Eurocypria could be absorbed by CY

PLANS TO merge Eurocypria and Cyprus Airways yesterday seemed to be shifting towards moves that would lead to the smaller airline being absorbed by the national carrier.
The Cyprus Airways (CY) board of directors announced on Friday that “the company could take over the operations of Eurocypria under terms to be agreed between the two parties and with the Republic’s government as the sole owner of Eurocypria”, thus hinting that the possibility of absorption was more feasible. 
Andreas Pierides, President of CY’s biggest union SYNYKA seemed also to prefer absorption over a merger, saying yesterday that the latter was not a viable option for the two airlines. “The absorption of Eurocypria’s operations is the only right route for a sustainable airline to be created,” Pierides said. “Cyprus Airways remains, and Eurocypria is absorbed,” he added.
Pierides also added that SYNYKA would accept no reduction of salaries or benefits when it came to Cyprus Airways employees.
As far as Finance Minister Charliaos Stavrakis’ early retirement plan was concerned, Pierides said CY supported the plan, but hinted that this might not be enough, given that Eurocypria has recently reduced its fleet and has been left with a surplus of employees. 
In turn, SEK’s Elisseos Michael said yesterday that he was “extremely worried” on behalf of Eurocypria’s staff who might be left unemployed.
Michael said the matter would be discussed in more detail when the new Chairman of Cyprus Airways was appointed today.
When asked about his opinion on the possibility of Eurocypria’s absorption instead of a merger, Michael said: “We’re not playing with words here. Eurocypria staff has to be transferred as it is, along with the company’s fleet and operations.”
Eurocypria, set up as a charter airline in 1991 by Cyprus Airways, was given a €35 million cash injection in February  when the company came close to collapse, while Cyprus Airways recently posted a €25.5 million loss for the first half of the year.
Years of mismanagement and an incapacity to compete with cheaper airlines are some of the reasons why the two Cypriot airlines are suffering. 
Pierides said that besides dealing with the logistics of absorption, the government and shareholders of both companies should act immediately so that other problems are resolved too. “Our inability to fly over Turkish air space, delays from the control tower and a lack of national policy on a national carrier are all problems that have been tormenting the two airlines for years,” Pierides said.
He especially emphasised the fact that, if an agreement was reached with Turkey, Cyprus Airways would be able to compete with other airlines, including low cost ones.

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.