Cyprus Airways is planning to fire 500 employees without giving them compensation, the website newsit.com.cy, reported because airline officials said the carrier can’t afford to pay them as the island reels into a recession and economic crisis.
The air line has 11 aircraft and each cost one million euros ($1.3 million) a month to rent, but four will be reportedly grounded. One of the main routes, from Larnaca to London also looks to be scrapped as airline officials hope to save 30 million euros ($39 million) annually in cutbacks.
Transport Minister Tasos Mitsopoulos said the company recorded losses of 56 million euros ($72.8 million) last year but that the government hopes to save the business somehow. He said bidders are being sought, including Chinese investors.
At the same time, he said, we are in contacts to find a strategic investor. In this context, Mr. Mitsopoulos will have a meeting today with Chinese investors who have shown interest in buying the company.
Cyprus Airways has its offices in the capital of Nicosia. It used to operate scheduled services to 24 destinations in Europe and the Middle East, which does not include the airlines codeshare destinations. It flies from its hub Larnaca. The airline celebrated its 65th anniversary in 2012.
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