Cyprus Airways' reveals its plan

Cyprus Airways' chairman, Tony Antoniou, has revealed a contingency plan in case the bankrupt airline is wound down.

Cyprus' flag carrying airline is awaiting approval from the European Union's Competition Commission regarding its plans for a €54m turnaround project.

Should it be rejected, Cyprus' air transport network would suffer significantly. In which case, the plan is for the airline's subsidiary, Cyprair Tours, a tour operating company, to continue its parent airline's flights, taking both its slots and staff.

Of course, Antoniou was quick to assure that no one would loose their job in the swap over. However, let's not forget that the airline has already lain off 490 staff and has suggested firing more in its plans submitted to the authorities.

While Antoniou meant to reassure the airline's existing crew and staff one wonders whether, in part, he is reassuring himself that his job is intact.

Should all of the airline's executives stay at the helm, they will struggle to ensure the carrier (in whatever form it takes) doesn't submit to the same fate. Not only will they have to battle against the country's poor economy but also against any impact from the potential military attack on Syria.

The carrier has already rescheduled a flight from Larnaca to Beirut due to the tensions. Britain's government has suggested involving its military bases in Cyprus and has already deployed six RAF Typhoons to Akrotiri, Cyprus as a defensive measure.

The commission is due to give its decision next month. Should the plan go ahead, the airline will need to find the €54m it needs to bring itself out of bankruptcy. Cyprus' government, which holds a 70 per cent stake in the carrier, is seeking an investor for at least half that sum. Antoniou told the press yesterday that it had received "serious interest" from investors and foreign airlines.

The €54m bailout it needs is hefty, though it is short of the €55.8m it lost last year, plus the €23.9m it sunk in 2011.

By Mary-Anne Baldwin