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.