Finance Minister: Merging of Cyprus Airways and Eurocypria is necessary

Cyprus Finance Minister Charilaos Stavrakis has said here Thursday that if the Cyprus Airways and Eurocypria merge does not take place, then there is a great chance the island will be left without a national carrier.

Speaking after a meeting he held with the Board of Directors of Cyprus Airways, Stravakis said he was briefed by the Board on the financial results of the first semester of 2010 which he described as “very bad”.

The Minister said the losses are nearly 26 million euros, and to a great extent this was caused by the drop in income per passenger and also due to the increasing competition on vital destinations such as Larnaka-Athens and Larnaka-London.

At the same time, he added, Eurocypria, faces similar problems involving competition and financial survival.

The Minister said that for these reasons the Council of Minister has recently decided the merging of the two companies, something as he noted, that has to be approved by the European Union.