CAIR pilots reject rescue plan

The Cyprus Airways pilots union PASIPY rejected the rescue plan submitted by the Board of Directors aimed at cutting costs, explaining that the plan was inconclusive and did not meet their minimum requirements leading to a complete turnaround.

The pilots, who previously said that they have prepared their own rescue plan, which is piling up dust, expressed their displeasure with the new rescue bid submitted by the Board.

“We are worried because the plan does not seek to find a solution to the many problems confronting the airline, and instead places all blame on staff, who should not be saddled with the mistakes of successive CAIR boards.”

The pilots warned they would retaliate with strong measures if the plan was ever put in front of them again.

Under the plan CAIR must find cost savings of CYP 20 mln through the forced redundancy of 343 staff, almost one fifth of its staff. The plan also includes across-the-board salary cuts starting with 8% for pilots and top managers and 5% for the remainder of staff, plus other cuts in benefits, most notably to the provident funds, which are sacrosanct to the unions.

The new Chairman of CAIR, Lazaros Savvides has pinned his hopes on the unions agreeing quickly to the blueprint, which it must submit to the EU on November 2 in order to gain approval for a CYP 60 mln loan to cover the CYP 10 mln cost of redundancies, CYP 30 mln to pay back a recently-acquired short-term loan, and CYP 18 mln for the cost of restructuring.

The other CAIR unions are also opposed to the main points of the rescue plan and are most likely to reject it leaving the Board no other alternative but to declare a deadlock, casting doubt on the future of the airline.