remaining €12m will be covered through the sale of CY property.

LHR slots?  
 
CYatUK
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 15, 2013 11:41 am

Quoting JU068 (Reply 200):

Late last night a deal between the government, Cyprus Airways board and unions was reached.

It includes the following:

1. A redundancy package for 490 members of the staff, down from 560 initially planned.

2. Agreement was also reached on providing redundancy compensation for the 490, with the level concluded at 50 per cent of the compensation paid in the last redundancy plan.

3. Redundancies will take effect from January 1, 2014, while payment will be divided in to six instalments during a three-year period.

4. Airline’s provident fund, €6m will be covered by a general finance ministry plan on provident funds, while the remaining €12m will be covered through the sale of CY property.

5. The payroll will also be reduced by 17 per cent in total. CY chairman Stavros Stavrou said the company has already introduced a 9 per cent cut, meaning an extra 8 per cent cut will now be implemented.

6. All pilots will receive a horizontal pay cut of 17 per cent while the remainder of the staff will see staggered wage cuts, starting from 7 per cent for those earning under €1,000, going up to 20.5 per cent for high-earners.

Well, one may think that these are good news however, the fact that they have reached an "internal" deal for downsizing CY, doesn't automatically stop the EU inquiry.

[Edited 2013-04-15 04:41:46]
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 15, 2013 6:36 pm

So MEA's people are coming to Cyprus tomorrow, with the CEO coming as well.
 
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 8:58 am

In Cyprus for discussions in relation to a possible acquisition of Cyprus Airways are representatives of the Lebanese airline Middle East Airlines. Reportedly, representatives of the Lebanese company will meet tomorrow, Tuesday, at noon with the representatives of Cyprus Airways for discussion. Lebanese expected to meet with the Minister of Transport, Tasos Mitsopoulos to put their proposal on the table. Meanwhile, waiting are Cyprus Airways and the outcome of their discussions with the Chinese giant who was in Cyprus in recent days.

Reportedly seems that besides the Chinese and Lebanese interest for Cyprus Airways has expressed interest in a third company.
Bad Google translation, but you get the point  http://www.sigmalive.com/news/local/40464
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 12:36 pm

The representative's of MEA had meetings with the board of directors of CY & also the Minister of Finance. They should be departing the island tonight, hopefully there is some sort of announcement tonight or tomorrow.
 
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mercure1
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 3:46 pm

It still seem the future of CY not clear.

Also even of MEA invest, they are not European so they also have limit on being able to take control and directly manage company. Would still leave mess I think with MEA as minority investor and cannot make the hard changes needed.
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VCy
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 4:20 pm

Quoting mercure1 (Reply 206):
Also even of MEA invest, they are not European so they also have limit on being able to take control and directly manage company. Would still leave mess I think with MEA as minority investor and cannot make the hard changes needed.

Jat and Etihad are an example. Etihad only has 49% of the airline therefore not being the majority stakeholder.
 
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LAXintl
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 6:56 pm

What Etihad 49% in JAT?

The Etihad CEO today said "Etihad chief executive James Hogan told a news conference on Monday that any investment could be a long way off.
"We have to look at JAT to see if that opportunity exists. It is still a very early stage of that process," he said.


Anyhow EY seems to be on a buying spree - Air Seychelles, Aer Lingus, Air Berlin, etc so they like to collect companies even if they cant directly manage them.


But for MEA, I would pity MEA if it gets stuck with CY and is unable to run a full restructure and clean house as needed. A 49% minority ownership can be a very difficult spot for MEA to be in with the EU laws.

Look at TK-BH Airlines experience. It turned into a mess as TK could not make changes without Bosnian approval. TK had the CEO, but Bosnian's had the chairman that could veto the CEO.

Ultimately this is the same reason why TK decided not to bid on LOT. Without full control, the minority owner essentially becomes the money man, but without the authority to fully implement things.


