The link below gives information on the latest manoeuvres to try to stave off bankruptcy for a while longer.
Cyprus Airways - Cyprus Mail
Basically the pilots union wants a new board as they think the current one is only driving the carrier further into the wall with an ill conceived restructuring. The disagreement has escalated with first the pilots then the company taking half page paid advertisements accusing/refuting allegations from the other side.
Earlier this week the government voted to "subsidise" CY to the tune of €5.3m for their inability to overfly Turkey.
Meanwhile CY are awaiting the delivery of 2 ex MEA A321s on lease from ILFC the first being due on 1/7. Unfortunately as can be seen from their on-line timetable the first one, at least, should have been in service from the beginning of this month leading to re-bookings and/or transfers to other airlines where the booked load exceeds the capacity of the A320 substitute.
Being one of the last fully state owned airlines in the EU is doing them no favours with ever increasing competition from the LOCOs such as Ryanair, EasyJet, Jet2 and the Russians etc. CY has long been known as a haven for Civil Servants on top wages and conditions who have risen to the level of their own incompetence and still have a huge staff/aircraft ratio. With a communist lead government any staff/conditions reduction is bound to be met with great resistance from government and workers alike.
The pilots probably have a point but whether anyone will listen before it is too late remains to be seen.