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View Full Version : Tough times ahead for Cyprus Airways


fruitbat
14th Apr 2013, 15:07
I guess with Cyprus itself being in such a mess it was only time before Cyprus Airways found itself in trouble. Huge losses last year and a government that has no more money to bail them out.

Very sad days for all those concerned..

Near bankrupt Cyprus Airways to keep flying (http://www.brecorder.com/business-a-finance/industries-a-sectors/114602-near-bankrupt-cyprus-airways-to-keep-flying.html)

Sadly it would seem some of the unions can't see the trouble the airline is in. Let's hope a deal can be done but it looks as if it will be painful...

NEW: Cyprus Airways Union rejects restructuring proposal - Cyprus Mail (http://www.cyprus-mail.com/cyprus/new-cyprus-airways-union-rejects-restructuring-proposal/20130411)

kotakota
14th Apr 2013, 20:05
The ' financing needs ' of Cyprus Airways are only to keep paying the pilots ridiculous amounts of money for doing the square root of eff all , and to keep funding similar crazy redundancy payouts for anybody involved with Europes greatest gravy train .
The unions are totally irresponsible .If Balpa behaved in a similar way , BA would no longer exist .
The sooner it goes the better for the poor beleaguered taxpayers in that formerly great little island .

fruitbat
14th Apr 2013, 21:14
Restructuring deal announced, not pretty....

Cyprus Airways deal done - 490 layoffs, wages slashed (http://famagusta-gazette.com/cyprus-airways-deal-done-layoffs-wages-slashed-p18953-69.htm)

cyflyer
16th Apr 2013, 04:30
It fails to mention that the fleet will be cut down to 6 aircraft, plus one spare, as its been mentioned in the local news. An aeroclub, rather than an airline.

Here is a comment on the local newspapers' articles that summarizes typical management lossmaking decisions:
They bought (ok, leased) the two Airbus A321's from Jordan last year, they had them re-painted, kitted out with new higher density seating to cater for the London and Paris routes, at great expense, they were essentially to replace the "unsuitable" A330's that were being disposed of. They are now sitting idle at Larnaca waiting to be sold. Why ? Because no one in the company had the brains to tell them that Royal Jordanian were using the aircraft in lower seat capacity and therefore have lower power engines because they operated at a lighter load, and when CA increased the capacity and hence heavier operating loads, the engines could not climb the aircraft above 30,000 ft ! whilst flying to London, which rendered them quite useless for the purpose

Walnut
16th Apr 2013, 13:51
They lost 56M euro in 2012 with 12 a/c, ie about 5M euro per a/c, with about 100 staff per a/c. So if they now halve the fleet and halve the staff the numbers will be the same. They will lose about 30M euro in 2013 and they are committing to pay large redundancy on top. So no change. I am told that just about anyone with influence in the airline or Govt gets a free ride. An airline this size just can not survive

Phileas Fogg
16th Apr 2013, 14:17
Eurocypria came about because of the problems with the Cyprus Airways union(s), overnight the services would switch from Cyprus Airways to Eurocypria in the event that the union(s) pushed their luck.

Time, indeed years, went by, the beancounters decided that Eurocypria was too expensive an insurance policy to maintain and now the union(s) feel they are back in charge!

eu01
16th Apr 2013, 14:57
Lend them O'Leary together with the abolition of airport charges, done.

TSR2
16th Apr 2013, 15:47
So if they now halve the fleet and halve the staff the numbers will be the same.

Maybe, but at greatly reduced salaries.

Walnut
18th Apr 2013, 06:01
I am not convinced the numbers add up, Yes much lower salaries but in most airlines staff costs are about 20%. This airline is losing e5M per a/c per yr, or e14K per day per a/c. This are staggering sums, either their revenue is being "lost" or there are some fraudulent transactions taking place.

The SSK
18th Apr 2013, 08:19
I am not convinced the numbers add up

Revenues are covering about 75% of costs. That kind of annual figure is clearly not sustainable but is not unique among small national carriers. A combination of circumstances can bring you that low without involving corruption or malpractice.