CY deal with unions will save €4.0 million

Cyprus Airways (CY) has struck a deal with workers to cut its contribution to their provident fund significantly for 15 months, it was announced on Friday.

The deal, struck with the unions – apart from the pilots — will see the airline reduce its contribution to 1.0 per cent, from 8.0 per cent, a move that will save it some €4.0 million.

“This agreement reflects the determination of the unions and staff to support Cyprus Airways and the management during a crucial juncture,” a statement said.

The airline said the savings achieved through the deal, along with a series of other cost-cutting measures, bolstered the efforts to keep the airline going.

Those efforts were dealt a blow this month after a deal to sell Qatar Airways a timeslot at London’s Heathrow airport fell through when its details were leaked to the media.

The Gulf airline reportedly turned to a better offer from another cash-strapped aviation company, after details of the €20 million deal were made public.

Nyras, an aviation solution company that was brokering the deal between the two carriers, sent a letter to the CY board, scolding them for not keeping the details of the agreement under wraps.

Nyras noted that Qatar Airways probably had a better deal by a company that sold its timeslot cheaper.

 

 

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.