Better situation in my view would be a bank, or investment group to fully gobble up CY and then work to launch a major overhaul. They can do this in cooperation with another airline like ME, but having full ownership and control makes a big difference.
From the desert to the sea, to all of Southern California
 
DutchBoeing
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RE: Cyprus Airways: Investor Or Close Down

Tue Apr 16, 2013 9:29 pm

I still don't see what MEA would be gaining by taking a share in CY. LCA is right next door to BEY, so why stimulate two hubs so close together and let them compete? I also don't see how CY being based in EU could help them. I don't see them making a dual transfer-point work, where CY would concentrate on EU and ME on Asia (i.e. make pax fly MAN-LCA-BEY-DEL or something - who in their right mind would do this?). So what would be in it for MEA? If anything I suspect them stepping in to easily kill this competition next door and make it look like an accident...   (Or at least this exercise gave them a good look through the CY-books...). So... why is MEA interested?
 
OD720
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RE: Cyprus Airways: Investor Or Close Down

Wed Apr 17, 2013 6:28 am

According to reports, the talks with MEA are at a very early stage. Probably both parties exchanged some ideas and shared their views. Such deals usually take some time. MEA is a well managed company nowadays and they like playing safe so I think it would be a good thing for CY.
 
panais
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RE: Cyprus Airways: Investor Or Close Down

Wed Apr 17, 2013 7:34 am

Quoting mercure1 (Reply 206):
Also even of MEA invest, they are not European so they also have limit on being able to take control and directly manage company

Here is how it works. A lawyer in Cyprus, creates a Cyprus registered company, lets call it MEA Cyprus ltd. Owners of this company is a trustee (i.e. the lawyer) who has a special vehicle agreement with MEA of Lebanon with lets say initial capital of 1 million euro. MEA Lebanon transfers said amount of money into the Cypriot Bank account of MEA Cyprus Ltd. MEA Cyprus ltd makes an offer to CY shareholders for a penny a share and gets 100% of shares in CY.

Quoting DutchBoeing (Reply 209):
I still don't see what MEA would be gaining by taking a share in CY.

I believe that this is all about economies of scale. CY planes fly with well above average capacity. They have similar airplane families, maybe MEA sees something in CY technical department. On the other hand, MASCO, MEA's technical support and maintenance has CY as a major customer.

Additionally, those LHR time slots might be attractive to MEA.

Furthemore, if MEA is looking into creating a super regional, high frequency airline with operations in all regional airports including TLV, CY is a major part of that strategy. Same applies for all Cypriots flying to IST through BEY. Add to that the major Russian traffic to Cyprus and you have a very good business opportunity that screams to MEA.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Wed Apr 17, 2013 7:36 am

Any ideas what MEA will seek to benefit from in case of some sort of an investment?
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 7:17 am

According to Cypriot media the Chinese are presenting their proposal to the government today.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 8:02 am

Quoting JU068 (Reply 213):
According to Cypriot media the Chinese are presenting their proposal to the government today.

And also that 3 Asian companies have showed an interest. Hopefully the media gets to know the Chinese plan  
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 2:03 pm

There are some very very low fare across CY's schedule. Check the website if you are about to travel   found flights to Heathrow return for 170 euros all taxes included during Easter.
 
vv701
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 2:18 pm

Quoting VCy (Reply 215):
flights to Heathrow return for 170 euros all taxes included during Easter.

For anyone confused by this, the Greek Orthodox Easter Sunday is on 5 May.
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 2:24 pm

Quoting VCy (Reply 215):
There are some very very low fare across CY's schedule. Check the website if you are about to travel  found flights to Heathrow return for 170 euros all taxes included during Easter.

I guess these fares reflect the drop in bookings ! Its all very unstable at the moment. I guess if you book with a credit card you would be covered in the event of a sudden shut down.
 
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mercure1
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RE: Cyprus Airways: Investor Or Close Down

Thu Apr 18, 2013 3:43 pm

Quoting panais (Reply 211):
Here is how it works. A lawyer in Cyprus, creates a Cyprus registered company, lets call it MEA Cyprus ltd. Owners of this company is a trustee (i.e. the lawyer) who has a special vehicle agreement with MEA of Lebanon with lets say initial capital of 1 million euro. MEA Lebanon transfers said amount of money into the Cypriot Bank account of MEA Cyprus Ltd. MEA Cyprus ltd makes an offer to CY shareholders for a penny a share and gets 100% of shares in CY.

