Cptplaystation,
Probably you are right about the demand PFO base will have. And it might end up the way you are saying. However I would imagine that for 'politics' they might want to hire a handfull of locals, just to show that they created jobs in the Island. I heard through the grapevine that there have been negotiations between the Cypriot authorities and FR management, regarding the base and airport fees. After all, is all a give and take process when doing buisiness, and aviation is exactly that.
Shaman,
I would imagine FR are targetting local traffic also. Cyprus Airways are having lots of financial trouble at the moment, and rumor has it they are on their way down. FR opening up a Cyprus base could not have been better timed.