Pilots seeks to buy stake in Cyprus Airways

By Jean Christou

THE GOVERNMENT has asked Cyprus Airways (CY) pilots to submit a written proposal for their offer to buy a substantial stake in the airline.

Members of pilots union Pasipy met yesterday with Commerce, Industry and Tourism Minister Nicos Rolandis to brief him on the idea.

The pilots last month mooted the possibility of buying the 12 per cent stake in the airline that the government has to sell by September under stock exchange regulations.

The government, which must reduce its stake form 82 per cent to 70 per cent, has so far been unsuccessful in its attempts to offload the extra shares, but pilots have now come forward with a feasibility study outlining their own deal.

According to Cyprus Mailsources, the government is thought likely to react positively to the proposal, and believes it is a “good idea”.

Rolandis said yesterday he would not like to comment on the offer until he had seen it in writing.

Speaking after yesterday’s meeting with Pasipy, he said: “They have some productive ideas to help the company and its future.”

“They will send the proposal in writing and it will be evaluated by the government,” the Minister added.

According to the pilots, the deal would involve around 100 CY pilots purchasing the 12 per cent stake – over five million shares – at a cost of around £2.5 million.

The airline’s 2,000 staff have already been offered a 22 per cent share deal by the company in return for cost-cutting concessions that would save CY £5 million a year.

Unions have so far been unenthusiastic and have not yet given an answer to management. Pilots say the management proposal would only give them a one per cent stake in the airline, where they want a controlling interest.

They believe that, in order to survive CY, has to have the active participation of the employees.

A feasibility study carried out on behalf of the pilots, which was completed several weeks ago, has concluded the proposal would be a very positive move for CY, the pilots say.

Pasipy is currently in a dispute with management over promotions within CY and its charter firm Eurocypria.

Rolandis said he had also been briefed on the dispute yesterday in his capacity as Minister for Tourism, but did not wish to become involved.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.