Following continued heavy losses, Cyprus Airways have announced their latest regeneration plan -:
" CY is currently £40 million in debt and is expected to run out of cash by November if current heavy losses continued.
However, the 2,000 highly unionised staff are already viewing the plan, which among others, foresees the guaranteed layoff of 172 workers, while hundreds more could follow suit.
The plan covers five areas: flight network and fleet composition, commercial and billing policies, organisational structure, cost cutting and group company structure – subsidiaries.
The plan suggest the termination of three routes: Birmingham, Warsaw and Budapest as well as flight cuts to Manchester, Stansted, Amsterdam, Frankfurt, Damascus and Milan.
The company plans to sell its two A320 aircraft while more could follow if Hellas Jet, CY’s subsidiary in Greece, shuts down and its three A320s join the CY fleet.
CY aims in maintaining a fleet of 10 aircraft and enter alliances with other companies. "
As an EU member state, the looming threat of open competition in what is essentially a BA / CY closed market does not bode too well for the future of CY
TACCY