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CAIR: Council of Min approves state support

20/01/2011 13:57
The Council of Ministers approved on Thursday the Finance Ministry’s proposal for the support of Cyprus Airways by the taxpayers with €20 million due to the losses that it suffers from the embargo of its flights over Turkey.

According to Government Spokesman, Stephanos Stephanou after the end of the meeting, the Ministry’s proposal, which must be approved by the Parliament, will be promoted on condition that the CAIR employees will reach an agreement for their own contribution of €12 million for the survival of the company.

The proposal must also be approved by the European Commission.

It is the second time that the taxpayers are called to pay for the support of the national carrier, which had prepared a survival plan in 2006.

In 2010, the state paid €35 million to save, Eurocypria, which is currently until voluntary liquidation.

In the context of consolidation, the CAIR Management has already taken measures of €30 million for the reduction of the operating expenses.

The proposal on the contribution of the employees is currently under discussion by the Labour Council of the Labour Ministry.

It is estimated that CAIR suffered losses of €30 million in 2010 and according to the Finance Ministry’s scenario, they will face liquidity problems by May, if no consolidation measures are taken immediately.