Cyprus-Forum.com

[CyprusNewsReport]

I agree with Paphitis. CA is more than just transport!

Sadly, perhaps due to foreign influence, too many of my compatriots have forgotten that Cyprus is our baby and like every regular GC parent, we nurture with unconditional love and endless financial support.

Each country is unique; so let others sell off their assets and responsibilities and impose fiscal performance criteria. They do not have the relentless external problems to face that Cyprus has. Cyprus can only thrive if we are unselfish.

The Aviation Industry is a very unique industry. Margins are razor thin at the moment and it is important to run a very lean ship.

I'm afraid there is no other option but to privatise in order to completely overhaul the company by employing foreign expertise that has experience in turning around an overburdened and crippled airline. It is very important that airlines do not overburden themselves with middle management, but instead invest to recruit the best pilots and engineers which keep the aircraft flying. Obviously, as stated, it might be necessary to try and poach very senior CEOs from other Airlines such as QANTAS, Emirates or Singapore, who will just come in and rustle the feathers of the unions and any underperforming middle managers and loosen the tight grip of the unions, by purging the staff and replacing them with any local talent at first as well as foreign staff to fill in the gaps in the short term. Employing senior management from overseas will not be cheap, but again very necessary!

A privatised Cy Air will mostly still be Cypriot owned because Cypriots and fund managers will purchase the bulk of the shares. The RoC Government will be able to legislate and restrict the number of shares that go to foreign hands to 49%. But privatisation of the inefficiently run National Carrier, will give rise to new opportunities. For example, the airline will be able to purchase or lease newer aircraft, explore new Trans Atlantic routes and other routes to Japan, China, Singapore and Australia. This should be the objective for our National Carrier!

Yes, it is very important to protect Cy Air, because it is a valuable resource for the country, and it is a bloody good airline and brand. Potentially, it can be in the same league as QANTAS, Singapore, and Emirates, even though it will not be as big. Just like the Flying Kangaroo (also privatised now), which is an excellent ambassador for Australia, the Flying Mouflon could and should be an equally great ambassador for Cyprus, not just in Europe and the Middle East, but also in Asia, the Asia Pacific and North America. If Cy Air continues as is, then the future is not bright, and eventually the Flying Mouflon will fold! We see this in aviation time and time again!

This is what we as Cypriots should hope for in our National Carrier! Otherwise, the Flying Mouflon will crash and burn!

It's true, it's a good carrier, I always fly CA even though it costs more, their safety record is brilliant. But I doubt the government would privatise the airline, have they talked about it?

[Paphitis]

I agree with Paphitis. CA is more than just transport!

Sadly, perhaps due to foreign influence, too many of my compatriots have forgotten that Cyprus is our baby and like every regular GC parent, we nurture with unconditional love and endless financial support.

Each country is unique; so let others sell off their assets and responsibilities and impose fiscal performance criteria. They do not have the relentless external problems to face that Cyprus has. Cyprus can only thrive if we are unselfish.

The Aviation Industry is a very unique industry. Margins are razor thin at the moment and it is important to run a very lean ship.

I'm afraid there is no other option but to privatise in order to completely overhaul the company by employing foreign expertise that has experience in turning around an overburdened and crippled airline. It is very important that airlines do not overburden themselves with middle management, but instead invest to recruit the best pilots and engineers which keep the aircraft flying. Obviously, as stated, it might be necessary to try and poach very senior CEOs from other Airlines such as QANTAS, Emirates or Singapore, who will just come in and rustle the feathers of the unions and any underperforming middle managers and loosen the tight grip of the unions, by purging the staff and replacing them with any local talent at first as well as foreign staff to fill in the gaps in the short term. Employing senior management from overseas will not be cheap, but again very necessary!

A privatised Cy Air will mostly still be Cypriot owned because Cypriots and fund managers will purchase the bulk of the shares. The RoC Government will be able to legislate and restrict the number of shares that go to foreign hands to 49%. But privatisation of the inefficiently run National Carrier, will give rise to new opportunities. For example, the airline will be able to purchase or lease newer aircraft, explore new Trans Atlantic routes and other routes to Japan, China, Singapore and Australia. This should be the objective for our National Carrier!

Yes, it is very important to protect Cy Air, because it is a valuable resource for the country, and it is a bloody good airline and brand. Potentially, it can be in the same league as QANTAS, Singapore, and Emirates, even though it will not be as big. Just like the Flying Kangaroo (also privatised now), which is an excellent ambassador for Australia, the Flying Mouflon could and should be an equally great ambassador for Cyprus, not just in Europe and the Middle East, but also in Asia, the Asia Pacific and North America. If Cy Air continues as is, then the future is not bright, and eventually the Flying Mouflon will fold! We see this in aviation time and time again!

This is what we as Cypriots should hope for in our National Carrier! Otherwise, the Flying Mouflon will crash and burn!

It's true, it's a good carrier, I always fly CA even though it costs more, their safety record is brilliant. But I doubt the government would privatise the airline, have they talked about it?

Yes it has been talked about which is one of the reasons why the RoC Government bought a controlling stake in EuroCypria.

Also, there have been discussions about the amalgamation of Cy Air and EuroCypria, and this might be because the RoC Government wants to fold EuroCypria by amalgamating it with Cy Air. The Open Skies (Competition Laws) of the EU are also pushing for privatisation and the RoC Government has gotten into some trouble for bailing the airline out and being its cash cow. What the EU is claiming is that the practice is anti competitive because other privatised companies don't have the luxury of subsidising their operation with State Tax revenue.

But, in my view, I believe that amalgamating Cy Air and EuroCypria is a mistake. EuroCypria should remain a separate entity, but be a Cy Air owned subsidiary. EuroCypria can be the budget carrier whilst a privatised Cy Air can cater for business and offer a higher cost full service alternative for people like yourself!

Unfortunately, the public sector union is a massive obstacle, and this makes Cy Air a very unattractive proposition to a would be buyer or consortium. But I know that most Pilots and Engineers are in favor of privatization at Cy Air.