Bloomberg News

Cyprus Airways Vows to Continue Flying, Assures Passengers

February 07, 2012

Feb. 7 (Bloomberg) -- Cyprus Airways Ltd. described media reports that it’s about to stop flying as “scaremongering” and said it will continue operating.

“Such scaremongering is unfounded, lacks seriousness and may probably serve other agendas,” the state-run company said in an e-mailed statement today. “It also causes confusion and uncertainty among passengers intending to travel with the company”.

The airline, which posted losses of29.3 million euros ($38.4 million) for the first half of 2011, said it is in talks with its shareholders, including the Cypriot government which owes 70 percent, to secure its viability and to attract a “credible strategic investor”.

Cyprus Airways recorded net income of 215,000 euros in 2010, after receiving a 20 million euros compensation package from the Cypriot government for extra costs incurred as a result of Turkey’s ban on Cypriot traffic. It underwent restructuring a year ago in an attempt to save 40 million euros annually.

--Editors: Chris Peterson, Alan Purkiss

To contact the reporter on this story: Stelios Orphanides in Athens at sorphanides@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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