State may buy Eurocypria

The government is contemplating the purchase of Eurocypria, the charter subsidiary of Cyprus Airways and its conversion into a scheduled airline in the event that unions reject the government?s rescue and restructuring plan on Friday.

Government Spokesman Kypros Chrysostomides told reporters that the Council of Ministers has given the go-ahead to the Minister of Communications Haris Thrasou to put into motion the necessary mechanism according to which in the event of a union rejection of the plan, the state will proceed with the purchase of Eurocypria.

According to press reports, Eurocypria is valued at between CYP 15-20 mln as per a valuation made by PricewaterhouseCoopers on account of the government.

Chrysostomides said that the government may also decide to buy or lease additional planes from Cyprus Airways as Eurocypria is turned into a scheduled carrier, but there was no mention of who and how the Cyprus Airways slots at prime European airports such as Heathrow would be treated.

In the meantime, the Engineers union of Cyprus Airways ASISEKA decided by a wide margin of 78% in favour to back the restructuring plan.