Except such is not possible in aviation sector. Just setting up European shell corporation by majority foreign ownership still not allowed.

Look at the difficulty Aeroflot has had trying to invest in EU. Multiple occasions they were interested in participating in acquisition of Eastern Europe airlines, but they cannot participate and become majority owner.

Quoting OA260 (Reply 217):
Its all very unstable at the moment. I guess if you book with a credit card you would be covered in the event of a sudden shut down.

You have entire sector of travel agents avoiding CY these days. French association of travel agents advise members to avoid CY for example. I believe its the same in Belgium and some other places also. Too dangerous for clients as they might lose money, or have holiday changes or cancel if they risk CY.
mercure f-wtcc
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 10:31 am

CY is launching DOH soon. Flight will be operated three times a week, with a mixture of A319 & A320.
Schedule is Tuesday, Wednesday, Saturday LCA-DOH 22:30-02:00

Wednesday, Thursday, Sunday DOH-LCA 02:55-06:40
Hopefully there is a codeshare agreement with QR, so that we have the ability for onward connections.
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 11:02 am

Quoting VCy (Reply 219):

Well, I guess they will be operated with A320s as it was announced that the A319s will leave the fleet, unless they changed their mind.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 11:31 am

Quoting JU068 (Reply 220):
Well, I guess they will be operated with A320s as it was announced that the A319s will leave the fleet, unless they changed their mind.

I hope so! Not a fan of A319s  
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 2:49 pm

More bad publicity for Cyprus Airways. A flight to Thessaloniki, operated by an Airbus A320 with 67 passengers onboard, was forced to return to the airport due to a problem with the computer system. The flight took off a few hours later when after 30 minutes it was forced to return to the airport... once again.

The first departure from Larnaca was this morning at 11:50, the second departure was at 14:30 while the third one is scheduled for tonight at 20:00. Airline authorities said that they did not have another aircraft to send to Thessaloniki earlier than eight o'clock.
 
DutchBoeing
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 3:11 pm

Quoting VCy (Reply 221):
I hope so! Not a fan of A319s  

Why not? Aren't they newer than the A320's? I personally prefer A319's over A320's, but don't know why really - on the inside you can't see the difference anyway (I mean generically speaking).
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 3:47 pm

Quoting VCy (Reply 221):
I hope so! Not a fan of A319s  

I have to say I like the A319s  
 
rutankrd
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 5:17 pm

Quoting JU068 (Reply 222):
More bad publicity for Cyprus Airways. A flight to Thessaloniki, operated by an Airbus A320 with 67 passengers onboard, was forced to return to the airport due to a problem with the computer system. The flight took off a few hours later when after 30 minutes it was forced to return to the airport... once again.

The first departure from Larnaca was this morning at 11:50, the second departure was at 14:30 while the third one is scheduled for tonight at 20:00. Airline authorities said that they did not have another aircraft to send to Thessaloniki earlier than eight o'clock.

Scheduled with the good old + One frame

5B-DBB C/N 256

Such confidence they have in this aircraft these days it rarely goes further afield than Athens Thessaloniki Beirut and Tel Aviv
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Fri Apr 19, 2013 5:34 pm

Quoting rutankrd (Reply 225):
Scheduled with the good old + One frame

5B-DBB C/N 256

Such confidence they have in this aircraft these days it rarely goes further afield than Athens Thessaloniki Beirut and Tel Aviv

Plus this is the aircraft that is supposed to be parked once the new plan kicks in, it is 21.4 years old but it seems that it was stored from 2009 to 2011. Does anyone know why it was stored and why they brought it back?
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 10:36 am

Apparantly Aegean are looking at expanding the LCA hub and starting LCA-BEY and LCA-TLV. With the LGW-LCA route going I guess they feel the aircraft would be better used on more valuable markets.
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 11:07 am

Quoting OA260 (Reply 227):

Do you know when/why are they discontinuing their Gatwick flights?

