By Jean Christou
Cruise giants Louis will take to the skies at the beginning of next year with the launch of its charter airline, the company said yesterday.
But the approval of the charter licence for Louis has caused some concern to Cyprus Airways and its charter arm Eurocypria, which feels unprepared for the competition.
Louis marketing manager George Michaelides told the Cyprus Mail yesterday that the new airline would be called ‘Capital L Airlines’, and would operate along the same lines as Eurocypria, bringing in tourists from aborad but not operating out of the island itself.
Markets will include the UK and European countries. Louis already brings in some 600,000 tourists each year through its travel agencies in other countries, not including the thousands of people it takes on mini cruises each year from Cyprus.
“We will not be taking Cypriots abroad,” Michaelides said.
The Louis manager said the firm wold be leasing three aircraft, each with seating for 160 to 170 passengers.
He said it was still early for any decisions on whom Louis would lease from, but added it was unlikely to be Cyprus Airways. “We have just now received the permission. We will wait to see which tour operators will be interested in the idea,” Michaelides said. “There are already 40 charter companies coming into Cyprus from many countries. Getting into this area is a new development for the company. We are covered in all other aspects and the one which was left was the airline business.”
Permanent Secretary of the Communications and Works Ministry Vassos Pyrgos said yesterday the Louis licence would be issued for a period of one year; if the Air Licensing Authority is satisfied with the company’s performance, it will renew the licence every five years.
But Cyprus Airways (CY), already facing strike action this week, expressed concern over the government’s move to grant a licence to Louis.
CY spokesman Tassos Angelis said yesterday the government was not giving the national carrier enough time to become competitive.
“They (Louis) are going to be in competition with us, Eurocypria and Cyprus Airways on the IT (Inclusive tours) traffic,” Angelis said. “Our position is that the government should not have gone further towards liberalisation.”
Cyprus will have fully to liberalise its air transport policy before EU membership, in line with other member states.
Angelis said CY felt the government should have allowed the company more of a “breathing space” to reorganise and become more competitive in the face of liberalisation.
“Things are moving very quickly and these new developments show how important it is for us to impalement our strategic plan to make the company more competitive and viable,” Angelis said. “It shows how quickly liberalisation is taking place.”