Cyprus Airways job cuts to continue

Further job cuts are expected at the troubled Cyprus Airways (CAIR) as part of the new strategic plan to be submitted to the government next week, the airline’s vice president Frixos Savvides said Tuesday.

The national carrier, which announced net losses of CYP 20.4 mln for the first half of this year, laid off 200 employees earlier this year, despite earlier plans, to axe a third of its 2,000 staff.

CAIR reported losses of over CYP 30 mln in 2004, forcing it to seek European Union approval for a short-term loan of the same amount. This was granted in May on condition that the airline submit a new strategic plan to the EU by November that would demonstrate its continued viability.

CAIR also needs approval for a second loan of CYP 60 mln in order to repay the first loan and use the rest to restructure the airline.

Savvides said once the new plan the government go-ahead, it will be forwarded to the EU in time for the November deadline.