MEA will be increasing Larnaca from daily flights to ten weekly. Morning flights are:

1---56- LCA-BEY 10:15-11:00 /// 08:55-09:35

[Edited 2013-04-20 04:10:59]
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 11:33 am

Quoting JU068 (Reply 228):
Do you know when

Last flight 9th May . Those affected being offered Via ATH or full refunds.

Quoting JU068 (Reply 228):
why are they discontinuing their Gatwick flights?

Because they are going to use the aircraft for higher yielding routes.
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 11:38 am

Quoting OA260 (Reply 229):
Because they are going to use the aircraft for higher yielding routes.

It is a shame they couldn't make money on this route during the summer season. Let's hope they return to London from Larnaca once the economic situation improves.
 
DutchBoeing
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 6:04 pm

Quoting JU068 (Reply 230):
Let's hope they return to London from Larnaca once the economic situation improves.

Wait, what? Have the officially axed LHR now as well? I missed that completely...
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 6:12 pm

Quoting DutchBoeing (Reply 231):
Wait, what? Have the officially axed LHR now as well? I missed that completely...

Yes its gone totally.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Sat Apr 20, 2013 8:01 pm

http://www.dailystar.com.lb/Business...-airlines-talks.ashx#axzz2R2FYVwhq
MEA confirms that they are interested in CY. However the article states that we may have to wait until the end of May to find out what will happen. Also, what do they mean by "Sources said that the cost of networking for Cyprus Airways was much cheaper than MEA."

Would also appreciate it if someone that understood Arabic could translate this video for us?  http://www.lbcgroup.tv/news/86079/re...le-east-airlines-buy-cyprus-airway
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 5:26 am

Here is another interesting article on the fees at both Cypriot airports. However, I doubt Ryanair or Wizz Air paying the full fees.

http://www.cyprus-mail.com/airport/a...charge-still-thorny-issue/20130419
 
OD720
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 10:12 am

Quoting JU068 (Reply 234):
Would also appreciate it if someone that understood Arabic could translate this video for us?  http://www.lbcgroup.tv/news/86079/re...le-east-airlines-buy-cyprus-airway

I saw that report on LBC and from memory it says that CY first contacted MEA about a year ago but MEA didn't seem interested as CY was a hugely loss making company.
This year however, CY contacted again with a new formula which includes laying off 50% of the workforce and 17% salary cuts and other unspecified shuffle. This did attract MEA's interest and the meeting in Cyprus was positive and there will be further talks between the 2 sides.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 10:27 am

Quoting OD720 (Reply 235):
This did attract MEA's interest and the meeting in Cyprus was positive and there will be further talks between the 2 sides.


Does anyone have any idea what MEA will benefit from such an investment?
 
OD720
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 10:48 am

Quoting VCy (Reply 236):
Does anyone have any idea what MEA will benefit from such an investment?

Could be that they want a way to the North American market? Just an idea.
 
rutankrd
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 10:59 am

Quoting OD720 (Reply 237):

Quoting VCy (Reply 236):
Does anyone have any idea what MEA will benefit from such an investment?

Could be that they want a way to the North American market? Just an idea.

I think there may yet be issues with the FAA if and when the CY/ME partnership is sanctified.

It remains the best Beirut-US opportunities are via Paris or Istanbul.
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 11:02 am

Quoting rutankrd (Reply 238):
It remains the best Beirut-US opportunities are via Paris or Istanbul.

Why would there be a problem if the flights were operated with CY aircraft? An A330-200 could do LCA-JFK, maybe a lease by MEA?
 
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OA260
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 11:15 am

Quoting VCy (Reply 239):
Why would there be a problem if the flights were operated with CY aircraft? An A330-200 could do LCA-JFK, maybe a lease by MEA?

