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FINMIN warns for CAIR

09/11/2010 14:55
Finance Minister, Charilaos Stavrakis warned on Tuesday that Cyprus Airways might face similar problems to those of Eurocypria in the next few months, revealing that this year’s losses will reach €30 million. He also referred to the withdrawal scenarios of the 250 Eurocypria employees, implying that they might be employed in the public sector if not by CAIR.

According to the Minister, the 250 employees will receive a redundant staff benefit and will be called to choose if they accept or not an additional compensation given by the taxpayers.

In anticipation of the Cyprus Airways restructuring plan, it will be decided whether the Company, which will seek to increase its turnover, will absorb a number of Eurocypria employees, who will go through the required appointment procedures.

Also, an early retirement plan will be prepared in CAIR, which will create additional employment prospects in CAIR for the employees of Eurocypria who cost less.

If they are not appointed by CAIR, there is a choice for the appointment of a number of employees in the public sector. “This scenario will be activated only if there are needs in the public service”, the Minister said.

As for Cyprus Airways, Mr. Stavrakis noted that in the first half of the year the Company suffered losses of €25 million, while by the end of the year the losses will reach €30 million, warning that “the capital in the company is weak and there is a serious risk in a few months to face the same problems as Eurocypria did”.

The Minister left the Parliament accompanied by police force due to the protestations of the Eurocypria employees in front of the building.