You are here

€15m to CAIR on conditions

12/07/2012 12:39
The Parliament approved unanimously but under strict conditions the increase in the share capital of Cyprus Airways by €15 million instead of €31.3 million.

After amendment of the opposition parties, which was included in the law, the eight Board members appointed by the government must be replaced and selected upon the recommendation of the Finance Minister in agreement with the House Finance Committee.

For the share capital increase, according to the amendment, the government must turn to the EU institutions to seek its approval.

The new Board of Directors – in a period of three months – must submit the new restructuring plan to the House Finance Committee, which will be prepared by qualified consultants and experts of international prestige and scope.

The new plan’s objective is to make the company competitive and to attract a strategic investor who will participate in CAIR with a majority stake.

Also, the consultants or experts must be appointed within one month from the Board of Directors with the consent of the House Finance Committee, while the Finance Ministry should inform the competent committee in three months on the decisions in relation to the payment of bonus compensation to redundant staff either from the company or the state.

At the same time, in three months the new Board must inform the Parliament for the expression of interest of existing shareholders and other private individuals in participating in the share capital increase of CAIR.

Indeed if there is no interest, the FINMIN must declare whether it intends to proceed with further share capital increase or will examine any other options.

The majority of the House, according to the new text, urged the Communications Ministry to review the agreement for the provision of incentives to low-budget companies and the policy of open skies.

The remaining sum of €16.3 million will be released by the committee in October.

Overall, 17 AKEL MPs disagreed with the amendments. AKEL and the opposition were on dispute before the vote.