Cyprus Airways unions mull over rescue plan

Unions of the lossmaking state-owned carrier are still considering the rescue package put to them last week, which would cut one in five jobs and give the government EU permission to lend the airline money for a CYP 58 mln rescue package.

The government has until November 2 to give the rescue plan to the EU.

Cyprus Airways, which has 1800 staff, has failed to make a profit on any of its routes in the past year.

But unions look unlikely to accept the offer, with the largest union, CYNIKA, angry with the proposed deal, which they feel they have not been consulted about.

If agreement is not reached with the unions by November 2, the plan will be submitted to the EU and talks with the unions will continue.

If there is no agreement by the end of the year, the government will not be allowed to make its proposed loan and the airline could face bankruptcy.