Cyprus Airways admitted on Thursday that its coffers are empty and the company is unable to pay the overtimes to its flight attendants and pilots.

According to StockWatch sources, the national carrier’s Management should have paid the overtimes to its staff in late January. Instead, the Company sent a letter on January 25, 2005 to inform the trade unions that “due to the ongoing negative financial condition and the liquidity problems, Cyprus Airways will submit the overtimes to its staff in the first 15 days of February”.

However, the Company failed to meet its obligations and all four trade unions that represent the Cyprus Airways employees sent a letter of protestation.

The Company sent a new letter on February 15 to the General Secretaries of the trade unions, emphasizing once again that “due to the ongoing negative conditions, the payment of the overtimes will be transferred at a later stage, when the Company receives a loan in March”.

The latest developments hit the reliability and the status of the company in a period when dramatic efforts have been made for its survival, trade unions told StockWatch.

Invited to comment on the developments, CAIR personnel manager, Papmbos Charalambous ensured that the company has liquidity problems but it does not intend to violate any agreements.