Cyprus Mail
Business Cyprus

CY board absent in time of crisis

Cyprus Airways (CY) chairman Makis Constantinides said on Friday he could not get the necessary number of board members to meet and discuss a plan he drafted in a bid to rescue the ailing airline.

“I prepared a new plan. I am trying to do something with the board, the board is not available for certain reasons and this is not what’s best and it is annoying,” he told the Cyprus News Agency.

The necessary quorum is five out of the eight members.

Constantinides suggested people had not really grasped the gravity of the situation.

“That is why I feel that something must be done and I have taken this on personally,” he said, without disclosing any details of the plan.

“I have the plan ready, I decided how to handle it and you will hear some news in the coming days.”

Constantinides said CY expected to record over €16 million in losses in 2014 instead of €10 million the previous chairman had announced in parliament.

“I am concerned about the ignorance concerning the situation we are going through,” he said. “Complacency bothers me.”

The airline is waiting for an EU decision on whether Cyprus broke state aid rules by subsidising it with around €75 million in previous years.

A decision to return the money would mean the end of the company.

A government source said last week that the EU could give a positive response if a strategic investor was found and the company completed a restructuring plan that included shedding 320 jobs and further cuts in benefits. CY currently employs 560 people.

Talks with two potential investors have not yielded any results so far.

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