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CAIR: Clarifications on press reports for its financial condition and future

Cyprus Airways Public Ltd, following certain press reports on its financial condition and future, which unfortunately are full of inaccuracies and misleading information disorientating the investing public, clarifies the following:

As it is known, both by the regular statements of the Chairman of the Board of Directors to the media and the previous announcements of the Company to the CSE, the investigation of the European Commission on the financial support that the Government, as major shareholder, provided to the Company in the form of rescue aid in the period 2012-2013 is in progress. In the context of this investigation, the restructuring plan that the Government prepared with the contribution of the Company and submitted to the European Commission within the framework of its request for the approval of the restructuring aid is under examination.

It is noted that many of the provisions of the Restructuring Plan have already been implemented or are in a mature stage of implementation in the effort of the Board of Directors, with the contribution of specialized firms, for the rationalization of the Company’s operations, as well as the reduction of expenses and the increase in productivity in all sectors of its activities, without affecting the security of the flight in any way, a sector in which the company holds an enviable position on a global basis. The saving of costs emerged from the release of redundant staff in Cyprus and abroad. Since last June, 400 persons have gone redundant while redundancies have not yet been completed.

At the same time and following a proposal by the European Commission, the Company is preparing – in cooperation with the competent Ministries – a Plan B in case that the Restructuring Plan is not seen positively by the European Commission. The main aim of Plan B, which is in line with the political will of the Government, is Cyprus not to be left without a national carrier with is air transport and tourism, the most significant source of revenue, being under the custody of foreign companies. Towards this direction, Plan B includes the re-operation of Cyprair Tour as an air carrier. Cyprair Tours has already submitted an application to the Civil Aviation Department for an AOC.

The Company believes that the decision of the European Commission will not be issued before early 2014.
Thursday, 24 October, 2013 - 15:39