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CAIR: A painful rescue

10/04/2013 14:40
The Council of Ministers took the political decision to rescue Cyprus Airways, however, Government Spokesman, Christos Stylianides stressed emphatically that the political decision should be accompanied by an agreement that will arise between the Board of Directors and the trade unions.

According to Mr. Stylianides, the Council of Ministers decided to keep the company alive, especially this sensitive period for the tourism industry on condition that the parties involved will agree on the bailout of the company soon.

"There are basic requirements for taking the necessary consolidation and restructuring measures and they should be accepted by all. And then, we will assess whether the company will be able to stay alive as is the government’s objective”, the spokesman said.

“Also, efforts are being made so that deliberations include the contribution of individuals for the direct increase of liquidity in various ways”.

Despite the persistent questions by journalists to give further details on the rescue plan, the government spokesman declined to answer, noting that the plan will be negotiated between the company and the employees with the intervention of the bi-ministerial committee.

According to information leaked, the rescue plan provides for fleet reduction from 10 aircraft to 6 plus a spare, staff reduction between 450-550, empowerment of the mechanical part, courtesy of the catering department to the private sector and change of routes.

CAIR losses in 2012 amounted to €55,8 million against losses of €23,9 million in 2011.

The total income of the company decreased by 17.6% to €175,5 million from €212,9 million.

In 2008, revenue had reached €311,4 million due to the increase in the fuel surcharge and the passenger numbers.