Cyprus-Forum.com

[supporttheunderdog]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non-flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble, including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.

http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However will we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

[Paphitis]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.
http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However qill we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

Yes, this could be likely to occur if the company is not allowed to restructure by the unions.

The carrier can shed up to 25% of its personnel, but the unions may not allow it which means that 100% of its personnel could be jobless one day if the Government stops subsidizing it.

[supporttheunderdog]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.

http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However qill we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

Yes, this could be likely to occur if the company is not allowed to restructure by the unions.

The carrier can shed up to 25% of its personnel, but the unions may not allow it which means that 100% of its personnel could be jobless one day if the Government stops subsidizing it.

Under EU law the government cannot subsidize CY anymore - that was Malev's biggest problem- illegal subsidisies had to be paid back.

[Paphitis]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.

http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However qill we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

Yes, this could be likely to occur if the company is not allowed to restructure by the unions.

The carrier can shed up to 25% of its personnel, but the unions may not allow it which means that 100% of its personnel could be jobless one day if the Government stops subsidizing it.

Under EU law the government cannot subsidize CY anymore - that was Malev's biggest problem- illegal subsidisies had to be paid back.

Yes I know. It gives Cy Air an unfair competitive advantage against privately funded airlines in the EU.

But the Government has bailed the airline a number of times in the past.

[CBBB]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.

http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However qill we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

Yes, this could be likely to occur if the company is not allowed to restructure by the unions.

The carrier can shed up to 25% of its personnel, but the unions may not allow it which means that 100% of its personnel could be jobless one day if the Government stops subsidizing it.

Under EU law the government cannot subsidize CY anymore - that was Malev's biggest problem- illegal subsidisies had to be paid back.

Yes I know. It gives Cy Air an unfair competitive advantage against privately funded airlines in the EU.

But the Government has bailed the airline a number of times in the past.

Logically it would give them an unfair competitive advantage against privately funded airlines in the EU, so they must have worked very hard to F it all up!

[Paphitis]

On Friday the Hungarian flag carrier, Malev, suddenly stopped flying. In the past few days two other non flag carriers, Spanair and Cirrus, went under. According to reports in the Economist, other airlines are in trouble including the Czech and Polish Flag carriers CSA and LOT.

http://www.economist.com/node/21546853

The lack of profitability at Cyprus Airways is well known: The Government has even anounced they are looking to sell a majority stake in the Company.

http://www.cyprus-mail.com/cyprus-airways/crunch-time-cyprus-airways/20120203

However qill we all wake up one morning soon to find that Cyprus Airways has just gone, like Malev?

Yes, this could be likely to occur if the company is not allowed to restructure by the unions.

The carrier can shed up to 25% of its personnel, but the unions may not allow it which means that 100% of its personnel could be jobless one day if the Government stops subsidizing it.

Under EU law the government cannot subsidize CY anymore - that was Malev's biggest problem- illegal subsidisies had to be paid back.

Yes I know. It gives Cy Air an unfair competitive advantage against privately funded airlines in the EU.

But the Government has bailed the airline a number of times in the past.

Logically it would give them an unfair competitive advantage against privately funded airlines in the EU, so they must have worked very hard to F it all up!

You know what it's like CBBB!

Cy Air is a public owned company and you have many people appointed into positions by the Government that are not qualified to be there. They also believe their jobs are for life and many will avoid work as much as possible.

That is why it is better for the airline to be completely privatized and restructured with productivity and efficiency based initiatives and a staff cull. If this does not occur then the future of Cy Air is very bleak.

It was the launch carrier for the IAE V2500 engine on Airbus, but since then there has been a steady decline.

http://www.cyaireng.com/fleet.html

I noticed they got rid of the A330s as well.

[supporttheunderdog]

I've got a personal interest in their survival at least until Wednesday as I am due to fly with them on Tuesday....

They must be getting worried with increasing direct competion on some routes, eg Aegean to London, and the low cost carriers such as Ryan Air now offering flights ex Paphos.

Otherwise agree that whole sale changes are needed: same applies, to for example, the Electric board, Cyta, etc., where quite possibly jobs are doled out the same way as Police promotions allegedly are.

[humanist]

In my opinion the inevitable has happened. The capitalist system has fallen to its knees. Until all governments take action to implement a super profit tax on companies with earnings into the billions this will happen again. Unless of course 2012 spells the change to a new world.

[Get Real!]

Is Cyprus Airways next

The government has rescued CA so many times I think they’ve had enough…

The biggest problem of course isn’t the airlines themselves but the rip off merchants who charge ludicrous amounts for spare parts that are obligatory due to safety rules. It’s by no coincidence that all national carriers who go by strict safety rules rarely if ever make a profit.

[Paphitis]

Is Cyprus Airways next

The government has rescued CA so many times I think they’ve had enough…

The biggest problem of course isn’t the airlines themselves but the rip off merchants who charge ludicrous amounts for spare parts that are obligatory due to safety rules. It’s by no coincidence that all national carriers who go by strict safety rules rarely if ever make a profit.

True to some extent. But airframes and engine mnufacturers spend Billions on R&D before there parts are certified. Each part is tested for thousands of hours and this adds to the costs.