Cyprus’ national carrier, Cyprus Airways, may continue to operate without taking a single penny from the government, the airline’s leadership has told technocrats representing the Troika (European Commission, ECB, IMF) during a meeting Saturday, as part of the third review mission of the island’s adjustment program.
The leadership has assured the technocrats that the company has revenue which will allow it to continue operating, pending the decision of the Competition Committee of the European Commission on whether the company will continue to operate as it is at present or whether it will close and reopen under another regime.
Chairman of the Board of Cyprus Airways Tonis Antoniou said he reiterated to Troika’s technocrats that the company has not received a single penny of public assistance in the past eight months.
He also said that he briefed Troika on the interest from potential investors, without giving any personal or confidential information.
Antoniou said the European Commission informed him that in February the Competition Committee will open the file of the company, in order to determine whether the last government aid of 100,000 euros received by the company was justified.
The company invoked the special conditions in Cyprus, as an isolated island with its northern part under Turkey’s occupation, to justify the second aid package received from the state in less than 10 years, something against EU competition regulations.
If the decision is negative, then the government must claim its money back and the company will be closed, to reopen later under a different regime. The European Commission is expected to decide on the matter in six months.
The Chairman of Cyprus Airways said there are still one or two serious problems and if they manage to overcome them, then the answer is expected to be positive.
Furthermore, he said that on Monday, the special committee appointed by the government to develop a plan B for the future of Cyprus Airways will meet for the first time to examine interest by potential investors for the sale of the company assets.
The Committee consists of the Ministers of Finance and Commerce, the Chairman of the Board of Cyprus Airways and the Auditor General.
As regards the economic results of the company, Antoniou said that for the past seven months of 2013 the economic results are expected to be much more positive than in the corresponding period of the previous year with fewer losses.
He also said that according to estimations for 2014, results can be balanced or perhaps there might even be profit under certain conditions.
Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout. The program featured a conversion of uninsured deposits to capital in a bid to recapitalize the island’s largest lender, Bank of Cyprus.
The leadership has assured the technocrats that the company has revenue which will allow it to continue operating, pending the decision of the Competition Committee of the European Commission on whether the company will continue to operate as it is at present or whether it will close and reopen under another regime.
Chairman of the Board of Cyprus Airways Tonis Antoniou said he reiterated to Troika’s technocrats that the company has not received a single penny of public assistance in the past eight months.
He also said that he briefed Troika on the interest from potential investors, without giving any personal or confidential information.
Antoniou said the European Commission informed him that in February the Competition Committee will open the file of the company, in order to determine whether the last government aid of 100,000 euros received by the company was justified.
The company invoked the special conditions in Cyprus, as an isolated island with its northern part under Turkey’s occupation, to justify the second aid package received from the state in less than 10 years, something against EU competition regulations.
If the decision is negative, then the government must claim its money back and the company will be closed, to reopen later under a different regime. The European Commission is expected to decide on the matter in six months.
The Chairman of Cyprus Airways said there are still one or two serious problems and if they manage to overcome them, then the answer is expected to be positive.
Furthermore, he said that on Monday, the special committee appointed by the government to develop a plan B for the future of Cyprus Airways will meet for the first time to examine interest by potential investors for the sale of the company assets.
The Committee consists of the Ministers of Finance and Commerce, the Chairman of the Board of Cyprus Airways and the Auditor General.
As regards the economic results of the company, Antoniou said that for the past seven months of 2013 the economic results are expected to be much more positive than in the corresponding period of the previous year with fewer losses.
He also said that according to estimations for 2014, results can be balanced or perhaps there might even be profit under certain conditions.
Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout. The program featured a conversion of uninsured deposits to capital in a bid to recapitalize the island’s largest lender, Bank of Cyprus.
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