Double articles today from the Cyprus Mail online edition. Of course, all of this is about money, but if that leads to safety reforms (see new thread started today regarding the revamping of the Cypriot Aviation Authority), then I say hats off to the media for keeping this issue in the public eye.
Pressure from the tour operators?
By Jean Christou
VARYING reports have surfaced in the tourism industry as to what is behind Libra’s push to rename Helios Airways as ajet.
Clearly, when an airline is involved in an accident, there can be an impetus to change name to try and salvage what business a company might have left.
Speculation is rife as to whether the airline, which brings in a substantial 250,000 tourists to Cyprus, has come under pressure from jittery tour operators. However, many in the industry say this is not strictly correct.
“Certainly, we want everything about this company to be cleared up as soon as possible,” said an official industry source. “We don’t want any question marks either about names or about changing status or who is responsible and who is not. It’s not good for tourism. We want clear answers from everyone.”
The source admitted that although Helios was a significant player in the industry and important for Cyprus tourism, the issue of the families of the victims was also very important. “That’s why government officials don’t say much. They might be scared of the reactions.”
As far as foreign tour operator go, the source said that they also would like to see the status of Helios-ajet clarified, although he denied reports of actual pressure on the airline by tour operators.
“They have business with them, they have plans with them and they have contracts with them and they are just asking for a clear picture of the situation,” he added.
Noel Josephides, vice chairman of the UK-based Association of Greek Cypriot Travel Agents (AGTA) said there had been no pressure on Helios from any operator.
“In England, everyone forgot what happened after about two weeks. Once the publicity died down that was it,” he said. “We all carried on booking Helios.”
However, Josephides believed the aftermath of the last year’s crash had been very badly handled, both by the government and by the airline itself, something he put down to lack of experience.
“We found the media frenzy that followed it just insane and badly informed. People just came out and said anything they liked,” he said.
“But there’s absolutely no pressure from UK operators for Helios to change its name.”
Josephides said he did not see why the company needed to change its name. “Helios was a better known name and a lot of time was spent in building up that name. Tour operators probably prefer the old name remained. Certainly no one from Greece and Cyprus will forget or perhaps want to fly, but I put the blame for this on the bad handling in the aftermath by the authorities, the press and management of the company itself due to inexperience,” he added.
Josephides said people had forgotten it was Helios that had sparked the dramatic fall in fares that Cyprus had seen in recent years, which led Cyprus Airways to follow.
“Helios was the pioneer in creating a no-frills sector for Cyprus and completely transformed the way tourism worked, so to damn the airline is very wrong. I understand the emotional part, but this airline did an enormous amount to transform tourism flow to Cyprus,” he said.
But times continue to be difficult for the airline. Sources close to the company say they are at a loss to understand why such a fuss has been created over the name change.
“The company has lost two contracts and is currently seeking to substitute that business. Helios brings in 235,000 tourists into Cyprus, but it seems the government doesn’t understand or want to understand this aspect,” said the source.
“This has tremendous financial implications. There is more demand than supply in the airline business at the moment and in the slots that Helios had,” the source added, saying that the airline had sold three of its slots, one each in Norway and France and one in Amsterdam.
“Damage is not only being done to the airline itself but to the island as a whole. What has been lost is lost and the only reason they have been lost is because of the delay that occurred in the name change,” said the source.
“Unfortunately it seems no one is being put in the picture. This is not the first time Libra has bought a company and changed its name. It did it with Excel Airways, and by European law an airline should be able to change its name.”
Copyright © Cyprus Mail 2006
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Helios or ajet: much ado about nothing?
By Jean Christou
TRYING to figure out what exactly is going on with the Helios-ajet saga is a little like attempting to extract blood from the proverbial stone.
No one wants to stick their neck out for fear of upsetting someone, especially the relatives of the 121 victims of last August’s doomed Helios flight.
There is a general perception gleaned from certain media outlets that Helios is attempting to avoid its responsibilities towards the families, while the official side appears to be stalling on taking a decision on the future of the airline. As usual, the truth lies somewhere in between.
Last month, Libra Holidays Group, which owns Helios, announced the creation of a new airline named ajet, to which the assets of Helios would be transferred. Staff would also be the same. Libra said Helios would continue to exist as a legal entity to fulfill its responsibilities, but would no longer be flying.
This was greeted with a certain public outrage, particularly as the ajet launch appeared to be going ahead without having obtained the required licences from the Civil Aviation Department.
Reports then surfaced that someone in the department was pushing the ajet application forward in a hurry, and an investigation has been now been launched into those suspicions.
In the meantime, Libra changed tack and decided not to go ahead with the notion of a separate company, simply changing the name of Helios to ajet.
It was then that the complications began. The Helios livery had already been changed to reflect the ajet colours and logo, yet ticketing, flight codes and licences all say Helios.
The authorities say there is no legal reason why Helios cannot change its name to ajet at the Registrar of Companies, as this is done every day by companies all over Cyprus. The Attorney-general backed this up, so why is the issue still causing grief to the Civil Aviation Department?
“The company has changed the name. However, the procedure for an airline, because it is not just another company, is different,” said a source in the airline industry.
The source said airline manuals state quite clearly that if a company wants to change its name, it must give 30 days’ notice to civil aviation authorities, “which means that before you carry out a name change, you have to have the permission from civil aviation”.
“Civil aviation also has the responsibility to see the reason for the name change. Is it a straightforward name change? Does it affect anything in the ownership. From that point of view, it is all procedural,” the source said.
He said that once this approval was granted the airline could go to the Registrar of Companies and ask for a name change. This, he added, was the proper procedure.
“Unfortunately, this company did it the other way around. They went and changed the name first and the problem now is that ajet is flying with a certificate that says Helios Airways, but if you go into the Registrar of Companies you will not find a Helios Airways Ltd, you will find ajet Aviation Ltd.”
The source said it was likely in this case that the Registrar might not have been aware there was a different procedure for airline name changes, although the requirement is not written into law. “But they did act correctly, because they sent it to the Attorney-general and he said to go ahead because the law is such that you cannot refuse a name change of a company,” the source added.
“The problem is that within the company they should have first gone to civil aviation rather than other way around. The responsibility is also on the airline to follow the correct procedure because it is stated quite clearly.”
In defence of Helios, the source said the issue was merely procedural. “Nothing has changed from the point of view of liabilities or obligations,” he said. “The company is still the same, the shareholding is still the same. It’s just a marketing move.”
He said the issue now was of civil aviation having to decide on ‘post-name change’ permission. “But because of various reactions and the sensitivity of the case and the attempt of the airline to create another airline, that is where things stand, which has made people suspicious,” said the source.
He said civil aviation had 30 days to reply to the ‘posthumous’ Helios name-change application, which was only filed a week ago, 10 days after the airline applied to the Registrar of Companies.
“There was no reason for civil aviation to refuse if the application had been submitted to them first,” said the source. “If you have to wait for 30 days you have to wait for 30 days. You should always follow procedure to the letter so that you motives are not called into question.”
He said that if civil aviation were to say ‘no’, which would be an extreme reaction, all that would happen would be that the airline would continue as Helios, which it is already doing to all intents and purposes.
Makis Constantinides, Permanent Secretary of the Transport Ministry, refused to be drawn on the Helios-ajet issue. “There is a procedure through which the names are changed. The department is handling the situation and it’s their decision. They are following procedures and will come up with a solution,” he said.
Copyright © Cyprus Mail 2006