EUROCYPRIA airlines, which went bankrupt last month, could be ready to resume operations under a different name and structure as early as the start of next year.
Chris Iacovides, the liquidator appointed by creditors to oversee the wind up of the company, said yesterday that a five-year business plan for the reactivation of the airline is ready to be submitted to interested private investors.
There are currently around 10 interested parties from Cyprus and abroad, Iacovides said, including the Archbishopric. Iacovides said the business plan would be handed over to Archbishop Chrysostomos and his advisors “today [yesterday] or tomorrow.”
The business plan shows that a new downsized company could make a €30 million profit in five years.
“I believe it would be the right move for investors to put their money into a new structure that is based on the backbone of Eurocypria,” Iacovides said.
He reiterated that the company could turn into a profitable enterprise as it had a lot going for it: its flight crews, which were a major asset, its reputation, clientele and brand name.
“There is an [investment] interest from certain countries, and I think that if the new company is able to fly to these countries, the profit potential will be much greater [than previously.”.
“It would be somewhat difficult for the same company to continue as Eurocypria. Rather, it is better for a new company to emerge from the ashes with a new name and new shareholders,” he added.
In addition, the formerly state-owned corporation still has a number of receivables. On the flipside, the company’s premises must be sold to pay creditors. Also up for sale are aircraft parts.
“There are also some other issues…but now is not the time to go into details…which the liquidator will look at and which can possibly bring in more cash. There are certain payments made over the past few months which need to be examined,” said Iacovides.
The closure of the company in November left some 320 employees out of a job. A compensation package has not been finalised yet, although the workers last week received their notice wages.
Under the business plan, the airline would start off with two aircraft, gradually growing to four airplanes over a period of two years. But the first six months of operation would be critical, Iacovides said.
He went on to warn that salary cutbacks were necessary in order to put the new company on a solid footing – an assessment which Andreas Kalos, head of the Eurocypria pilots union, agreed with.
“At this time, the wages are the least important factor. We have always believed that Eurocypria can be a profitable venture. And had the company not been sucked dry all these years, it would have made profits,” said Kalos.
Though declining to elaborate on who was “sucking dry” the company, Kalos did refer to “overcharging for certain services, which resulted in millions of euros being drained from the company’s coffers.”
