CYPRUS Airways yesterday presented the company’s workers with a raft of cost-cutting measures aimed at saving the ailing airline, expected to post a €30 million loss this year.
The around 20 proposals do not touch salaries directly – they mostly target benefits and allowances – but will affect total income.
“It is our position that once again we will contribute to rescue the company, as long as certain conditions are met,” said Charalambos Tappas, chairman of the pilot’s union PALPU.
He added that everyone should do their part and warned that they will not accept the workers paying the lion’s share for the rescue.
The measures include a cut in shift allowances and overtime pay as well as a cut in vacation time across the board so that the maximum number of days will not exceed 25.
The measures were presented yesterday to the company’s five unions in successive meetings.
PEO representative Antonis Neophytou said the measures were divided into three groups: the first including Turkey’s ban on use of its airspace, issues related to the Cyprus Tourism Organisation, the airport and civil aviation.
The second group includes matters such as ticket prices, marketing and restructuring the flight schedule.
“We have expressed our views on these issues and have asked the company to take the necessary administrative measures to improve the areas, which exclusively concern the management,” Neophytou said.
He said the third group of measures concern the staff, which has been asked to cooperate for one year.
“We agreed to discuss them (the measures) … and return with our views,” Neophytou said.
“We believe there is a need to keep Cyprus Airways going, not only for the workers but alsofor the country’s economy, tourism and society itself,” he added.
Neophytou stressed however that the effort to rescue the airline must be collective: “If they only focus on the workers then things will be very difficult.”
Antonis Michaelides, representative of the engineers, said the measures were “quite tough for the workers”.
He said the company’s proposals will be examined carefully before any decisions will be made.
Cyprus Airways posted a loss of some €25 million for the first half of the year and is set to reach €30 million for the whole 2010.
The company is trying to find ways to avoid the fate of charter airline Eurocypria that shut down its operations earlier this month.
Eurocypria creditors yesterday appointed a liquidator and a supervisory committee to oversee the company’s wind-up and dissolution.