If it was CY aircraft that originated in LCA then I don't see an issue but if the flight originated in BEY there maybe. They may see it the same as a direct non stop in regards to security. The whole flight would need to have passengers off ,screened and bags re screened.
 
rutankrd
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RE: Cyprus Airways: Investor Or Close Down

Mon Apr 22, 2013 11:56 am

Quoting VCy (Reply 239):
Why would there be a problem if the flights were operated with CY aircraft? An A330-200 could do LCA-JFK, maybe a lease by MEA?

May be okay if registered in Greece !

Ironically this might to allow over flight of Turkey, and Central Europe, North Atlantic on a great Circle route - But like thats happening any time soon ?

Having monitored the debate for some weeks reluctantly I am turning towards the view that Cyprus Airways as currently incorporated is beyond saving .

The airline has made to many mistakes and had as many missed opportunities in the last few years.
They have also been subjected way too many external issues - the Arab spring , the Intafada, and the ME3 that have put paid to what might have been a valuable Hubbing strategy - Another carrier also on a small isle (East of the desert) seems to have similar near terminal issues (Gulf Air).

As i have said before RIGHT NOW with the economic crisis the politicians at each end of Ledra Street should be redoubling their efforts at a solution and Federation of the whole island including the UK military areas.
 
JU068
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RE: Cyprus Airways: Investor Or Close Down

Wed Apr 24, 2013 9:50 am

At least it seems that Paphos will do just fine this year. Currently there are nine charter flights on their way from the United Kingdom (5x B738 and 4x B752).
 
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LAXintl
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RE: Cyprus Airways: Investor Or Close Down

Thu May 02, 2013 8:45 pm

According to this story, the CY board met on Thursday and was commencing the process of cancelling aircraft leases, and also adjusting its flight schedules.

More info should be available after the Orthodox Easter.

RESTRUCTURING UNDER WAY
http://www.incyprus.com.cy/en-gb/Sho.../34711/ca-restructuring--under-way

=
From the desert to the sea, to all of Southern California
 
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mercure1
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RE: Cyprus Airways: Investor Or Close Down

Fri May 10, 2013 6:16 pm

It seems the Lebanon Central Bank Governor says the government would not approve MEA plans to acquire CY as it would create big risk for the Lebanese carriers. The Lebanon government is the majority shareholder in MEA.

http://www.dailystar.com.lb/Business...rus-airways-bid.ashx#axzz2SumM9hUf
mercure f-wtcc
 
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LAXintl
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RE: Cyprus Airways: Investor Or Close Down

Sat May 11, 2013 6:43 pm

Lebanese government is playing it safe.

Simply being the money man without ownership control is a bad situation to be in.

ME itself is not very big and could be risking its own existence by getting involved with CY.
From the desert to the sea, to all of Southern California
 
VCy
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RE: Cyprus Airways: Investor Or Close Down

Sat May 11, 2013 7:05 pm

 
GB777
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RE: Cyprus Airways: Investor Or Close Down

Wed May 15, 2013 8:36 am

 
CYatUK
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RE: Cyprus Airways: Investor Or Close Down

Wed May 15, 2013 9:33 am

Quoting GB777 (Reply 247):
The end of the road for CY ?

I think what is not mentioned in the report is that the Board's decision came just after the Government's decision to hire external Consultants to oversee the implementation of the restructuring.

The hire of external Consultants will automatically mean that the Board's role is minimized hence this may explain the reasons behind the resignation.

I don't think it is the end of the road for CY yet - I would expect any big decisions in late Autumn.
 
raffik
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RE: Cyprus Airways: Investor Or Close Down

Wed May 15, 2013 9:34 am

The Lebanese Central Bank, that owns a vast percentage of the airline (MEA) has said that they will not provide funding for MEA to make the purchase of Cyprus Airways as it would be too risky for the airline.

MEA is still interested but they would need to raise the funding independently, which they can do but I now think this makes it very unlikely that the airline will go ahead with the purchase.

Very sad for CY, I think they are going the same way as OA. When an A321 fails to make money on a service to Heathrow something is definitely wrong. I'm wondering if they'd be better off with Embraer 170s and perhaps one or two A319s for their London routes.
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