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CAIR market share covered

08/04/2015 11:11
The market share of Cyprus Airways before its closure last January has been more than covered based on initial indications, according to Finance Minister Haris Georgiades.

In a letter to the Parliament, the Minister of Finance notes that the time that has passed since the closure of the company is too short to assess the effects on the level of competition.

The impact, he said, will be possible to be evaluated after the end of the year.
He also noted that the process of the expression of interest from serious investors for the use of assets of Cyprus Airways is underway by the inspector of privatizations.

He added that the call for expressions of interest for investments will concern the licensing or granting the right to use the logo and name of CAIR.

No money in the provident fund

As for the deficit in the provident fund of CAIR employees apart from pilots, the deficit is not due to the non-payment of contributions, according to the Finance Ministry.

As highlighted, the yield of the provident fund was guaranteed by CAIR company and it had to pay contributions to cover the performance of the fund after the preparation of the annual audited accounts.

CAIR in recent years, as added in the letter, because of the financial difficulties it faced, did not pay any amount to cover the annual yields of the provident fund and as a result the accumulated deficits of the fund increased.

Regarding the non-payment of compensations to members of the provident fund of CAIR pilots, the ministry sought legal opinion from the Advocate General Costas Clerides.

The letter concluded that the government in the exercise of its social policy, following the decision of CAIR Board of Directors for the initiation of the voluntary liquidation of the company, decided to directly support the members of the provident fund of CAIR employees, excluding pilots.