[Anonymous]

[londonlad]

Given that Cyprus Airways recently posted a big drop in revenue and increased losses for 2012, do people think they can survive the present crisis?

I seem to remember they are still majority owned by the state.

[Str8Talking]

I don’t think it’s a case of “can it survive” but more a case of, for how much longer can a bankrupt government keep throwing millions of Euros at it? Unfortunately, there are no longer any interested investors to make a serious move to purchase. Let’s see if it is on the list of government assets that need to be sold off to secure a bail out!

They made a serious mistake not to take advantage of Cyprus’ strategic position 20 years ago and develop their connecting flights and expand further afield. Instead, they chose to remain a point to point carrier and subsequently lost out on what has now made the likes of Emirates, Etihad and Qatar the world leaders that they are! A real shame but that’s what happens when even cleaning staff were getting salaries equal to what some pilots were on, in other developed European countries!

[DontTurnRight]

It was struggling prior to these latest events and it’s chances do not look good unless the planes are given either Russian or German Registrations, depending on who bails the country out first.

[CXDiamond]

My prediction is that CY will survive, I’m not sure how and whether the EU will like the deal but it will survive. It’s time it was restructured and some of the nonsense about pay sorted out which probably will be nodded at with a token gesture.

[SimonS1]

National airline from a heavily indebted country with labour issues.

Send for Willie Walsh.

[LeTigre]

The current condition of Cyprus Airways is a stark reminder that if the market in question is small then it is increasingly difficult in tough times to support a large fleet.

Perhaps someone should remind Emirates that when the oil runs dry, and there is a global downturn taking out the transfer pax, 90 A380s become quite hard to fill. A city with a population of a few million will not be enough.

Watch and learn!

[transtraxman]

Quite so….? Look at Singapore Airlines

[JohnHarper]

SimonS1 – 22/03/2013 09:57 GMT

National airline from a heavily indebted country with labour issues.

Send for Willie Walsh.

That should see CY closed down overnight!

Le Tigre, Emirates might fall on hard times in the future but not the immediate future. Are you suggesting that because of what might happen they shouldn’t be trading now? The same could be said for almost any business but it’s just as well that they do trade and that measured risks are taken. If they weren’t Branson might never have started VS and you might not have a job!

[londonlad]

I would imagine fuel suppliers around their network are getting anxious about extending them credit and it’s not likely they’ll be able to pay with cash!

[DontTurnRight]

A good comparison might be with Air Malta. similar fleet size, heavily in debt and the recipient of EU funding. That said, with stronger management, Air Malta has made substantial progress in turning itself around and whilst there is a long way to go yet, it is heading now in the right direction. Malta currently has the advantage of a more robust economy, but if that was to turn significantly for the worse, all of this good work could be undone.

Best option but probably now too late for Cyprus Airways, would be to become a franchise carrier of either a large middle eastern or european carrier, failing which the odds are always going to be stacked against it.

[SimonS1]

Le Tigre – don’t really follow your comments there as there is very little oil in Dubai and never has been. I’m not sure what that has to do with EK.

As for transit passengers I think it’s the other way around. During the economic downturn more people have been willing to take transit flights. As someone was saying on here the other day the reality is EK, Qatar etc has taken passengers off the legacy carriers. That is why the likes of Virgin and BA have not been able to sustain flights to places like Dar and Nairobi whilst the Gulf carriers are opening up new routes by the month.

[Henkel.Trocken]

I think as more information comes to the fore, the question is more can Cyprus, at least the Greek part of it survive.

All of a sudden, the affluent and organised part of the island is the north and though I understand there is sympathy, there is no inclination to help given the enforced isolation they have suffered for years for merely wanting to be independent.

Clearly it’s time for a rethink on the whole Cyprus question, I don’t have any answers but the current situation is’t going to last.

[Str8Talking]

I don’t wish to get into a political discussion or a history lesson about Cyprus, other than to mention the fact that the North is unlawfully occupied by Turkey and that the border southbound has always been open – coincidentally, the northbound border only opened when Cyprus joined the EU! Turkey, Greece and Cyprus (as a whole country) are three independent entities all of which bear responsibility for the current division! I leave it to that!

Cypriots have a lot to answer for, in terms of the mess they are currently in! But, today’s battles have less to do with the banks and more with the oil/gas reserves (coincidentally at the same time rumours are circulating that Britain’s gas reserves are running out) and certain EU countries not liking the presence of a certain northeastern threat, which happens to want a military base in the Mediterranean! As always, it’s never about the people!

Back to the topic, there are still no indications as to where the airline fits in the pending economic restructuring! Only time will tell!

[esselle]

Not sure about the future of Cyprus Airways, but am sure that the bulk of the crisis currently facing the Cypriot economy is driven off the back of their making huge (relative term) investments in Greek bonds.

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