Mikiko wrote:High cost airlines such as Cyprus Airways are very top heavy with senior staff, and middle management. Many don't have Aviation backgrounds and are incompetent (pilots and engineering excluded). Staff per aircraft is HIGH, and so costs are high. This is why the airline has not made a profit in a very long time. Cyprus Airways could get by with 20-30% less staff. Staff levels at QANTAS for example, are 30% lower, the staff is better quality and more productive.
Its very impossible for Cyprus Airways to reduce its staff because of the strong labour unions which have big power. The same with the government everyone that enters secure a Job for life no matter what he does or what he knows.
They were considering merging the two airlines C Airways with Eurocypria to reduce recuring cost.
Firstly, I want to point out that CyAir ticket prices are not high. I believe their pricing is in line with industry norms for full service business airlines. Sometimes, ticket prices in high demand are high, particularly at short notice. That's just the way it is. They are able to charge a premium because businesses will still purchase the tickets even when ridiculously high. The average consumer can avoid these high prices at peak times by booking well in advance. What people should not do is compare full service airlines such as CyAir, with EasyJet! One is full service, the other is a no frills budget service. Two completely different airlines.
I agree with your post, and I find this very sad. Firstly, I believe CyAir should be privatised. CEOs should be appointed who are experienced in confronting these kinds of issues and tackle the unions head on. The Airline should prepare for massive industrial action which will ground the fleet after ruthless rationalisation is announced which will involve the introduction of Employee Key Performance Indicators, and redundancies being offered to dead wood in Senior and Middle management. Key Union officials should also be sacked, and the airline should be prepared to confront the industrial commission and pay heavy 'unfair' dismissal fines. New staff should be employed, and the company should focus on employing Cypriots who have the qualifications and expertise but are now working as waiters or taxi drivers. After a few weeks, this will blow over, the airline will ramp up its operations to normal levels and be unburdened by the Unions and a useless workforce. The airline could also poach key talent from overseas airlines who have undergone such a process and are not afraid of making radical decisions for the long term viability of the airline. In the short term, the company will lose a lot of money from loss of productivity, industrial action, and industrial fines.
You see, CyAir is the flag carrier for Cyprus. Once the airline deals with these issues, it will reduce inefficiency, reduce costs, increase productivity and be better placed to explore other markets and purchase new aircraft. The airline, in my opinion should look at commencing routes to certain key destinations such as New York, Singapore, Melbourne, Kong Kong and Tokyo. Other destinations such as Shanghai, Bangkok, Jakarta and Mumbai should also be explored. These are the opportunities that are within the airline's reach, if it is privatised and leaves the clutches of the RoC's inept public sector (which is almost as bad as Greece's) and once the dead wood is discarded.
The Flying Mouflon needs to expand its horizons, and I for one believe there is untapped potential.
All this is possible, but not as things stand now. In fact, CyAir may not survive in the longer term, and that would be a tragedy!